Energy Efficiency & Tax Benefits of Commercial Metal Roofing

Commercial property owners face ongoing pressure to reduce operating costs while maintaining comfortable, functional buildings. Your roof plays a bigger role in both challenges than you might expect. The right roofing system cuts energy bills month after month while qualifying for tax benefits that reduce the after-tax cost of the investment.

Here’s what you need to know about metal roofing’s energy performance and the tax advantages available to Western North Carolina businesses in 2026.

How Metal Roofing Reduces Energy Costs

The Science of Cool Roof Technology

Standard dark asphalt roofs absorb 85-95% of solar radiation, reaching surface temperatures of 150-170°F on summer days. That heat transfers into your building, forcing HVAC systems to work harder to maintain comfortable temperatures.

Metal roofing with reflective coatings behaves differently. These cool roof systems reflect 60-85% of solar radiation rather than absorbing it. Surface temperatures stay 40-60 degrees cooler than comparable asphalt roofs, typically peaking at 110-130°F even on hot summer days.

That temperature difference translates directly to lower cooling costs. Less heat enters the building through the roof, so HVAC systems cycle less frequently and use less energy maintaining set points.

Real-World Energy Savings Data

We’ve tracked energy costs for commercial buildings before and after metal roofing installations across Western North Carolina. Here’s what the data shows:

Office Buildings (10,000-25,000 sq ft):

  • Pre-installation cooling costs: $8,000-15,000 annually
  • Post-installation cooling costs: $5,500-11,000 annually
  • Savings: 25-35% reduction in cooling expenses

Retail Centers (25,000-50,000 sq ft):

  • Pre-installation cooling costs: $18,000-35,000 annually
  • Post-installation cooling costs: $13,000-26,000 annually
  • Savings: 22-28% reduction in cooling expenses

Warehouses (50,000-100,000 sq ft):

  • Pre-installation cooling costs: $25,000-55,000 annually (if cooled)
  • Post-installation cooling costs: $18,000-40,000 annually
  • Savings: 25-30% reduction in cooling expenses

For unconditioned warehouses, metal roofing reduces interior temperatures by 8-12 degrees during summer months, improving working conditions without mechanical cooling costs.

ENERGY STAR Certification Benefits

Metal roofing systems can achieve ENERGY STAR certification when they meet minimum solar reflectance requirements. For steep-slope products (used on most commercial buildings), the minimum Solar Reflectance Index (SRI) is 25 initially and 16 after three years of weathering.

ENERGY STAR Benefits for Commercial Properties:

  • Qualification for utility rebate programs (varies by location)
  • Enhanced tax deduction opportunities (see Section 179D below)
  • Lower insurance premiums with some carriers
  • Marketing value for environmentally conscious tenants
  • Improved building certifications (LEED, etc.)

Most modern metal roofing systems with reflective coatings easily exceed ENERGY STAR requirements. Standard light colors (white, tan, light gray) achieve SRI values of 70-90, well above the 25 minimum.

Section 179D Commercial Building Energy Deduction

Section 179D allows building owners to deduct $1.88 per square foot for energy-efficient commercial building improvements that reduce energy costs by 25% or more compared to ASHRAE 90.1 standards.

How Section 179D Works for Roofing

The deduction applies to the entire building square footage, not just the roof area. If your 50,000 square foot building qualifies through roof and HVAC improvements, you can deduct $94,000 in the first year.

Qualification Requirements:

  • Building must achieve 25% energy cost reduction vs. baseline
  • Independent third-party certification required
  • Only applies to buildings placed in service after December 31, 2022
  • Property must be located in the United States

Most commercial metal roofing projects don’t qualify for the full deduction on their own. However, combining metal roofing installation with HVAC upgrades, insulation improvements, or lighting retrofits often reaches the 25% threshold.

Calculating Your Potential Deduction

A 25,000 square foot building qualifying for Section 179D:

  • Deduction: 25,000 sq ft × $1.88 = $47,000
  • Tax savings at 21% corporate rate: $9,870
  • Tax savings at 37% rate (pass-through entities): $17,390

The deduction reduces taxable income in the year the building is placed in service. For a $250,000 metal roofing project, this represents 4-7% of project cost recovered through first-year tax savings.

Important: Section 179D requires certification from qualified engineers. This adds $3,000-8,000 to project costs but the tax savings typically exceed certification fees several times over. We work with engineering firms who specialize in 179D certification and can coordinate this as part of your project.

Accelerated Depreciation Under Section 179

Section 179 allows businesses to deduct the full purchase price of qualifying equipment in the first year rather than depreciating over time. For 2026, the maximum deduction is $1,250,000 (indexed for inflation).

How Section 179 Applies to Roofing

Roofing generally qualifies as “building improvement property” which is eligible for accelerated depreciation. Instead of depreciating a $250,000 roof over 39 years ($6,410 annual deduction), you can deduct the full $250,000 in year one.

Qualification Requirements:

  • Business must purchase (not lease) the improvement
  • Improvement must be placed in service during the tax year
  • Business must have sufficient income to benefit from the deduction
  • Deduction cannot exceed business income for the year

Tax Impact Example:

$250,000 metal roofing project:

  • Traditional depreciation (year 1): $6,410 deduction = $1,346-2,372 tax savings
  • Section 179 (year 1): $250,000 deduction = $52,500-92,500 tax savings

The difference is significant. Section 179 accelerates tax savings rather than spreading them over decades, improving project cash flow and ROI.

Combining Section 179D and Section 179

You cannot “double dip” by claiming both deductions on the same improvement. However, if part of your project qualifies for 179D (energy-efficient portions) and part doesn’t, you might use 179D for qualifying portions and 179 for the remainder.

