Commercial Solar Incentives Add Up to Big Business Savings!
Many of the world’s most successful businesses are installing solar to reduce their Bottom Line. This is done with a multi prong approach thru decreasing operating expenses, and dramatically improving their balance sheets. For companies like Whole Foods, Intel, Microsoft, Walmart, Ikea and many others, it’s no longer a question of “If” solar will save them money, but “When” and “how much”.
Despite this growing understanding, most medium to small-sized businesses are largely unaware of the numerous incentive programs still available that can dramatically reduce their operating expenses which will increase yearly, monthly, and weekly cash flow’s. This is the where SouthFace Solar comes in.
Our tried and true method of analysis will quickly show the costs of installing your own solar energy plant. While also explaining how the monies of the project will work.
Below is a list of what you should know about 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 all 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, your business must have tax liabilities upon filing. In other words, if the business owner is going to receive monies back from the IRS, then the credit will not be applied for that current tax year and will simply roll forward to the next tax years filing. The 26% ITC is only available through the 2020 yearend, after that the incentive drops to 22% for 2021 before permanently dropping to 10% for commercial projects and 0% for residential projects.
As of January 1, 2019, the Arizona legislature has been discontinued any state tax credits for commercial solar projects. Reach out to your state representative for more information.
Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), as a method of depreciation to the solar asset. This is to allow a business’ investments to be recovered, for tax purposes, over a specified length of time thru a series of annual deductions(typically a five year period).
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.