Solar Tax Incentives for Car Washes
The cost of electricity is one of a car wash's largest overhead expenses, and it increases every year. However, with available tax incentives, there is a solution that can lower a car wash's operating costs and save them thousands on their taxes.
The Solar Solution
With an expensive monthly energy bill, Classic Car Wash decided it was time to consider solar. By generating at least a portion of their own power, Classic Car Wash could cut its overhead energy costs by over 30%. In addition, tax incentives allowed Classic Car Wash to reduce their tax bill by thousands of dollars, which was a big win for their business!
Solar's Lifespan
By choosing Simpleray as their solar provider, the panels installed were some of the highest quality in the industry, with an estimated lifespan (and savings) of over 40 years.
Array Information
Simpleray engineers designed an affordable, but effective, system for Classic Car Wash. This 26.9 KW Array uses 78 solar panels to produce 32,549 kilowatt hours every year. The environmental effect? Classic Car Wash’s array does the work of 19 acres of trees or eliminates the need to burn twelve tons of coal every year.
The Savings
While at the beginning solar may seem like an expensive investment, financial incentives exist that make it an easy choice for businesses. For example, a federal tax credit that reduces Classic Car Wash’s tax bill by 30% of their system cost. That effectively reduces the cost of any solar array by almost a third. Classic Car Wash ended up saving over $40,000 in tax benefits!
Payback Period
The estimated payback period for Classic Car Wash’s system is just under three years. With a module warranty of twenty-five years, and a lifespan closer to forty, that’s decades of free power. If Classic Car Wash had not gone solar, with increasing energy costs, it would cost them $166,000 over a twenty-five year period. That’s money that can now go back to the business!
