COMMERCIAL SOLAR
Solar has evolved to become the highest and best use of underutilized space at Commercial Industrial facilities. The value proposition is simple. Solar delivers peak energy at the time of day when grid supplied peak energy is most expensive. It’s a direct offset to HVAC and daytime production operations. Beyond the obvious benefit of producing peak energy onsite at a third the cost of buying power from the grid, there are soft benefits too: Shading your roof with PV modules can cut the cooling load of your facility 10-15% during summer months and that’s before the system is energized! Another point: Shading the roof on average doubles the longevity of roofing materials below. It might be tough to quantify these benefits in terms of dollars, but facility managers agree the value is real. Commercial Solar is both property and sales tax exempt in California.
Federal Tax incentives play a key role in Commercial Solar economics. The 30% Federal tax credit may be carried forward up to five years. MACRS accelerated depreciation allows commercial system owners to write off 85% of the project cost over 5.5 years. CA straight line 10-year depreciation also applies to commercial projects. In California, State and Federal tax incentives can offset up to 65% of the total cost of the project. When you combine the value of the peak energy offset with tax incentives, the returns are compelling. RA POWER & LIGHT Commercial clients typically see 20%+ ROI on Solar projects.
Although the Carbon market for environmental attributes as a tradable commodity has yet to fully materialize, carbon caps and emission controls placed on business owners in California by Assembly Bill 32 are very real. RA POWER & LIGHT “WREGIS Compliant” Commercial solar systems may serve as a future hedge against limits on Carbon emissions in California.
Lastly, beyond the dollars and sense, going solar says a lot about your Brand and culture as a company. Everyone has a stake in our environment. Everyone gains when commercial enterprises do their part to help shape our future. Green for Good®