BUSINESS ADVANTAGES OF SOLAR THERMAL SYSTEMS
A solar thermal system is a smart investment for businesses, large and small. Whether you manage a large hotel chain or own a local winery, a commercial solar thermal installation will provide many advantages including:
Significant Utility Savings
Companies throughout the U.S. are seeing advantages in renewable energy technologies - not just because it is beneficial to the environment, but because it good for the bottom line too.
Business owners and facility managers are continually under pressure to reduce operating costs and boost the bottom line. According to the US Department of Energy , more than 20% of business energy costs could be cut by investing in renewable solar thermal technology.
The commercial cost of a therm of natural gas has risen from $0.72 in 1980 to $1.12 in 2009 – an increase of 56%. As energy rates continue to rise, companies are looking to solar thermal systems as the solution to hedge against rising energy costs.
By tapping into the renewable power of the sun to heat water, businesses can significantly reduce operating costs and add to the bottom line. The energy savings potential is even greater for businesses that use an abundance of hot water such as: restaurants, hotels, universities, wineries, breweries, casinos, and amusement parks. Estimated Solar Thermal Savings for a Small Hotel
| Annual Hot Water Usage Per Room |
19,000 gallons |
| Number of Rooms |
100 |
| Average Occupancy Rate |
70% |
| Annual Hot Water Usage |
1.36 million gallons |
| Commercial Cost per Therm |
$1.12 |
| Annual Cost to Heat Water with Gas |
$13,000 |
| Annual Solar Thermal Savings |
$7,800 |
Corporate Tax Benefits
Today, federal and state government incentives are being implemented to encourage clean energy in a green business economy. Businesses investing in solar technologies can receive a 30% federal tax credit on installed solar thermal systems through the Business Energy Investment Tax Credit (ITC).
Alternatively, tax-paying entities can choose to take advantage of the 30% Renewable Energy Grant instead of the ITC. The renewable grant provides a cash refund rather than a tax credit.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in solar thermal systems through depreciation deductions over a five year period. The American Recovery and Reinvestment Act of 2009 extended a 50% bonus depreciation provision for qualifying systems.
Additionally, the Database of State Incentives for Sustainable and Renewables & Efficiency (DSIRE ) lists all of the incentives available to companies and individuals, state by state.
Increased Property Value
When a company installs solar thermal technology on its property, the value of the property will increase without affecting the property tax assessment. When the property undergoes a change in ownership, however, the active solar energy system becomes assessable along with everything else on the property.
Greener Corporate Image
The increasing complexity of the global business environment, rising energy costs, and swelling compliance challenges are driving a major focus on green initiatives for many companies. Green organizations cite corporate social responsibility and a competitive advantage as the main drivers for their green initiatives.
Regardless of the motivation behind a decision to install a solar thermal system, a clear advantage lies in the environmental benefits. For example, a solar thermal system in a small hotel will eliminate 42 metric tons of carbon dioxide emissions each year. The US Environmental Protection Agency reports that this is equivalent to removing eight cars from the road each year or planting more than a thousand seedling trees and letting them grow for ten years.
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