Well, it is not that hidden! You may not see your rooftop often, but it can make and save you money. It is a wide open field, ripe for the harvest! Now is the time to go solar.
As a former investment professional I understand the importance of knowing your customer, asset allocation, diversification, inflation hedges, safety, liquidity, ROI and taxed advantage income. As a #solar industry professional, I am here to say that C&I solar is a damn good long term investment. It can look and behave like fixed income, providing a predictable income(savings) stream.
Solar PV delivers a series of knowns:
More Reasons to Own Your Energy!
State of the Bond Market: Currently the 30 year US treasury is yielding around 3%. The 10 year is yielding 2.5%. The 30 ROI on a small commercial solar investment can exceed 15%. A simple example would be a 100kW solar installation costing $200,000, having a net cost of $100,000. The energy savings on this investment could be around $15,000 in the first year (depending on geography and rate structures). At 3% inflation, the savings increase year after year.
Tax Incentives: Solar offers a 30% federal dollar for dollar tax credit. Commercial Solar can also utilize bonus accelerated depreciation which can mean as much as 26% of installation cost depreciated in year 1. These tax incentives are more attractive than a tax free bond that is backed by a municipality. Rising interest rates drive the value of bonds downward. Higher inflation would mean greater savings to solar technology system owners.
Inflation Hedge: What are businesses and investors doing right now to hedge against inflation? You can buy more stocks and real estate and hope it goes up in value more than inflation. Investing in real assets such as oil and gas production may offer a hedge, however, we are in the midst of a fossil fuel divestment movement. Master Limited Partnerships and Oil & Gas investments have been under performers, with additional downside risk due to peak energy demand, climate change and competition from renewables. Solar offers the Ultimate Hedge.
Safety: Do you trust the big banks, the equity markets, Big Oil and Commercial RE values? Can you maintain the liquidity and credits necessary to ride the volatility of these markets? Do you believe in the consistency of sunshine? As Edison once said, “I hope we don’t run out of fossil fuels before we transition to solar, I’d put my money on the Sun!”
Solar is a Smart Business Decision! Contact Distributive Solar to learn how your company can benefit from a solar technology investment.
by Erik Melang; Co-Founder at Distributive Solar
About Distributive Solar
Commercial and Industrial SolarDistributive Solar delivers your organization access to the premier solar installers and best price for a commercial solar technology system. We provide your Commercial or Industrial Enterprise with the experience, expertise and resources necessary to make an informed decision on the merits of going solar.