Why Businesses Should Invest in Solar in North Carolina?

• North Carolina ranks 4th in the nation for solar power capacity, with abundant sunshine and strong incentives
• Investing in solar can significantly reduce a business’s electricity costs and provide a great return on investment
• Solar panels increase property value, provide tax benefits, and demonstrate a commitment to sustainability
• Many financing options are available to make going solar affordable for businesses of all sizes

Main Benefits

Lower Electricity Costs

One of the primary benefits of installing solar panels for businesses in North Carolina is the significant reduction in monthly electricity bills. Solar energy is much cheaper than traditional electricity from the grid, allowing businesses to drastically cut their energy costs by generating their own free electricity from the sun.

Excellent Return on Investment

While solar does have upfront costs, businesses see a quick payback period of 3-5 years on average and substantial long-term savings that make it a smart financial investment. Solar panels last 25-30 years, providing decades of nearly-free electricity after the initial investment is paid off. Businesses can also take advantage of the 30% federal tax credit, accelerated depreciation, and other incentives to greatly reduce the net cost of going solar.

Increased Property Value

Installing solar panels is a property improvement that makes commercial buildings more valuable for resale. Solar is an in-demand feature that can increase a property’s value by an estimated 17% on average. It’s viewed as an upgrade similar to a renovated office space or new roof.

Improved Sustainability and Brand Image

Adopting solar showcases a business’s commitment to sustainability and reducing its carbon footprint, which can improve public perception and attract environmentally-conscious customers. Visible solar panels powerfully communicate a company’s eco-friendly practices and values. With consumers increasingly preferring sustainable businesses, solar helps create a positive brand image.

Energy Independence and Resilience

Solar provides businesses with a reliable, independent energy source that reduces reliance on the grid and insulates against power outages, price fluctuations, and rising electricity rates. With battery storage, solar can provide uninterrupted power even during grid failures.

Accessible Financing Options

With many financing options like loans, leases, and power purchase agreements (PPAs), most businesses can afford to go solar with little to no upfront cost. Incentives like the federal tax credit, accelerated depreciation, USDA REAP grants, and utility rebates also help offset the cost.

How can businesses in North Carolina finance the cost of solar panel installation?

There are several financing options available to help North Carolina businesses afford the upfront cost of installing solar panels:

• Solar loans allow businesses to finance 100% of the solar system cost with no money down. Monthly loan payments are often lower than the electric bill savings, resulting in immediate positive cash flow. Loan terms can range from short-term options like 18 months same-as-cash to longer terms up to 25 years.
• Power purchase agreements (PPAs) enable businesses to install solar with little to no upfront cost. With a PPA, a third-party developer owns and maintains the solar system, and the business agrees to purchase the electricity generated at a fixed rate, typically lower than utility rates. This allows businesses to benefit from solar savings without the responsibilities of ownership.
• Property Assessed Clean Energy (PACE) financing allows businesses to fund solar projects through a voluntary property tax assessment. Repayment is made through the business’s property tax bill over a term of up to 20 years. PACE financing can cover 100% of project costs with low interest rates and no money down.
• The USDA Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems. REAP can finance up to 75% of total project costs.

Many solar installers partner with banks and credit unions to offer affordable solar financing options tailored for businesses. Exploring multiple offers can help secure favorable terms.

What are the tax credits and rebates available for businesses in North Carolina that install solar panels?

North Carolina businesses can take advantage of several lucrative incentives to reduce the cost of going solar:

• The federal solar investment tax credit (ITC) allows businesses to deduct 30% of the cost of installing a solar system from their federal taxes. There is no cap on the size of the solar system that can be claimed.
• Accelerated depreciation allows businesses to deduct 85% of the solar system value from their taxes in year one, with the remaining 15% depreciated over the next five years. Combined with the ITC, this can offset 50-60% of the solar installation cost.
• Duke Energy’s Solar Rebate Program offers upfront rebates of $0.50/watt for nonresidential solar projects up to 100 kW, with a maximum rebate of $50,000. Nonprofit organizations can receive a higher $0.75/watt rebate up to $75,000.
• North Carolina exempts 80% of the appraised value of a commercial solar system from property taxes.
• Many cities and counties offer additional incentives like grants, rebates, and permit fee waivers to encourage local businesses to adopt solar.

How can businesses in North Carolina get started with solar power?

To get started with a commercial solar project in North Carolina, businesses should follow these key steps:

1. Assess the property’s solar potential, considering factors like roof space, shading, orientation, and energy usage. Many solar installers offer free site assessments.
2. Obtain quotes from reputable commercial solar installers to compare equipment, financing options, and pricing. Look for experienced installers with NABCEP certification and a strong track record
3. Secure financing through solar loans, PPAs, PACE, grants, or cash purchase. Evaluate the short and long-term costs, benefits, and risks of each option.
4. Apply for relevant incentives like the federal ITC, state rebates, and local programs. Many installers will handle the paperwork as part of their service.
5. Obtain necessary permits and utility interconnection approvals. Well-qualified installers can streamline this process.
6. Schedule the solar panel installation, which typically takes a few days to a week for commercial projects. The installer will handle system commissioning and inspections.
7. Flip the switch and start generating clean, affordable electricity from the sun. Monitor the system’s performance and maintain the equipment according to manufacturer guidelines and warranty terms.

