Pub. 11 2021 Issue 3

16 AUTOMOBILE DEALER NEWS ILLINOIS illinoisdealers.com Y ou may have considered solar in the past, and for whatever reason – timing, costs, logistics, or even disinterest – it did not make sense for your dealership. It is time to look again. Solar is the future for car dealerships, and that is a fact we stand behind. Consider this: according to the NADA, auto dealerships use on average 18% more energy than typical office buildings. Lighting outdoor lots, running technology-enhanced showrooms, and powering service center equipment can accumulate quite a power draw. Dealerships as a whole spend almost $2 billion in annual electricity costs. So, it makes sense that several auto dealerships are going solar. Why Solar? Let us start with the basics. Benefits include: • Reduced operating costs thanks to thousands of dollars of savings on monthly electricity bills • Lower tax liability with the federal solar investment tax credit (ITC) • High internal rate of return on a long-term warranted asset • Hedge against rising energy costs • Marketing and PR opportunities related to sustainability efforts with a lower carbon footprint (even if saving the polar bears is not high on your list of priorities, it likely is for a sizable fraction of your buyers. Take the edge and use it wisely.) Why Solar for Auto Dealers? As mentioned above, auto dealerships use approximately 18% more energy than typical office buildings. Toss in the fact that electricity is one of the most significant cost factors for businesses and you’re looking at the potential for substantial savings for decades to come. In addition, for dealerships, energy is usually the third-highest overhead expense. To top that off, EV charging stations are on the horizon, and with them, unwelcome spikes in your energy use – and your electricity bill. More expense certainly, but not if you take action now and turn your roof into a viable profit center. Rooftop solar is quickly becoming the standard for commercial buildings whose owners opt for solar. Of course, large, f lat roofs are ideal, but what is appealing is being able to reduce your electricity bill while hedging against future energy costs and concurrently making a profit. The untapped savings from solar is equal to two to three more vehicles sold per month. Stretch that out across several decades, and, well, you get the idea. Some auto dealers see their hefty monthly electric bill as another fixed expense, but this does not have to be the standard. A solar power system helps drive down those energy costs by enabling more on-site energy production and, thus, optimizing a dealer’s bottom line. Solar installations are also an excellent way to boost a dealer’s brand. Customers want to patronize businesses that share the Solar Power May Play a Bigger Role for Dealers