Solar for Business

Businesses of all sizes can reduce overhead, protect against inflation, and take advantage of multiple incentives by switching to solar power.

Commercial Solar Installation

As a smart business owner, you know that keeping your operating costs as low as possible is crucial for success. This gets harder every year with inflation and increasing energy rates. Installing a commercial solar panel system adds protection against rising overhead by providing a fixed energy rate for years to come. A well designed and installed solar system will lower your energy bills, increase your business's overall sustainability, and protect against inflation.

A person stands in the background while two gloved hands screwing a mounted solar panel end. One hand holds a yellow handled screwdriver while another holds the solar panel.

Custom solar system designs for Business

We offer customized commercial solar solutions designed for Iowa businesses and agricultural operations. We tailor our recommendations to meet your business or farm’s energy requirements to make sure you get the best return on investment possible.

Smooth and Cost-Effective Process

Our experienced team guides you through the entire solar system design and installation process - planning to installation - so you don’t have to worry about wasting your precious time on another project. We know what it’s like to run a business, and we make sure things go as smoothly and cost-effectively as possible.

Cost Benefits of Solar

  • Commercial electricity rates in Iowa are over 11¢/kWh on average. If your business is using 200,000 kWh a year, you’re paying $22,000 a year for electricity.

    A well planned solar panel installation can reduce the cost by significant margins. The savings on your electric bill could be slashed by $22,000 if your farm or business installed a solar panel system capable of generating 200,000 kWh annually.

    It’s no surprise that businesses are installing solar panel systems at an incredible rate

  • The example above is an obviously simplified example of how much a business can save money on their electricity costs. Data driven decisions are crucial to business success, and we help parse through the information to uncover what your actual savings potential and time to return on investment are.

    As a general rule you can use this formula to calculate your savings over a given period: Savings = (Electricity Costs for given period) * (% of Electricity Offset by the Solar System) - (Upfront Cost).

    This basic formula doesn’t account for increasing electricity rates coming from the grid or the time value of money, so actual savings over time can be even greater.

Business Incentives for Solar Energy

There are incentives provided by federal, state, and local institutions to offset the cost of commercial solar panel installation and maximize your return on investment.

The examples provided below are far from exhaustive, and a competent commercial solar installer will help you navigate what your business qualifies for.

At Stateside Solar Energy, we’re motivated to get our customers the most out of their solar investment.

Tax Incentives

  • The ITC is a federal tax credit that can significantly reduce the upfront cost of your commercial solar installation. It provides a tax credit equal to a percentage of the solar system installation cost, reducing your federal income tax liability.

    Currently, the baseline credit is equal to 30% of the solar installation cost. There are additional bonus credits available if your solar project is in an energy community or low income community.

    It’s possible that the credit rate could fall in upcoming years, leading many to schedule their commercial solar installations as soon as they can to capture the opportunity.

  • In addition to the Federal Investment Tax Credit (FITC), businesses can lower their tax liability through depreciation.

    The IRS allows for a depreciation method called Modified Accelerated Cost Recovery System (MACRS) for solar energy systems.

    For 2024, businesses can also benefit from a 60% bonus depreciation in the first year, followed by the remaining depreciation over the next five years as per the MACRS schedule. The bonus depreciation rate will drop 20% every year until 2027 when it will be phased out.

The Rural Energy for America Program (REAP)

The U.S. Department of Agriculture (USDA) has an initiative designed to help agricultural producers and rural small businesses lower their energy and solar installation costs. Through REAP, agricultural operations can get guaranteed loan financing and grant funding for the installation of solar panels. These funds can significantly offset the upfront costs of a solar installation, making it more accessible for agricultural producers and rural small businesses to make the switch to solar electric and reduce their input costs.

  • REAP provides grant funding of up to 50% of the total solar installation project cost. The maximum grant can be up to $1 million for renewable energy systems. Our team helps navigate the application process to make things as simple as possible. Qualifying applicants can also combine the grant funding with Federal Investment Tax Credit and decrease installation costs further.

  • REAP also offers guaranteed loan financing for up to 75% of the total project cost, making it easier for agricultural operations and rural businesses to secure financing for solar installations. If combining grant and loan funding, up to 75% of the project cost can be covered. Interest rates and terms vary, and we’re here to help you navigate.

Small businesses in rural areas, farms, agricultural production organizations are eligible. Click below, answer a few questions, and we can see if you qualify.

Use Cases for Commercial Solar in Iowa

  • Service businesses can reduce their energy costs for lighting, kitchen equipment, refrigeration, store displays, and HVAC with the electricity generated from solar panels.

    Carport-mounted arrays can also provide shade for customer parking.

  • These high energy consumption facilities stand to save countless dollars on their electricity overhead in order to power machinery and equipment.

    Long-term, stable, and forecastable energy costs helps organizations protect themselves from inflation.

  • Commercial buildings can lower energy costs for lighting, heating, cooling, and office equipment. Carport-mounted solar arrays can also provide favorable conditions for fleet and employee parking.

  • Energy usage is one of the biggest operating costs for facilities with servers, switches, data storage, crypto mining operations, and other IT equipment. A reliable and sustainable power source is crucial to keep things working and secure. A solar + battery system can be game changers to keep facilities online even during blackouts.

  • Processing facilities, co-ops, farms, hog confinements, and feedlots can find energy independence by installing solar panels. Lower operating costs and protection against inflating electricity rates are impossible to ignore.

    Many agriculture operations qualify for grants and guaranteed loans from the USDA’s REAP program.

Types of Commercial Solar Systems

Roof Mounted Systems

These systems are often used on large commercial buildings with ample roof space. We consider a number of factors when determining the viability of roof-mounted solar systems - the age of the roof, geographical location, shading from nearby buildings and vegetation, weather patterns, the roof’s slope, and local building codes and safety requirements.

Ground mounted Systems

These systems are great for farms and businesses with ample ground space or specific site requirements. Ground-mounted systems can be larger and more flexible in terms of layout. They can sometimes produce more energy than roof-mounted systems, because they can be tilted at an optimal angle to capture the maximum amount of sun.

Carport-mounted systems

Elevated structures that hold solar panels above the ground allow for shaded conditions underneath. This is often used in parking areas so vehicles can stay cooler and out of the elements. These systems can provide both energy benefits and practical advantages for employees and customers.

Net Metering

Net metering is a policy that allows businesses with solar panels to send excess electricity back to the grid for credits. If your solar system generates more electricity than your business needs at a given time, your local utility will credit your account for that unused electricity.

Credits generated by excess energy generated from solar panels can be used to power your operation at night when your solar panels aren’t creating electricity. Each utility company has their own policies regarding net metering rates, but it is common to receive credits equivalent to the retail rate. ($1000 of energy sent back to the grid = $1000 in credits) Additionally, some utility companies allow you to cash out any unused credits annually.

Commercial Solar Installers

For when you’re ready to make a smart investment in your business.

Drone shot of a field and a white barn with an American flag painted on its side. Looks to be a clear fall evening in Iowa.

Commercial solar panel installation is a smart investment that can provide significant benefits for your business. By harnessing the power of the sun, you can reduce your energy costs, improve your business’s sustainability, and enhance your bottom line.

Contact us today to learn more about how commercial solar can benefit your business.