Every thousand-mile journey begins with a single footstep, but nothing sours the beginning of a journey like a business’s Bigfoot-sized carbon footprint. In addition to bolstering your brand and advocating environmental responsibility, these are the most significant factors that make going green a smart decision for any business.
What are the most intriguing factors for most business owners? Everyone wants to save money where they can. There are plenty of ways to save when it comes to going green, whether you want to start small by changing lighting an equipment or adding commercial-grade solar to your office.
The federal government has a solar incentive for anyone who’s interested in installing solar panels. These incentives allow individuals that would normally not be able to afford solar the ability to purchase the products they need, cover installation, and create a greener business via commercial solar.
This is given through a 30% tax credit. In this credit, 30% of your solar array is covered by the federal government. And while the credit may decrease for both residential and commercial systems by 2021, commercial solar installations will still receive a 10% tax credit after that deadline.
Green businesses don’t just run more efficiently, the trendsetters of our generation prefer to give them more money. That’s just one of the boons of going solar in the state of Utah, where the population is resoundingly young compared to the rest of the country. The same holds true, though to a lesser degree, in the state of Nevada.
Three-fourths of Millennials are willing to pay extra for sustainable offerings, according to a recent Nielsen survey. For Generation Z, 72% of respondents aged 15-20 are willing to pay more for products and services advented by companies that are committed to positive social and environmental impact.
A study from Cone Communications showed that nearly half (45%) of consumers actively seek out environmental information regarding the products they buy. Further analysis also revealed consumers want products that aren’t just good for the environment, but were made using sustainable practices.
However, businesses can’t just go green because it’s going to reel in more business or save more money. The motives are as important to consumers as the outcomes and byproducts of your operational choices, which commercial solar can positively impact.
Trendsetters are the ones who do things not just because everyone is doing it, but because they want to do it. They see the benefits before the general public has caught on. The purchases our generation makes today are setting the trends for tomorrow.
We call this the inside out mantra. Executives who are passionate about what they do, not just the outcomes of their labor, tend to be happier and more successful in their entrepreneurial endeavors.
Your statement will ignite a domino reaction in neighbors and friends, who will partake in your experience and reasons for improving the environment. As more and more people take a stand against pollution, a positive difference in ourselves and our environment will occur.
You can start with small steps to going green in your office like switching from incandescent to LED bulbs. At first glance, getting LED bulbs costs more money. But when you look at the efficiency and durability of an LED, there really isn’t any cost comparison.
One LED bulb is equivalent to 21 incandescent bulbs. This means that over the course of 20 years you would spend $21 for one incandescent light fixture or $4 for an LED. Compound this with the cost of running major factories on such lighting stipulations, and the savings can be monumental.
Even though LED bulbs initially cost more, they pay for themselves in just several months. Getting an energy efficient light dramatically decreases how much you are spending every month for electricity.
If you want to make your move more drastically, states like Nevada have programs that can help. NV Energy’s commercial energy services offers technical assistance and cash incentives for energy efficient equipment and lighting products that save energy and lower utility bills. By running a simple test, NV Energy can show you how to save energy and money in your offices.
Take a look at your production process. How can you make them more environmentally friendly? If your company sources goods and services from other vendors, green procurement is a trend worth following. Choosing to work with companies that are less environmentally damaging than comparable alternatives is another way to walk the walk and show your customers you care. Commercial solar projects also bring an immediacy to the forefront of solar, putting it in its proper environmental light.
The biggest way to go green with your business is to install solar – and there are numerous benefits to boot. Going solar is not as expensive as one might think. The rise in competition within the solar sector has not only driven down solar panel prices, but has also improved the technology.
As referenced in this article, the 2017 Fraunhofer ISE Photovoltaics Report shows that panel efficiency is increasing. As time goes on, competition within this sector will continue to drive motivated individuals to create better engineered products to enhance solar panels’ energy potential.
There are also plenty of rebates available depending on the kind of business you operate. For example, if you are an agricultural producer or a small business in a rural area, you may qualify for The Rural Energy For America Program (REAP). REAP, at its inmost function, is a grant program. They have Renewable Energy System Grants which will cover between $2,500 and $500,00 of your costs depending on the size of your project.
As I mentioned earlier, the federal government has a solar incentive for anyone who would like to install solar panels allowing more people the ability to purchase these products. Although panel engineering and innovation are on the rise, therein reducing costs and reducing the amount of financial leveraging needed for the typical consumer to go solar in the state of Utah, loan-less solar is still a bit off in the future for the average consumer, but not necessarily for the average business.
This is given through a 30% tax credit. In this credit, 30% of your solar array is covered by the federal government.
After your system has been installed, you file for this tax credit, and it is then credited toward taxes that you would normally have owed. This credit can be rolled over for up to five years.
This credit may decrease for both residential and commercial systems to 26% in 2020, which is still a hefty incentive, and doesn’t negate the investment value proposition of solar energy. In 2021, residential and commercial solar system credits will decline to 22%, which is still a significant credit.
After 2021, residential solar customers will no longer receive a federal tax credit. Commercial solar installations will get a 10% tax credit moving forward in 2021 and after.
Many states offer their own tax credits on top of the federal one you will receive. Our company is based in Utah and Reno, Nevada, where the State tax credit works similarly to the federal credit. It also can be rolled over and is applied to taxes that would have been owed to the state.
I encourage you to review your brand, its purpose, and your bottom-line in considering the prospect of solar power. Review the steps you can start making to reduce your carbon footprint, go green and help the environment.
By Scott Cramer, President, Go Solar Group, a Utah Solar Company
