7 Incredible Incentives and Rebates Available for Solar for Business

November 24, 2020

The renewable energy wave is quickly sweeping across the nation. Businesses are turning towards solar energy to reduce their operating expenses. Commercial solar systems also allow corporations to go green for a better planet.

Federal and State administrations continue to offer multiple solar incentive programs to encourage organizations to go solar on energy consumption. For instance, the U.S. Department of Energy points out most schools could save up to 25% on energy costs by switching to solar energy. Here are seven fantastic incentives and rebates that you can take cash in when you get solar energy for your business.

1. Investment Tax Credit

The federal government provides a solar tax credit, popularly known as an investment tax credit. It allows businesses to deduct 26% of the installation cost for your commercial solar panels. ITC can help you offset the initial investment cost of acquiring the solar unit. You can claim your ITC when filing your annual federal tax return.

2. State Tax Credit

It is similar to the federal ITC but offered by the local state governments. Some states may provide additional tax credits, which can be deducted when filing the state tax return. The value may vary significantly from State to State.

3. Solar Renewable Energy Certificates (SRECs)

Solar Renewable Energy Certificates enable property owners to sell their certificates for energy to utility companies. You may earn an SREC for every 1000 kilowatt-hours produced by your commercial solar installation. Turning to solar energy for your business may turn into a money-generating venture that boosts your bottom line.

4. Cash Rebates

You may also benefit from a one-time discount at the time of installation. The rebates may come from state agencies, municipalities, utility companies, or organizations that promote renewable energy use. The offer usually lasts for a specific period and may end after a specified number of solar units are installed.

5. Performance-Based Incentives

Performance-based incentives (PBIs) are usually provided based on your commercial solar system's actual energy production. When you install solar energy for your business, you get paid based on the energy produced per kilowatt-hour. PBIs intend to push installers and solar unit owners to focus on the proper installation and maintenance of their systems.

6. Tax Exemptions

Some states have incentives in place that provide tax breaks to property owners that utilize solar energy. They typically will not include the solar systems during property taxes assessment. It means while your property value may increase after getting solar energy for your business, you still pay the same amount in property taxes. You may also be exempted from state sales taxes, providing additional savings.

7. Subsidized Solar Loans

You may be eligible to finance the solar energy for your business by purchasing the unit using a subsidized loan. You can enjoy a reduced interest rate from credit advanced by your state, non-government organization, or utility companies. The subsidized loan allows you to own an asset that will generate income upon installation.

More CEOs, CFOs, and COOs, are now leaning towards renewable energy to reduce operating expenses. Federal and State governments continue to provide attractive incentives that businesses can take advantage of. For more information on how your farm or enterprise can benefit, contact Stone Creek Solar.