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3 Reasons Why Your Businesses Should Install Solar in 2018

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3 Reasons Why Your Businesses Should Install Solar in 2018

  1. 14% Reduction of the Corporate Tax Rate
  2. 100% Depreciation Bonus
  3. 30% Tax Credit Available

1. 14% Reduction of the Corporate Tax Rate

One of the most significant benefits of installing solar under the new tax plan is the reduction of the federal corporate tax rate from 35% to 21%. An important deciding factor for businesses considering going solar is the increase in profits that can result.

While this historically low corporate tax rate brings new investable cash to the business world, it simultaneously produces a net increase in the cost of energy for the same business. Under the previous tax code, a $1,000 monthly power bill would be deducted as an operating expense at a 35% percent yielding a net cost of $650.00. Under the new code, that same $1,000.00 bill is deducted at a 21% rate generating a net power bill of $790.00. Your power bill is going up 21.5% regardless of the current utility rates from the operating tax deduction alone, making renewable energy more valuable than ever.

For increased savings, solar systems purchased outright with cash avoid the taxes that come with loan interest payments, making cash a more attractive option than financing. Add to that an increased rate of return each year as a result of the lower tax rate and solar becomes a viable investment for businesses.

2. 100% Bonus Depreciation

With depreciation now at 100 percent, a business can deduct the entire cost of the solar system in its first year rather than spread it out over a period of time. This allows corporations to take advantage of the tax savings now rather than in the future, resulting in growing returns from going solar as well as an increase in the total value of the project.

3. 30% Tax Credit Available

The federal solar tax credit allows you to deduct 30% of the cost of installing a solar energy system from your federal income taxes until 2020. You can also claim the tax credit as soon as the construction of the system begins. The tax credit and depreciation benefit can help reduce the system price by as much as 60 percent. Add that to savings from a reduced utility bill, and business owners are looking at a bright investment.

Seeing is Believing

Some of Florida’s largest businesses like Publix Supermarkets, Ed Morse, Lockheed Martin, and Advanced Roofing have installed solar on their properties, from rooftop installations to solar carports. Solar has short payback period, provide steady financial returns, and help business owner’s hedge against rising energy prices.   According to our data, Advanced Roofing paid on average $1,623.00 in monthly electricity bills before going solar. After the installation of an 84 kW solar carport at our headquarters in Fort Lauderdale, our electricity bill is approximately $890.00 ­­– a 55% reduction.

How much money can solar save your business?

Contact us today for your complimentary energy audit and project quote.

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What You Need to Know About the Tesla Rooftop Solar Shingles

Tesla Rooftop Solar Shingles

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Learn all about the new Tesla solar roof shingles coming out in 2017

2017 is looking to be an exciting year for the solar industry in Florida. Predictions show more growth and lower prices overall. Technology, designs, and applications are evolving, thru higher power density traditional solar modules, more efficient electrical designs, and possibly most notably with the recent announcement of the Tesla solar roofing tile, an integrated solar glass shingle, that is helping to make solar mainstream in the residential market with a focus on aesthetics and energy production.

The new solar roof shingle will be available later this year and come in four designs, giving homeowners the option to “go solar” without having to install large panels on their roofs. However, there is much uncertainty with the product at this time, and we should hear more about pricing when production begins later this year. Performance issues should also be cleared up by then since prototypes are operating two percent less efficient than the existing solar panel technology.

Tesla Solar Roof Shingles Long-Term Outlook

In the long run, we feel the success of the Tesla solar roof shingle will come down to its pricing. Based on similar shingles that were previously launched, we expect the cost of the Tesla shingle to be high and complex to install. According to Tesla, the cost of its new system will be lower than a traditional roof when combined with projected utility bill savings. Barry Cinnamon at Greentech Media ran the numbers and provided a few estimates based on the information that has been released so far. For a retrofit, this can range from $33,000 – $37,000, with a decrease in price for new production homes (est. $26,500) and new custom homes (est. $36,000). With paybacks for regular solar systems averaging 6.5 years, Tesla’s retrofit payback of 11 years will be less appealing for homeowners. Because there are far more homes than commercial businesses, it’s very unlikely homeowners will replace a proven, traditional roof system with a solar roof anytime soon. For those who want solar energy now, there’s always the option to integrate a more cost-effective traditional solar panel for energy savings. But with paybacks of 8.2 for new construction, Tesla is sure to be an attractive option in this market.

