Many of the world's most successful businesses 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. In addition to what’s listed below, a few local utilities offer incentive programs of their own that can be added to the options below for even more savings. Our commercial solar team can help you determine what’s available in your area. So read on, and learn how you can offset as much as 50% of a commercial solar purchase.
Available to businesses and homeowners, 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 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 26% ITC is only available through the year 2020, after that the incentive drops to 22% in 2021 before dropping permanently to 10% for commercial projects and 0% for residential projects.
As of January 1, 2019, the Arizona state tax credit for commercial solar projects has been discontinued by the Arizona legislature. Please contact your state representative for more information.
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.
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. Contact our commercial solar team to find out what’s available for your business. Act now before these and other incentives expire.
Contact us today for a free solar evaluation and to find out about additional programs in your area.