RETURN ON INVESTMENT (ROI)
FOR COMMERCIAL SOLAR WATER HEATING
With a 30% unlimited Federal Tax Credit and accelerated appreciation,
commercial operations greatly benefit from installing solar water heating.
This means that no matter what the cost of the system is, the Federal Government
will offer a 30% tax credit for a commercial solar system, whereas residential
solar systems have a limit up to $2000 for the tax credit. Furthermore, many states are offering incentives. With huge increases in energy costs, 4 to 5 times the power density of Solar Electric PV and the great need to stop pollution and global warming, there has never been a better time for a business to buy a Solar Water Heater!
As energy prices rise, SOLAR WATER HEATING will play an increasingly important role for commercial hot water users. A properly designed system will optimize system performance and return on investment (ROI). IT TRULY PAYS TO GO SOLAR: Typical returns are 12 to 30%.
Financial variables include: current and projected cost of fuel, tax credits, utility incentives, air quality management district (AQMD) incentives and/or offsets, municipal incentives, LEED points, funding points for low income and senior housing, carbon banking or cap/trade values, etc. Power purchase agreements (PPA) can be structured to include solar thermal alongside PV or other energy measures being considered.
Seasonal and annualized solar resource figures are well documented and widely available. For commercial hot water users with consistent year-round consumption, solar water heating can be an important business tool serving to stabilize rising energy costs while reducing demand on existing equipment. Environmental benefits may help further reduce system costs.
5840 Gibbons Dr. Suite H, Carmichael, CA 95608
Phone: (916) 481-7200 FAX: (916) 481-7203