Work with your tax advisor to optimize deduction strategies. The right approach depends on your specific tax situation, income levels, and other deductions you’re claiming.

State and Local Tax Incentives

North Carolina Property Tax Considerations

North Carolina assesses property tax on building improvements including roofing. However, energy-efficient improvements may qualify for temporary property tax exclusions in some counties.

Buncombe County: No specific energy improvement exemptions Henderson County: No specific energy improvement exemptions Transylvania County: No specific energy improvement exemptions

While Western North Carolina counties don’t currently offer roofing-specific property tax breaks, state law allows counties to adopt energy improvement programs. Check with your county tax assessor for current programs.

Utility Rebate Programs

Duke Energy (serving most of Western North Carolina) offers commercial energy efficiency rebates for qualifying improvements. Metal roofing itself doesn’t typically qualify, but roof installations often coincide with insulation upgrades or HVAC replacements that do qualify for rebates.

Potential Rebate Opportunities:

  • Roof insulation upgrades: $0.05-0.15 per sq ft
  • HVAC equipment replacement coordinated with roofing: $200-3,000 per unit
  • LED lighting installed during roofing project: $10-25 per fixture

We help customers identify rebate opportunities and coordinate applications. Most rebates require pre-approval before work begins, so we address this during project planning.

Insurance Premium Reductions

Many commercial insurance carriers offer premium reductions for metal roofing due to superior fire resistance, wind resistance, and impact resistance. These savings compound year after year.

Typical Premium Reductions

Class A Fire Rating: 5-10% reduction Most metal roofing systems achieve Class A fire ratings (highest available), which reduces fire insurance risk.

High Wind Resistance: 3-8% reduction Metal roofing tested to FM 1-90 or higher wind ratings reduces wind damage risk, lowering premiums in wind-prone areas.

Impact Resistance: 2-5% reduction Metal roofing’s impact resistance (typically Class 4, the highest rating) reduces hail damage claims.

Combined Reduction: 10-20% total premium reduction possible

For a building with $25,000 annual insurance premium, a 15% reduction saves $3,750 annually. Over a 30-year period, that’s $112,500 in savings – a significant portion of the roof’s initial cost.

Documenting Improvements for Insurance

Your insurance carrier will want documentation of the new roof system including:

  • Material specifications showing Class A fire rating
  • Wind uplift test results showing FM ratings
  • Impact resistance test results
  • Installation certification

We provide these documents as part of every commercial metal roofing installation. Contact your insurance agent before installation to understand specific documentation requirements and confirm premium reduction availability.

20-Year Financial Impact Analysis

Let’s model the complete financial picture for a 25,000 square foot commercial building in Asheville, NC:

Initial Investment:

  • Metal roofing installation: $275,000
  • Section 179D certification: $5,000
  • Total upfront cost: $280,000

First-Year Tax Benefits:

  • Section 179D deduction: $47,000 × 21% = $9,870
  • Section 179 depreciation: $233,000 × 21% = $48,930
  • First-year tax savings: $58,800
  • Net first-year cost: $221,200

Annual Operating Savings:

  • Energy cost reduction: $4,500 (30% of $15,000 cooling costs)
  • Insurance premium reduction: $3,125 (12.5% of $25,000 premium)
  • Maintenance savings vs. asphalt: $1,200
  • Annual savings: $8,825

20-Year Cumulative Impact:

  • Net first-year cost: $221,200
  • Less: 20 years of savings: $176,500
  • Net 20-year cost: $44,700
  • Effective cost after savings: $2.24 per square foot for 20 years of protection

Compare this to replacement costs for a TPO or built-up roof during the same period ($150,000-200,000) and metal roofing represents significant financial advantage.

Frequently Asked Questions

Do energy savings apply year-round or just in summer?

Primarily summer, though metal roofing with proper insulation reduces winter heating costs by 5-10% through reduced thermal bridging. The bulk of savings (70-80%) come from reduced cooling loads during warm months.

How long does it take to recoup the energy efficiency premium?

Metal roofing costs $3-7 more per square foot than standard commercial roofing. With annual savings of $8,000-15,000 for typical commercial buildings, payback on the efficiency premium happens in 3-8 years. The roof continues saving money for 40-50 additional years.

Can I claim Section 179D on a building I lease?

Potentially yes. For leased buildings, the deduction may go to either the building owner or the lessee depending on who pays for the improvement and the lease terms. Government building lessees can claim the deduction even though they don’t own the building. Consult your tax advisor for your specific situation.

Does light-colored metal roofing work better than dark colors for energy efficiency?

Yes, significantly. White or light-colored roofs reflect 70-85% of solar radiation while dark colors reflect only 30-50%. For maximum energy savings, choose light colors with high SRI ratings. We provide SRI ratings for all color options during project planning.

How do I know if my project qualifies for Section 179D?

The 25% energy reduction requirement is the key threshold. Most metal roofing projects alone achieve 15-20% reduction. Adding insulation, HVAC, or lighting upgrades reaches 25%+. We work with energy engineers who can model your specific building to determine qualification before you commit.

Get Your Energy and Tax Savings Analysis

Every building has different energy profiles and tax situations. We provide customized analysis showing your specific savings potential including:

  • Current energy cost baseline
  • Projected savings with metal roofing
  • Section 179D qualification assessment
  • Section 179 depreciation impact
  • Insurance premium reduction estimate
  • 20-year total cost of ownership comparison

Call us at 828-888-ROOF or schedule your free assessment online. We serve commercial properties throughout Western North Carolina including Asheville, Hendersonville, Black Mountain, Brevard, and surrounding areas.

We’re a locally-owned roofing company that understands both roofing and business finances. We’ll show you the complete picture so you can make an informed decision about your commercial property investment.