Financial Incentives for Your Business to Use Solar Power

When it comes to running a business, much ofis using, the energy is sent into the utility grid and
the necessary focus is on the bottom line. Manythe building power meter actually runs backwards.
businesses, however, fail to realize they canSince many businesses are closed two days a
seriously cut energy costs by going solar.week, this effectively means the utility is buying
Tax Incentivesthe power on said days. Net metering is an
Federal and State governments know the bestincredibly effective means of slashing utility costs.
way to initiate change is to provide an economicSolar Loans
benefit. When it comes to energy, governmentsBusinesses can gain further benefits through going
try to make the use of solar energy assolar by taking advantage of government solar
economically attractive as possible to businesses.financing programs. These loan programs offer
This is done through granting tax incentives in theincredible terms in an effort to promote the use
form of tax credits and deductions. Dependingof renewable energy and make sense for both
upon which government agency is involved,new construction and renovations. Typically
federal or a particular state, corporations can getcreated as state programs, these "solar loans"
tax credits and deductions ranging from 10 to asoffer financing for the purchase and installation of
high as 35 percent of the cost of purchasing andthe equipment. The loans typically have seven to
installing solar energy systems.10 year terms, and are offered as no interest or
Net Meteringextremely low interest financing. Combined with
On top of the tax incentives given to businessesthe economic benefits of net metering, such loans
for going solar, a majority of states now offermake the decision to go solar a slam dunk.
incredible cost savings through net metering. NetEach state tends to handle the promotion of
metering refers to state laws that require utilitiesalternative energy in different ways and with
to purchase power generated from solar systemsdifferent benefits. When combined with federal
used by businesses at the same price the utilitiesprograms, businesses can reap a financial benefit
would otherwise charge the business. If thefrom using solar energy sources.
business is producing energy in excess of what it