Running a business requires careful monitoring of finances, from what your business brings in monthly to the expenses that cut into the profit pie. Most business owners and operators focus on the cost of labor and materials, as well as overhead expenses. One of the costliest overhead expenses your business will encounter is your monthly electric bill. There is a way to reduce the amount of money spent on lighting, heating, and cooling your business: Installing solar panels.

The Money Saving Benefits of Adding Solar Panels for Businesses

For years EnergySage marketplace data has closely monitored the energy savings delivered by businesses that opt for solar energy to power their properties. According to the data, commercial property owners paid on average nearly $2,000 a month in electricity bills before switching to solar panels. After making the move to solar, the same businesses saw their monthly energy bill decline to about $500, which is a 75% decrease in the cost of monthly energy bills.The price of purchasing and installing solar panels has declined substantially since 2014. What was once the sole domain of large corporations has become much more affordable for small and medium businesses that operate on tight budgets. However, lower equipment, installation, and maintenance costs are not the only ways adding solar panels will save your business money.

Accelerated Depreciation

Federal commercial tax law allows businesses to deduct up to 85% of the cost of adding a solar panel from their business income taxes. This is one of the best cost offsets of installing a solar panel system.

Performance-Based Incentives (PBIs)

PBIs, such as solar energy certificates, is a highly effective strategy for business owners to recoup some of the upfront costs of installing a solar energy system. An electrical utility sends payments out to business owners to cover some of the electricity generated by solar power. Payoffs are often significant enough to improve the overall financial health of a small or medium-sized business.

Federal Investment Tax Credit (ITC)

Although there is criticism the United States government does not do enough to promote solar energy, the Federal Investment Tax Credit represents the most lucrative financial benefit offered for both businesses and residences that use solar panels to generate power. Business owners that add new solar panels receive a federal tax credit of 30% for the cost of installing the eco-friendly system. Although the previous three ways for saving money by adding solar panels are considered tangible financial benefits, there are also three intangible financial benefits of installing solar panels that can be hard to quantify.

Attracting More Customers

This is a win-win proposition for businesses of any size. The first win is the cost savings of spending less money to market your products and services. A rapidly growing number of consumers are rewarding businesses that convert to using solar panels by becoming loyal customers of the businesses. Attracting more loyal customers will increase sales, and while not one of the cost-savings benefits of adding solar panels, it represents an effective way to increase your business profit margin.

Enhance Employee Morale

One of the most successful ways to reap the benefits of cost savings is for business owners to focus on improving employee morale. Countless studies have linked enhanced employee morale with an increase in worker productivity. An improvement in employee productivity decreases the cost of labor because workers are doing more in less time. Adding solar panels is a surefire way to boost employee morale and hence, improve worker productivity

Pump Up the Local Economy

When you sign a contract to install solar panels, you will be working with a local company to complete the installation project. The higher the demand for solar panel projects, the more money that flows into the local economy. What does this have to do with saving money? How about the more tax revenue a city receives, the more likely the city will decrease taxes and other business fees. With all of the money-saving numbers adding up for business owners, it is not surprising to learn solar energy is expected to become more of a player in the energy production market. For more information, refer to the Chambers for Innovation and Clean Energy (CICE) to learn more about why solar panels make financial sense for your business.