How to use savings from corporate tax changes to benefit your solar business

By Christy Howley, program manager at ProSight Specialty Insurance

Recently, Senate Republicans passed a $1.5 trillion tax bill that figures to have major implications for Americans at large. The corporate tax rate has been slashed from 35% to roughly 20%, either in 2018 or 2019, depending on which side of the legislative branch gets its way. With radical changes coming, here are some ways solar contractors can put that extra cash to use.

Invest in your employees

One of the best ways to use this newfound cash is to strengthen your workforce. After all, your employees power your operation as much as the panels.

Strengthening your workforce could mean making new hires or allocating funds for certification courses. Certifications in the solar field can be pricey, but they offer a solid return on investment. In the short-term they can help foster a safer workplace, but you may also see longer-term gains in lost time, reduced insurance costs and a higher quality. Overall, these programs will help to keep your operations running smoothly, boost client confidence and ultimately boost your bottom line.

For example, NABCEP PV Installation Professional certification can provide valuable training for installers, designers, project managers, foremen and supervisors. NABCEP certification indicates quality to potential customers. Certification can also mean smoother installations with fewer man-hours, wasted materials and headaches.

For employees who already have NABCEP certifications, it would make sense to send them to the NABCEP continuing education conference. The yearly conference offers insight into the industry’s latest technology and opportunities to connect and share ideas while giving installers a chance to reflect on their experience and work. This time away from the typical daily grind can inspire key employees when they get back to the field.

In addition to certifications, extra room in the budget can allow solar power companies to improve company culture by adding happy hours or corporate retreats, and keep top employees around and happy with monetary rewards.

Invest in technology

Drones aren’t just a great Christmas gift for your children, they can also aid in your company’s inspections. Using aerial infrared imaging, drones can identify harmful leaks by detecting moisture and provide quality control with unmatched efficiency. A drone, or a fleet of them, can be a valuable investment for a solar company as it bolsters initial inspections, as well as regularly scheduled maintenance checks.

Renewable energy companies would also do well to redirect their tax savings toward protecting company and customer data. In December, PayPal was forced to suspend its TIO Networks arm due to a data breach affecting up to 1.6 million customers. Meanwhile, the Detroit-area Henry Ford Health System announced that the health information of nearly 20,000 patients was compromised by hackers. Given the very real dangers of hacking, companies should consider allocating funds toward programs to protect information as well as signing up for data compromise coverage. The data you have may not feel important or delicate, but the clients entrusting companies with sensitive information see it differently.

Invest in safety

Keeping your data safe is second only to keeping your employees safe. As outlined by OSHA, installers must be mindful of hazards such as arc flashes, electric shock, falls and thermal burn hazards.

Hiring a risk manager/safety director or paying for safety courses can have a substantial impact on employees’ abilities to get the job done safely. Also, eliminating potential workplace hazards reduces risk, making your entire operation easier to insure and lowering your premiums.

The upcoming changes to the tax code will save corporations a pretty penny, but the real benefit will come to the companies that apply their savings effectively. By reinvesting the green that was previously allocated for Uncle Sam, you can make your operation bigger, stronger and more profitable.