Understanding the Energy Community Bonus for Commercial Solar Projects in California

Unlock Extra Benefits for Your Commercial Solar Energy Project

Are you considering a solar energy project for your business? The Energy Community Adder could provide significant financial benefits that will enhance your project’s value. Learn how you can qualify and make the most of this opportunity.

Energy Community Bonus Credits

What is the Energy Community Adder?

The Energy Community Adder is an initiative by the Department of the Treasury and the IRS, designed to incentivize solar energy projects in specific areas. This program offers a 10% increase in the value of the Investment Tax Credit (ITC) and a 10% increase in the value of the Production Tax Credit (PTC) for eligible projects.

Key Benefits

  • Increased Value: Boost your project’s financial viability with an extra 10% on ITC and PTC.
  • Support for Energy Communities: Contribute to the development and revitalization of areas affected by the decline in traditional energy sectors.

Eligibility Criteria

Your solar project must be located in one of the following areas to qualify:

  • Brownfield Sites:
    • Redeveloped industrial or commercial sites contaminated by hazardous waste.
  • Metropolitan or Non-Metropolitan Statistical Areas:
    • Areas with 0.17% or more direct employment or 25% or more local tax revenues from coal, oil, or natural gas since 2010.
    • Areas with an unemployment rate higher than the national average in the previous year.
  • Census Tracts:
    • Census tracts (or adjoining tracts) where a coal mine was closed after 1999 or a coal-fired electric generating unit was retired after 2009.

Per guidance released by the Treasury Department on June 15, 2023, all commercial projects in the following California counties qualify for the Energy Community Adder:

  • Kern
  • Los Angeles
  • Orange
  • Solano
  • Sutter
  • Ventura
  • Yuba

How to Apply

Step 1: Free Energy Audit

Start with a free energy audit to confirm your project’s eligibility for the Energy Community Adder.

Step 2: Mapping Tool

Utilize the searchable mapping tool provided by the Interagency Working Group on Energy Communities to identify if your project area is eligible.

Step 3: Application

Complete the application process through the Department of the Treasury and IRS platforms. Ensure you have all required documentation to support your eligibility.

Ready to Get Started?

Don’t miss out on this opportunity to boost your solar project’s value and contribute to the growth of energy communities. Begin with a free energy audit today! Give us a call to schedule a time and take the first step towards maximizing your solar project’s potential.

By understanding the benefits and eligibility criteria for the Energy Community Adder, you can make informed decisions that not only enhance your project’s financial return but also support revitalizing energy communities in California.

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