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Solar has become one of the most popular additions to the roofing industry, allowing property owners to protect their wallets and the environment simultaneously by investing in an alternative form of energy.
Solar systems are made of thin photovoltaic sheets that lie on or replace existing shingles on a roof. The sheets absorb sunlight and convert it into electricity, allowing business property owners to save on electric bills.
Demand for rooftop solar has grown in Indiana due to rising energy costs. Recently, Northern Indiana Public Service Co. asked the state’s utility regulatory commission to authorize a 16.5% energy-rate-increase spread over two years. The request comes after multiple rate hikes by Indiana’s other utility companies in 2022, according to AARP.
Installing solar saves money, protects businesses from rising electricity rates and is a sustainable solution because it reduces business owners’ carbon footprint. Field experts offer a range of solar services, including system installations for commercial properties, detach-and-reset maintenance procedures, panel cleaning and more.
Using solar energy can reduce a business’s overhead and increase profit. By producing their own electricity through the installation of a solar system, businesses can negate the often-expensive cost of a monthly electric bill.
There are also two federal tax credits available for businesses that purchase solar energy systems, according to the Office of Energy Efficiency and Renewable Energy.
An investment tax credit reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year. A production tax credit is a per-kilowatt-hour credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces a business’s federal income tax liability and is adjusted annually for inflation.
Solar systems placed in service in 2022 or later and those that begin construction before 2033 are eligible for a 30% investment tax credit or a 2.75 cent per-kilowatt-hour production tax credit. And if a business chooses to use domestically sourced goods for a roofing project on its property, it might be eligible to receive additional tax credits.
Solar energy is one of the least-carbon-intensive sources of electricity generation, according to a United Nations report. It helps minimize the use of fossil fuels and can reduce the overall impact on the environment.
When consumers use solar power, they’re using a clean and renewable energy source that produces a smaller carbon footprint than do fossil fuels. This limits greenhouse gas emissions and makes a business more sustainable.
The use of solar has evolved and improved to increase efficiency. The density of the cells in a solar roof has grown, allowing solar panels to convert more electricity from the amount of sunlight received. Because of this, fewer panels need to be installed, and more power is easily generated.
The U.S. Department of Solar Energy has also attempted to make solar roofs more affordable by pledging to cut costs 60% within 10 years. The DOE has funded $128 million toward lowering those costs and improving solar-energy technologies.
Additionally, there is demand for re-roof jobs where solar panels are already installed, as there is significant skill involved in removing the existing solar panels and reinstalling after putting on a new roof. This is also known as a detach-and-reset procedure, which ensures solar investments will last longer.
It’s important for property owners to consider the warranty on their roof during a detach-and-reset procedure, as not all contractors are certified to retain the shingle warranty and the solar warranty during this process.
We expect the demand for solar to continue to rise, as it is eco-friendly and cost-effective and allows real estate owners to achieve more energy independence.
Looking ahead, the cost of utilities will likely decrease as new solar technology is introduced, making it a more affordable and accessible option for businesses looking to invest in solar.
Solar manufacturers will look for revolutionary ways to allow solar to be more cost-competitive while maintaining customers’ return on investment in their property and in taking control of their energy usage.•
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Haag is the director at Bone Dry Solar, part of the Bone Dry Roofing family of companies.
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