Rooftop Solar Return on Investment

With its high return on investment, large-scale commercial installations remain the most profitable solar energy solution in Florida outside of large-scale utility installations. According to the Solar Energy Industries Association, Major US corporations are installing solar at an astonishing rate, with commercial prices falling by an average of 16% in 2016. Advanced Roofing Inc. (ARI) is one of the nation’s largest commercial re-roofing companies and specializes in the design, procurement, and construction (EPC) of rooftop solar energy systems. Since 2007, ARI has installed over 200 megawatts of renewable energy for clients such as Lockheed Martin and the University of Miami.

Companies are choosing to go solar not only because of the environment but also for the financial returns. With rapid payback, stable internal rates of return, and a predictable cash flow stream, commercial solar projects can deliver outstanding long-term investment returns for businesses. A commercial solar project can generate incremental revenue, actually creating a new profit center. Electricity prices are highly volatile and difficult to predict. By generating clean electricity onsite, you can eliminate your businesses exposure to price volatility.

Solar Investment Tax Credit Available Until 2019

Furthermore, through the solar Investment Tax Credit (ITC), companies can also receive a 30 percent federal tax credit for installing solar on their property through 2019. With a 3-7 year project ROI for large scale commercial rooftop and carport installations and double-digit Internal rates of Return (IRR) over 25 years, now is the time to go solar, as we may never see incentives this aggressive again.

Whether it’ll be profitable remains to be seen, but Tesla’s foray into solar has piqued the world’s interest in rooftop solar, as homeowners anxiously await the production of these sleek new solar tiles in 2017.

Share Your Thoughts

What do you think about the new solar roofing shingle from Tesla? How do you see it being applied? Leave your comments below.

AGT Recognized as the Top Commercial Solar Contractor in Florida for 2016

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Advanced Green Technologies Earns the Top Commercial Solar Contractor Ranking in Florida for the Fifth Consecutive Year–44th in the Nation

For the fifth year in a row, Advanced Green Technologies (AGT) earns the Top Commercial Solar Contractor ranking in the State of Florida, and 44th in the nation by Solar Power World magazine, the solar industry’s leading media resource. The Top 500 Solar Contractors List is developed by Solar Power World to recognize the work completed by solar contractors across the U.S. and Canada. The companies on the list are growing the economy, providing jobs and offering electricity consumers a choice about how they get their power. The list was released on July 26.

Solar energy is a renewable resource with great potential to significantly reduce our nation’s greenhouse gas emissions, according to the Solar Energy Industries Association, a national solar industry association. AGT is a sister company to Advanced Roofing Inc., one of the nation’s largest commercial re-roofing companies, and specializes in the design, procurement, and construction (EPC) of solar energy systems. The company employs 25 workers plus a large crew of contractors who installed nearly 48 megawatts of solar in 2015. Since its founding in 2007, the company has installed 222 megawatts of solar carports, ground mount, and rooftop solar.

AGT works amid a burgeoning business market. The U.S. solar market is expected to grow 119% this year, according to global research firm GTM Research. While a majority of solar electricity is produced at large, utility-scale solar power plants, the greatest number of solar jobs are located with companies like AGT—firms doing the work to bring clean energy to the public.

We’re excited for the continued growth of solar and are proud to be the Sunshine State’s top solar contractor, building sustainable projects that help businesses meet their bottom line while producing clean energy,” said AGT President Michael Kornahrens.

The Solar Power World recognition comes on the heels of another big honor for the company last month. ARI and AGT received First Place for Sustainability for the third year in a row for its work building the massive 2.25-megawatt solar carport at Lockheed Martin’s Clearwater campus at the 2016 Florida Roofing and Sheet Metal Contractors Association (FRSA) S.T.A.R. awards program.

Read the Lockheed Martin Solar Carport Case Study, click here.

Contact AGT today and discover how solar can help your businesses bottom line.
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