Eight Benefits of Going Solar

Investing in solar panels for your business can be one of the most cost-savings decisions you make. Panels produce free electricity from the sun and therefore directly lower monthly utility bills, serving as one of the most immediate ways a business can lower its operating costs. Depending on the size of the system, a business can generate all its electricity needs from solar alone. Surplus energy produced can be “sold” back to the grid and used as credits for future energy bills, through Northwestern Energy’s net metering program. Excess energy produced during sunny summer months can be utilized to pay utility bills during winter months when systems aren’t generating as much from the sun.

U.S. businesses qualify for a 30% investment tax credit (ITC) under Section 48E for projects completed and placed in service by December 31, 2027. This tax credit allows businesses to deduct 30% of their solar installation cost from their federal taxes. This can help offset upfront costs and rapidly increase the time for return on investment. If a business can’t utilize their full ITC in a given tax year, the credits can rollover and be used in future years for up to 22 years. More info on how the ITC works here. [add nonprofit info - get a check back from the IRS though the process can be onerous]

Generating on-site power offsets a business’s energy consumption from HVAC, lighting, IT and machinery operations, and can be especially impactful for energy-intensive businesses. Rooftop solar can even help lower a building’s heat absorption through its roof-shading abilities, providing a cooling effect and thus further lowering energy needs during sunny days. With the technology we have today, solar panels require minimal maintenance and serve as a “set it and forget it” money-saving tool for your business.

Solar is not an expense, it is a revenue-generating asset. Most commercial projects see an average payback period of roughly 3-7 years, depending on system size, location and incentive/financing option utilized. On average, commercial solar projects can cover anywhere from 50-90% of a business’s monthly electricity usage. With the 30% Federal Investment Tax Credit (ITC) and other incentives/grants, net metering bill credits, ability to break even in as little as 3 years, and ability to start generating free electricity immediately, the net positive cash value can be seen quickly for businesses. The added property value and 10-year property tax exemption are additional cherries on top. 

See the below “What is the Return on Investment (ROI) for solar?” section for more information on example system sizes and average payback periods to learn more. 

The real cost to your pocket is the rising cost of electricity. Northwestern Energy’s electricity prices per kWh increased 28% for small commercial customers since 2022 (and 40% since 2015), and are only predicted to go up with the growing demand for electricity in Montana. The massive prospective load growth from AI and data centers are only adding to that demand. Solar empowers businesses to act as their own electricity generator and avoid price hikes and unpredictable rate fluctuations. 

In 2015, average commercial rates were 9-10 cents per kWh and have increased to 12.9 cents per kWh in September 2026. It is only a matter of time before rates spike again. 

If you are a business owner who receives peak demand charges, you may be wondering “how can solar help”? Since solar produces daytime energy onsite, it can help flatten the curve for energy demand, thus decreasing peak demand charges. Pairing batteries and energy storage systems with solar can help with peak shaving by offsetting these costs even further. These technologies can store solar power generated during the day to use later in the day/evening when utility pricing spikes during peak demand hours.  

How do you know if your business is subject to peak demand charges? In Montana as a customer of Northwestern Energy, this charge applies to General Service (GSEDS-1) businesses whose peak demand reaches 20 kW or more or whose monthly consumption exceeds 3,500-5,000 kWh. This means you are demand metered. However, If you are a smaller business with a non-demand meter, you are charged a higher variable base energy rate per kWh, which means you can also greatly benefit from the free electricity generation of solar.

Perhaps the most important benefit of all: cut carbon emissions by directly reducing your use of fossil fuels & run your operations on clean, renewable energy. Your business is part of helping Missoula reach our climate and clean energy goals - especially our 100% clean electricity by 2030 goal! Plus, acting on your values often leads to more employee and customer satisfaction!

Solar is not only better for the planet, it is better for your brand image. For companies looking to boost their sustainability or ESG profile, going solar showcases a real commitment that you’re living your values. Since businesses that are seen as environmentally responsible attract eco-conscious customers, it can enhance your brand image and grow customer loyalty, 

Solar also supports the local economy and supports local jobs.

Montana is no stranger to extreme weather, and wind storms, cold snaps and heat waves have only been intensifying in severity and frequency in recent years. Solar offers security through electricity independence. When combined with battery storage, solar panels provide generator-like backup power during a grid failure, allowing for uninterrupted operations. Additionally, being your own utility offers the autonomy and stability of producing your own free power, as opposed to being at the mercy of seasonal or annual price hikes. 

Commercial buildings with solar have proven to show up to 10% increase in property value, with an average 3-6% increase. The connection between solar and property value lies in the fact commercial real estate value is driven by the income it can generate. Solar functions as a revenue-generating and cost-reducing capital asset on a balance sheet by transforming a recurring utility expense into a fixed-value producing piece of equipment. How exactly does solar do this?  

1. Solar increases Net Operating Income (NOI): Because solar directly lowers energy bills, it directly lowers operating expenses. When operating expenses go down, NOI goes up. Therefore, when a business’s property has lower operating costs and a greater income, investors view the property as more valuable. 
2. Solar Increases Assets: Solar is a revenue-generating asset. Appreciation directly adds to your real estate portfolio’s value

Additionally, they appeal to eco-conscious tenants and buyers due to their attractive ability to offer reliable, low-cost energy that lowers operating expenses for any business.