Commercial Solar ROI: Demand Charges, ITC & MACRS Explained
Demand charge math
SCE commercial bills often include $/kW demand charges based on peak usage. Solar reduces energy charges immediately; batteries or load shifting attack demand peaks.
MACRS and ITC stack
30% ITC plus accelerated depreciation can yield 50%+ first-year tax benefits on profitable entities—model with your CPA.
PPA vs cash
PPAs trade tax benefits for zero upfront cost. Cash purchases maximize lifetime savings if capital is available.
Case study framework
Document baseline interval data, post-install demand profile, and true payback. See case studies and commercial solar OC.
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