Going solar for commercial buildings
Commercial solar adoption is driven primarily by significant financial benefits, not just environmental concerns. While solar installations help companies achieve sustainability goals, the most compelling reason is the substantial cost savings from reducing reliance on expensive coal-generated electricity.
For example, one of our customers with a 230 kW rooftop solar system has prevented 2.2 million lbs. of CO2 emissions in just a few years. This is equivalent to planting 16,000 trees and significantly reducing harmful pollutants from coal plants.
What Are The Financial Benefits of Purchasing Commercial Solar
Purchasing a commercial solar system offers significant financial benefits. Building owners gain full ownership, maximizing tax incentives like the 30% federal tax credit and bonus depreciation, along with various state and local incentives. With typical ROIs exceeding 180% and payback periods between 3-7 years, solar investments in the mid-Atlantic region pay off quickly compared to their 25+ year lifespan. The phased payment structure aligns with project milestones, simplifying budgeting and financial forecasting.
Photo credit: Marcos Paulo Prado/unsplash
Power Purchase Agreement for Commercial Solar Benefits
A Power Purchase Agreement (PPA) is a compelling option for organizations seeking to leverage clean energy without the burden of owning solar panels (PV system). Under a PPA, a solar developer owns and maintains the system, benefiting from tax incentives. Meanwhile, the organization enjoys reduced utility costs and the environmental advantages of renewable energy. This approach requires minimal upfront capital investment and has gained significant traction among both businesses and government entities.
What Is C-PACE Financing for Renewable Energy Projects
C-PACE (Commercial Property Assessed Clean Energy) financing is a public-private partnership that enables businesses to install clean energy systems with no upfront costs and immediate positive cash flow. Unlike Power Purchase Agreements, C-PACE allows the building owner to own the system while reaping tax benefits shared with the lender.
This innovative financing model provides low-cost, fixed-rate loans repaid through property tax bills over 20+ years. With payments integrated into property taxes, businesses enjoy reduced operating costs before the first C-PACE installment is due. System ownership empowers building owners to maximize financial returns from incentives and energy savings. Moreover, C-PACE financing can be transferred upon property sale and is generally available for all commercial properties.
Our project on Eaton Street in Baltimore
Advantage of Commercial Solar With Aurora Energy
Aurora Energy, a local leader in solar installations for nearly 30 years, brings expertise and personalized service to MD, DC, and VA businesses. Our NABCEP-certified team designs, installs, and maintains tailored solar systems, leveraging strong partnerships with developers, financiers, and Montgomery County Green Bank to make your transition to clean energy seamless.
Contact us today for a no-obligation consultation – we’re passionate about solar and happy to answer your questions!
