In the solar sector, one among the fastest businesses is generating solar power through commercial solar panels in Orange County. With progressive rise in financing options and electricity rates, several and varying global businesses are coming in to invest in solar and that makes lot of sense for varying reasons.

1. Federal tax credit

A federal tax credit of thirty percent of the buying price can be enjoyed till 2020. This actually means that so long as you pay your federal taxes, you could qualify for the thirty percent credit. You could even roll the credit over for as much as five years if it happens that you cannot enjoy the benefit in the first year. For instance, if your system cost $100,000, then you are qualified for $30,000 as federal tax credit, this decreases your cost to $70,000.

2. Immediate utility savings

Saving our planet is certainly great, but let’s be realistic - you are an entrepreneur and if it isn’t saving you any money, then why do it? An excellent solar contract must at least be equal to or lower than your electricity bill together with a short payback; unless important work like roofing or other electrical tasks that are outside solar need to be done.

3. Accelerated depreciation

Businesses can take a depreciation of up to five years over the cost of their commercial solar in Los Angeles. This advantage is given under the ‘MACRS’ act, enabling MARCS to decrease your tax liability through the initial five years in which your system is installed.

4. ROI/payback period

Payback period also happens to be truly crucial and is among the biggest metrics you need to look at when determining whether you should switch over to solar or not. Your investment capital is certainly precious, and you always need to weigh opportunity cost into the equation. Is it project A or project B that you should invest in? Solar can save you lots of cash with seventeen percent being the average yearly ROI. But if there’s anything you can invest such money into to get a higher rate, then that’s exactly what you should ultimately do. To understand whether you are being given an excellent and fair deal, you should be able to recoup your investment within just five years or even less. Any payback period that’s higher than five years should surely raise a red flag.

5. Rate lock

One among the best benefits that individuals undervalue is the truth that you will be locking your rate in. In most instances, your payment is fixed, which is essential to projecting cash flow and costs. Having unpredictable rates can be daunting regarding cash flow and cost projections. Knowing you have a locked in payment for a certain time period is a huge benefit. You know that solar prices might rise, so even if you pay what you presently pay or lower, it still makes lots of sense.

As outlined here, opting for commercial solar panels in Los Angeles for solar power features clear financial and other benefits. Experts are always ready to provide you with additional information and resources to help your decision.