What are some real-life examples of businesses in North Carolina that have successfully implemented solar power?

Many North Carolina businesses across diverse industries are reaping the rewards of going solar. Here are a few notable examples:

• Prestage Farms, a large pork and poultry producer, installed a 1.4 MW solar array at its feed mill in Edgecombe County. The system supplies over 50% of the mill’s electricity needs, saving an estimated $100,000 per year.

• Sierra Nevada Brewing Co.’s Mills River brewery features a 600 kW rooftop solar array and a 400 kW ground-mounted array, together producing about 20% of the facility’s electricity. The solar investment aligns with the company’s commitment to sustainable operations.
• North Carolina Mutual Life Insurance Company, the oldest African American-owned insurance company in the U.S., installed a 70 kW solar array on its headquarters in Durham. The system reduces energy costs and enhances the historic building’s value.
• Metcon Inc., a Pembroke-based construction company, powers its headquarters with a 71 kW solar array. The system saves over $10,000 per year in electricity costs and showcases Metcon’s solar installation services.[14]
• Many national retailers with stores in North Carolina, such as IKEA, Target, Walmart, and Kohl’s, have installed rooftop solar arrays as part of their corporate sustainability initiatives.

With abundant sunshine, a robust solar industry, and attractive incentives, there has never been a better time for businesses in the state to invest in a brighter, cleaner future with solar energy.

What are the eligibility requirements for North Carolina’s solar incentives and rebates for businesses?

To be eligible for North Carolina’s solar incentives and rebates, businesses must meet certain criteria:

1. The business must be located in North Carolina and be a Duke Energy customer.
2. The solar PV system must be installed on a business property and meet all applicable codes and standards.
3. The system must be grid-tied and comply with the utility’s interconnection requirements.
4. Businesses can install systems up to 1 MW in size and receive a rebate of $0.50/watt for systems up to 100 kW, with a maximum rebate of $50,000. Nonprofits can receive a higher $0.75/watt rebate up to $75,000.
5. Businesses must use certified solar installers and approved equipment to qualify for rebates and incentives.
6. To be eligible for the 30% federal tax credit, the solar PV system must be placed in service and operational in the tax year the credit is claimed.
7. For the 80% property tax abatement, the solar system must be used to generate electricity for the business and cannot be leased to a third party.

How can businesses in North Carolina apply for solar incentives and rebates?

The application process for solar incentives and rebates varies depending on the program, but generally involves the following steps:

1. Work with a certified solar installer to design and size the solar PV system based on the business’s energy needs and property characteristics.
2. Apply for interconnection with the utility company and obtain necessary permits from the city or county.
3. For the Duke Energy rebate, submit a solar Rebate application within 90 days of the solar PV system installation, including proof of purchase and interconnection.
4. To claim the 30% federal tax credit, complete IRS Form 3468 and file it with the business’s tax return for the year the solar system was placed in service.
5. For the 80% property tax abatement, apply with the North Carolina Department of Revenue, providing documentation of the solar system installation and use.
6. Work with the solar installer to gather all necessary documentation and assist with the incentive and rebate application process.

What are the long-term cost savings for businesses in North Carolina that install solar panels?

Businesses in North Carolina can realize significant long-term cost savings by installing solar panels:

1. Solar can offset a large portion of a business’s electricity costs, with savings of thousands of dollars per year depending on the system size and energy usage.
2. Businesses can expect to see a return on their solar investment in 3-5 years on average, with continued savings over the 25-30 year lifespan of the panels.
3. By reducing reliance on grid electricity, solar helps businesses lock in energy costs and avoid rising utility rates over time.
4. With net metering, businesses can sell excess solar electricity back to the grid for credits, further reducing energy bills.
5. The combination of the 30% federal tax credit, accelerated depreciation, Duke Energy rebate, and property tax abatement can reduce the upfront cost of going solar by 40-70%.
6. A business that installs a $200,000 solar system could see a first year savings of over $80,000 through incentives, plus an estimated $500,000 in electricity costs over 25 years.

By taking advantage of available incentives and rebates, businesses in North Carolina can significantly reduce the cost of installing solar panels and realize substantial long-term savings on energy expenses.

With a relatively short payback period and decades of free, clean electricity, solar is a smart investment for businesses looking to lower operating costs and demonstrate a commitment to sustainability.

Take the first step towards a brighter, more sustainable future. Request your free solar quote today and discover the power of clean energy for your business.