There are options when it comes to taking advantage of solar for your business.
Top corporations across America are pouring resources into developing solar energy, including some familiar names such as Apple and Amazon, and supporting these investments with lobbying. Just recently, Pepsi, McDonalds and around 30 other companies sent a letter to U.S. congressional leaders in support of renewables, asking for cash stimulus and an extension of the Investment Tax Credit (ITC).
Your company doesn’t need to be a large multinational corporation with deep pockets to take advantage of solar energy. Regardless of the size of your company, there are several levels of participation that require anywhere from zero initial capital outlays to owning and operating your own solar panel system.
Additional Revenue Stream: Lease Your Rooftop for Solar
If your commercial rooftop has the space and specifications, renting it out for a community solar project will generate extra monthly lease income for your business that can last for decades.
OYA Solar will provide a free assessment of your businesses’ rooftop prior to offering a rooftop solar rental, and once the lease is signed, there’s nothing left for you to do but sit back and watch the project take shape. We will take care of the design, construction, maintenance, and anything else required to ensure the community solar project is up and running.
A community solar project operates through a subscription model and provides electricity bill discounts to any company, resident, public sector or government organization. Your company can sign up to your own rooftop solar project to receive reduced monthly energy bills, or the project can be opened up to nearby businesses and households to benefit the local community.
There are several key benefits to leasing your rooftop for community solar:
- No capital outlays
- Earn passive income
- Receive tax incentives
- Discounted electricity bills
Enter into Power Purchase Agreement (PPA)
A power purchase agreement (PPA) with a solar developer is one of the easiest ways to generate value for your business. A financial agreement is made where we (the developer) designs, permits, finances, and installs a solar PV system on your property or on another site with no capital outlays.
We will then sell the power that is generated from the project to you at a set rate per kilowatt hour and competitive with your local utility at the time of signing. We can offer you competitive energy rates because we make use of available tax credits and pass those savings onto you.
PPAs normally range from 5 to 25 years, and you have the option of keeping the solar PVs on your property after the agreement is completed. In any case, the costs of decommissioning and recycling the plant once the lease is over are taken into account.
There are several benefits to making a PPA:
- No capital outlays
- Discounted electricity bills
- Minimal risk
- Take advantage of available tax credits
- Increase your property value
Finance and Install a Rooftop Project
Purchasing your own solar PV system is a good option if you want to invest in a long-term renewable energy supply for your business. This option is especially useful if you or your business has high energy demands that will continue into the foreseeable future. You may also be eligible to take advantage of tax credits depending on your state.
Many states work closely with solar contractors and developers to offset the cost of purchasing a solar panel system. In addition to incentives and financing options, your business may qualify for federal tax credits and rebates for solar. There may also be loan structures in place specifically for solar that can support financing the initial capital outlay.
Recent trends by [WoodMac] show that in 2020, prices of solar modules will continue to decrease even after the pandemic. This means that installing your own project will eventually become cheaper than buying energy from your local utility. You will also be able to sell the extra energy you generate from your solar project and maintain a steady income for as long as you maintain the project.
There are several key benefits to installing your own project:
- You have total control over the project and its design
- You can sell extra energy to local utility companies
- There are no strings attached and no agreements with solar developers
Subscribe to an External Community Solar Project
Do you want to take part in solar energy without capital outlays or a project on your property? Subscribing to an external community solar project might be right for you. All it takes is a simple subscription with no disruption to service and you will be able to access the benefits of local renewable energy.
This option is ideal for businesses with a high energy demand that cannot install panels on their property or view the initial investment of time and capital to be too burdensome. If you are interested in subscribing to a local community solar project, look at this map to see which project is closest to you.
There are several key benefits to subscribing:
- Save up to 10% on electricity
- Support local renewable energy
- Build your corporate social responsibility portfolio to enhance brand trust and awareness
- Empower your local community with access to the benefits of solar
Important Questions to Ask Yourself
- Is my property suitable for solar?
A contractor or solar developer often will assess your rooftop (or land) before giving you a quote or offer.
- What is the condition of my rooftop?
Your rooftop may require repairs or maintenance before installation
- Which solar option(s) provide the best value for businesses with multiple property portfolios?
You may want to consider community solar or a hybrid solution for multiple properties with varying rooftop conditions.
- What are my options for financing my own project?
What are the local / state / federal incentives (tax credits, cash grants, etc.)? Is there a loan structure specific to solar that would be more attractive than the financing you typically access?
- What are the benefits of leasing my rooftop for solar versus installing my own system?
We would love to hear from you, and help you make the best decision for your business. Whether it’s subscribing to a nearby community solar project, installing a system on your property or land, or entering into a PPA agreement with us to rent your roof for solar power – we’re here to help.