The Case for Commercial Solar, Right Now
While our immediate priority is helping clients safe-harbor the 40% Federal Solar Tax Credit before it expires in July, we also want to highlight an often-overlooked factor: the financial impact of maintaining the status quo with your utility.
Utility rates continue to rise at a pace that is outstripping most operating budgets. In California, commercial electricity prices have increased approximately 217% since 2001—and nearly 100% since 2020 alone!
If this trend continues at roughly 9%, an annual utility bill of $120,000 today will grow to approximately $280,000 within the next 10 years.
Recent filings indicate this pressure is unlikely to ease. Public reports show Southern California Edison is seeking an additional rate increase of approximately 10% to offset wildfire-related infrastructure costs adding further strain to business operating expenses.
This is why many organizations are choosing to invest in on-site solar generation. Rather than continuing to send capital to the utility, solar allows businesses to redirect those dollars into their own energy infrastructure, gaining long-term cost stability and predictable budgeting.
Based on conservative assumptions of just a 4% annual utility escalation, a solar investment could save an organization with these types of bills approximately $3,700,000 over 25 years.