10 Reasons Dealers Need Solar Now!

As the industry begins to look forward to life after COVID, Chip Shortages and the return to "Business As Usual" it is time to chart future plans for success. Most dealers have realized some record profits throughout the chip shortage and the smart forward-thinkers in the group realize that when inventory levels return the "Race to the Bottom" on pricing and profits will most certainly follow.

Unfortunately the we have also seen huge price hikes on fuel, transportation, utilities, supplies and especially labor. Unfortunately we have set the bar with these expenses and they will probably continue to rise moving forward.

As progressive dealer are looking into the future and wondering where the additional money will come from, may I suggest solar... Here are some reasons why solar power makes sense right now.

1. Tax Credits. Check with your accountant but in most cases these credits can be used now to help offset the expense.
2. Depreciation. As a capital improvement the solar panels can be depreciated like equipment.
3. Control the expense. Do you think your electric bill is going down in the coming years? As you add more space, equipment and charging stations your consumption will increase. Should you finance a solar project it is a great way to control this expense.
4. Spend it now. If your dealership made huge profits that usually means a huge tax burden. There is still time to get this project underway and get credit for it this year.
5. Save millions over time. The average payback for most dealers is 6-8 years for solar. The life expectance of your solar array is 40 years. How much money are we looking at over 32-34 years?
6. Align with the factory. At some point the manufacturers will probably push dealer to do exactly this and it will probably be more expensive when they are involved. Think about the spend on signage, special tools etc.
7. Why buy here... This is a tremendous story to tell your customers and will certainly be a deciding factor form some consumers. Imagine the discussions you could have with consumers about how much your dealership has positively impacted the environment.
8. Your facility is built for this. In most cases the dealerships I work with have flat roofs and solar panels can be positioned to provide the max return and do not disrupt the look and architecture of the building.
9. Be one of the first. Dealers like The Luther Auto Group and JM Lexus made this move years ago and have not regretted it. This is really not a question of if you will do it but when. Will there ever be a better time?
10. Limit the disruption. Right now with chip shortages crews will have better access and there will be less disruption to business. Less vehicles on the lot means more space to work.