Commercial Solar Incentives Add Up to Big Savings

Kyle Ritland, Marketing and Customer Experience
Kyle Ritland, Marketing and Customer Experience
September 5, 2016
2 min read

Many of the world’s most successful Solar panel farmbusinesses are going solar as a way to reduce operating expenses, and dramatically improve their yearly balance sheets. For companies like Walmart, Target and PepsiCo, it’s no longer a question of “If” solar will save them money, but how much and how quickly.

Despite this growing acceptance, most small and medium-sized business owners are still largely unaware of the numerous incentive programs available that can dramatically reduce the costs of installing their own solar energy plant.

Below is a quick summary of the most utilized commercial solar incentives. So read on, and learn how you can offset as much as 50% of a solar purchase. Turning sunlight into savings is more affordable that you think!

30% Solar Investment Tax Credit (ITC)

Available to businesses and home owners alike, this incentive will offset up to 30% of a solar purchase in the form of a federal incentive tax credit. To qualify, the business must have a tax liability upon filing. In other words, if the business owner is going to receive money back from their tax return, then the credit will not be applied for that year, and will simply roll forward. The 30% ITC is only available through the year 2019, after that the incentive drops to 26% in 2020, and then 22% in 2021 before dropping permanently to 10% for commercial projects and 0% for residential projects.

MACRS Investment Depreciation

Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), which was established in 1986 as a method of depreciation in which a business’ investments are recovered, for tax purposes, over a specified period of time via annual deductions. Qualifying solar equipment is eligible for a cost recovery period of up to five years.

USDA REAP Grants 

The Rural Energy for America Program (REAP) grant was established by the USDA to assist agricultural producers with renewable energy investments. This REAP grant is available in select rural towns across the country with a population below a certain threshold, and covers 25% of a solar investment up to $500,000 for qualifying businesses.

There’s never been more help available to those businesses who’d like to start offsetting the rising cost of energy with their own solar power plant. This list highlights just a few options at the federal and state levels. A handful of local utilities still offer incentive programs of their own that can be added to the options above for even more savings! At the end of the day, there is no guarantee how long these incentive programs will last. Even the federal 30% ITC credit already has an expiration date.

Contact us today for a free solar evaluation and to find out
about additional programs in your area.

Request a Commercial Solar Quote

About the Author

Kyle Ritland, Marketing and Customer Experience

Kyle Ritland, Marketing and Customer Experience

After working in technology marketing throughout the Pacific Northwest and Silicon Valley for more than 20 years, Kyle opted to follow his heart and focus his talents in solar energy.

As the head of Marketing at Sun Valley Solar Solutions, Kyle works hard to demystify the ever-changing solar landscape in Arizona and across the country. He especially enjoys helping people separate fact from fiction by presenting solar transparently and accurately, rather than relying on hype or deceptive marketing tactics that are far too common with some solar companies.

When not touting the benefits of solar, encouraging his friends to opt for paper over plastic, or growing his own vegetables, Kyle is generally found hiking with his pointer Bravo or preparing a home-cooked meal for friends.

“If you truly understand how solar works it’s easy to see through the gimmicks. The opportunity for savings is very real when you have the correct information”