Get Up To 60% Off With Tax Incentives
As if lower utility bills weren’t incentive enough, when you switch to Solar most companies qualify for up to 60% off with Solar Tax Incentives. Not only will you qualify for a 26% Federal Tax Credit but you can accelerate the depreciation of your solar system over 5 short years. These tax incentives are equivalent to approximately 60% of the system cost, leaving you needing only 3-4 years of energy savings to recover your entire investment.
This category is perhaps the most well-known. The 26% solar Investment Tax Credit (ITC) and 5-Year Modified Accelerated Cost Recovery System (MACRS) have been important drivers in reducing costs for companies going solar. Many other rebates and incentives exist on the state, municipal, and utility levels. You can find out about what is available for different locations by searching the Database of State Incentives for Renewables & Energy: Click Here.
Strategic Net Metering
- Net Energy Metering Aggregation (NEMA) and Net Energy Metering Virtual (NEMV) was approved by the California Public Utility Commission in 2014 which allows businesses to install a single centralized solar power system to offset multiple meters or facilities. Benefitting meters can be on different rates or even located on different properties, but they must be contiguous parcels.
While most companies have heard of net metering, perhaps one of the least talked about, but extremely important topics is the role of rate structures. When possible, having the ability to switch rates and choose the best utility rate structure—as to the aforementioned solar-friendly rate structures—is extremely helpful to creating a winning financial scenario. Obviously, net metering (the ability to sell energy to the utility) is also a central ingredient to many situations for creating positive financial returns.
Maximizing Financial Value
This is a time of great opportunity for going solar. The growing number of financial options means that organizations have more paths to clean energy and greater energy-cost stability. However, this diversity adds some complexities to the mix, and that’s why having a solar partner with extensive financial experience is crucial. The right partner can help you bring the most financially advantageous combination of incentives, rate structures, financing, and investors (when applicable) together to help your company achieve maximum benefit and value from your solar project.