Utility costs are not going to go down. Solar power is a way to lower and control future costs, lower current taxes, and lock in a future income source likely to be inflation resistant.
Solar power is one of the few improvements a small business can make to both reduce costs and increase income. Both State and Federal programs exist to incentivize solar installations. Small businesses sitting on cash reserves could invest in solar power to control costs and add a new income stream.
Solar Investment Tax Credit (ITC)
The Solar Investment Tax Credit is a 30% multi-year tax credit for residential or commercial solar installations that meet specifications. Unless extended, this credit is available through December 31, 2016.
These long term tax credits are credited with a 41% increase in solar installations in 2013 over 2012 and the generation of 143,000 American jobs [according to the Solar Energy Industries Association (SEIA)].
Tax credits are also given credit for lowering the price of producing solar energy, making it more affordable:
Department of Energy (DOE) Loan Guarantee Program
Larger solar projects have been supported by the United States Federal Department of Energy loan guarantee program. The White House Rural Council was created to increase rural opportunities and backed with loan guarantees. Projects supported so far include:
- California: $1.2 billion to construct California Valley Solar Ranch (CVSR) in rural San Luis Obispo County
- Hugoton, Kansas: first cellulosic biofuel facilities built in the United States
- One Nevada Transmission Line bringing wind and solar generated in Wyoming, Nevada and Idaho to California cities
State Solar Tax Credits and Incentives
A new DSIRE database of state incentives for renewables and efficiency is scheduled to be available in December 2014. There is an existing database containing both state and regional solar tax credits and incentives.
The number of credit and financing programs is far more than you would expect. Information in this database is extensive and includes:
- Green Building Incentives
- Leasing programs
- Local rebate programs
- PACE financing
- Performance-based incentives
- Property tax incentives
- Sales tax incentives
- State grant programs
- State loan programs
- State rebate programs
- Utility grant programs
- Utility loan prgorams
- Utility rebate programs
The DSIRE database also includes rules, regulations and policies including:
- Appliance / equipment efficiency standards
- Building energy codes
- Energy efficiency resources standards
- Solar / wind access policy
- Solar / wind contractor licensing
- Solar / wind permitting standards
This is not all of the data available in the DSIRE database. Communities in Massachusetts have community renewable energy products where local residents and businesses contribute to community solar arrays and benefit from the energy generated. Some have reduced their electric bills to zero by participating.
Small Business Case Studies
This excellent video explains how an established local heating and air conditioning business signed a 15 year lease agreement with their local power company with a 5 year payoff and 10 years guaranteed income. They eliminated their power costs and created a substantial income.
Video Highlights:- Creates local jobs
- 30% federal tax credit
- 15 year lease buys their power
- Incentives have improved
Many of the largest solar development companies like Martifer Solar can be called on to provide feasibility studies to maximize feasibility and minimize risk. Their existing connections and expertise can provide the strategic partnerships required to ensure maximum ROI.
Finding a solar development company is a shortcut to identifying existing programs. They should already know all of the incentives available in your area or have the resources and connections to find out.
Small businesses of all sizes could also use the DSIRE database to research the types of programs available to them. Between grants, tax credits, loan guarantees and other incentives you could be losing money by not going solar.
Gail Gardner
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Panels gives us that assurance of safety and assurance of not having power failure. am i right?
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Great information for those who are planing for small business . It’s really a great and helpful piece of information. I’m happy that you simply shared this useful info with us.
Very well written and excellent idea for those who are planning to start their own business on Solar power. Solar power development can be a good income source. I appreciate your writing. Keep it up.
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Excellent idea make small business on solar power.
thanks for sharing such a great information 🙂
keep the good work
This system of solar plant which is cost effective and also a better use of natural resources. Thank you very much for this informative post.
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Very nice article ….. Good guide for those who are planing for small business, I think everyone should have to pay attention on you lines.
Good guide for those who are planing for small business, I think everyone should have to pay attention on you lines.
True! Whichever industry your business operates in, switching to solar power can deliver real cost savings to your business. Upfront rebates known as Small-scale Technology Certificates (STCs) can reduce the upfront cost of installing solar. In some cases, you may be eligible for other incentives. Solar power is a highly visible means of clearly showing to your customers, your strong commitment to the environment.
Really awesome article for small business lovers. i had learn many things from above text
thanks for sharing helpful content with us. keep update informatic content like this . nice sharing.
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This is a great post ! is great idea to booth save money and energy
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A great way to save the environment and save money! Great post!
this is really nice cool article for me thanx
Great article and very helpful for everyone and I like your post thanks for share with us.
. It’s looking nice one because when you would like to get something then you would need to do something extra ordinary and this is the right time to do that. Beside that there are good options to get loan as well which will be help for you in many matters. Once you will setup this all then it would give income for whole life.
It is a best way to improve my business with our leader.thanks
yes aggred that to focus and put leg on fire for this things
it’s a big thing of save energy. because all energy product have a limit. and at a time we want to generate new thing for power. so solar energy is good source for it. and it’s a unlimited source for energy. And most of countary goverment also give loan for it. So it’s good source also saving money.Thanks for sharing this informative article.
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This technology very expansive in our country but a good concept i will buy when the price will be down. hope you will share more tips.
thanks
Umiar Aspira
Solar is expensive at first because of the materials but I think in the long term process you will gain profit especially when some power generators came up with power shortage.
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Hi Chris,
I included that one graph to show that the cost for solar materials is coming down. The more it is used, the less expensive it will be. As the cost of traditional utilities goes up, the value of solar becomes higher.
What a post :O
In this post, we can easily start a small business like these.
And the solar power business is just awesome I think.
But it’s not appropriate for every country I think.
Overall It’s a great idea to start a new business.
Solar is where new business will end up. With high cost of living no wonder why everyone will end up with solar.
I think a lot of business owners would be benefit from your idea. It is very important blog for business purpose.
Thank you, Rocky. Business owners need to get serious about growing their customer bases and I have much content showing them free and expensive methods to do so.
c’est un bon article pour le buisines.
c’est un bon article .
merci pour le partage .
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It’s a great idea to add renewable sources of energy, but I’ve read that since you’d need generally sunny days to provide energy you’d be in a constant flux between solar power and using the power grid. Hopefully the technology will be improved in the coming years.
Hi Phil,
Many of the lease contracts allow you to sell energy on sunny days and use it from the grid when necessary. Otherwise, a more complex solar system that includes batteries to store the energy for later use is required.
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it is a great improvement for small businesses in terms of reducing the cost and increasing the income.
Thanks for sharing informative article. These things really helpful for online readers. Solar Power Development is the great income source for small business.
Thanks for sharing valuable post with us. I appreciate your efforts.
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