By: Pivot Energy
February 17, 2022
Updated 10/23/23
There’s never been a better time to invest in renewable energy generation. The cost of developing a solar array has decreased significantly over the last decade, thereby increasing the overall return on investment (ROI) on commercial solar projects. And today, federal and state governments are offering more financial incentives than ever, reducing the upfront cost of a new clean energy project even further. Frankly, there’s no point in waiting. Keep reading to learn why you should take action to reduce your organization’s carbon footprint and boost your bottom line by investing in renewable energy technologies.
Beyond financial gains, embracing renewable energy generation is a significant step towards environmental responsibility, which provides a competitive edge in today's market. Companies with clearly defined Environmental Social and Governance frameworks can more easily tap into emerging markets and attract consumers willing to pay a premium for environmentally conscious products or services. Fossil fuels have long been the dominant energy source, but their contribution to climate change and air pollution cannot be ignored. By investing in solar, you’re contributing to a cleaner and more sustainable future.
Furthermore, the adoption of renewable energy sources can lead to greater energy independence. Installing solar panels and energy battery storage will reduce your reliance on centralized power grids and make your facilities less vulnerable to energy grid disruptions. In this way, investing in solar can provide a sense of control over your energy consumption, enhancing your resilience in the face of natural disasters and other such challenges. There most certainly does not need to be a natural disaster for your solar array and battery storage investment to be worthwhile. In fact, the benefit of coupling photovoltaic (PV) systems with batteries to increase year-round energy efficiency is an opportunity not to be missed.
With climate change driving more frequent natural disasters, the urgency to transition to renewable energy sources has never been more pressing. To accelerate this shift, federal and state governments are offering businesses generous tax credits, rebates, and more, that make the prospect of switching to renewables not only environmentally responsible but also financially prudent.
The Inflation Reduction Act (IRA) – the largest climate investment ever made by the US government – is a game changer for businesses looking to cut operating costs, reduce reliance on fossil fuels, and support a cleaner, healthier environment with solar energy. Most notably, the investment tax credit (ITC) as well as the production tax credit (PTC) each offer a substantial reduction in the tax liability for those who invest in solar energy systems. Even if your organization's tax burden is relatively small – such that you don’t have sufficient tax liability to claim the full incentive in a given year – the remaining incentive can be rolled over into future years for the duration of the tax credit’s existence.
Many states, including New York, Illinois, California, New Jersey, Oregon, Washington, South Carolina, New Hampshire, Massachusetts, Maryland, to name a few, offer additional tax incentives, net metering, performance-based incentives, etc. It is important to note that these state-specific incentives can be stacked on top of the aforementioned federal incentives, meaning that your business can realize even greater savings in these locations.
As a national renewable energy developer, Pivot Energy has a long track record of developing solar in both nascent and well-established markets, so if your organization has geographic constraints or is set on operating in a specific state, we have you covered.
A decade ago, the cost of developing a solar array was considered a significant barrier to entry for many homeowners and businesses. However, technological advancements have led to substantial reductions in the cost of solar panels and related equipment. The falling cost of PV panels, coupled with improvements in efficiency and energy storage, has made renewable energy solutions more accessible than ever before.
This decline in costs has a profound impact on the overall ROI for renewable energy projects. The payback period for solar installations has shrunk considerably, and the energy cost savings over the system's lifespan are often greater than the initial investment. In essence, what was once considered a substantial financial commitment has transformed into a strategic financial move that promises both immediate and long-term benefits.
The incentives are in place, the technology is ready, and the planet needs us to make this shift. It’s time to invest in renewable energy generation. If you’ve been considering going solar, there’s no time like the present to kickstart your journey to being reliant on clean energy infrastructure. No matter where you’re located, Pivot Energy is here to help you navigate the solar incentives and obtain optimal returns. Contact us today.
Pivot Energy
Together, solar and storage offer the unique ability to lower both demand and energy portions of a customer’s electricity bill.
