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Commercial Solar Incentives Add Up to Big Savings

Sabrina Lopez
September 5, 2016
2 min read

Many of the world’s most successful businesses are going solar 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 to dramatically reduce the costs of installing their solar energy plant.

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

26% Solar Investment Tax Credit (ITC)

Available to businesses and homeowners alike, this incentive will offset up to 26% 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 receives money back from their tax return, the credit will not be applied for that year and will roll forward. The 26% ITC is only available in 2020 before it drops to 22% in 2021. In 2022, it will decrease to 10% for commercial and 0% for residential projects.

MACRS Investment Depreciation

Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), established in 1986 as a method of depreciation in which a business’s investments are recovered, for tax purposes, over a specified period 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.

More help’s never been available to those businesses who’d like to start offsetting the rising energy cost with their 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! 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.