How Auto Dealerships Save with Solar Energy
Solar energy for car dealerships offers advantages due to high energy costs and ideal rooftop space for solar arrays. With growing electric vehicle (EV) fleets and rising operational expenses, solar savings for auto dealers can significantly reduce costs and increase brand appeal.
High Energy Costs Meet Big Savings
Reducing dealership energy costs is essential, as dealerships consume 18% more energy than typical office buildings, costing dealerships up to $2 billion annually. With ample flat rooftop space, dealerships can offset these expenses through solar, reducing electricity costs and achieving ROI within a few years.
Incentives and Financial Options
Solar-friendly tax incentives and financing make the investment easier. The federal Inflation Reduction Act (IRA) offers a 30% tax credit, while programs like the Modified Accelerated Cost Recovery System (MACRS) and C-PACE help dealerships reduce costs and finance solar projects.
Enhanced Brand Image
Consumers are drawn to businesses with shared values, and installing solar shows customers a commitment to sustainability. For example, Boulder Nissan, experienced a brand boost after Independent Power added solar panels to the roof of its facility. Ted Christiano, the general manager, noted, “Customers are choosing us over the competitors because we are demonstrating our concern for the community and environment by going solar.” Besides the increase in customer traffic, Boulder Nissan saw a 20% reduction in energy costs and are able to charge their ever-growing fleet of EV’s with solar power.
SOLAR CARPORTS: Dual Benefits
Solar carports protect valuable vehicle inventories from hail and debris, all while generating solar energy. Although they can be more costly upfront, tax credits also apply, making them ideal for dealerships in high-risk hail regions.
The asset protection value of solar carports is why they are gaining traction as an effective AND economical strategy for hail mitigation. In 2019, requests for solar carport designs and quotes increased by nearly 400%. This is top-of-mind for auto dealers in the Colorado Front Range, which receives the highest frequency of large hail in North America.
SPOTLIGHT: WELD COUNTY GARAGE
The Weld County Garage Buick GMC is a new and used car dealer in Greeley, Colorado. The dealer has a long history in the area and was the first Buick dealership west of the Mississippi. Weld County Garage has always been on the lookout for ways to improve operational efficiency and to stay relevant in its community.
In 2019, Independent Power installed a 438-kW rooftop system, covering 80% of Weld County Garage’s electricity needs and cutting peak energy demand by 20%. “Solar just made good business sense,” says Grant Nisly, General Sales Manager. “One of my roles is to drive high ROI projects that offer long-term benefits to the ownership group and solar just made good business sense. Though I personally have a passion for efficiency, the decision to go solar wasn’t environmental. It was purely financial.”
Become An Auto Dealer Leader
With energy costs rising and tax incentives still high, there has never been a better time for auto dealerships to invest in solar energy. Solar can drive down operating expenses, support EV fleet charging, and enhance your dealership’s image—benefiting both your bottom line and your brand.
