Government Rebates and Tax Credits
Federal,
state and local governments offer incredible financial incentives to
encourage businesses to invest in renewable energy. These incentives
dramatically lower the cost of a solar system and can make the
difference in turning your project into a profitable investment. State and Local Rebate Programs
Many states, cities and utility companies have created programs to
encourage businesses to switch to solar power. The amount of the rebate
subsidy varies by program, but some are generous enough to cover up to
40% of your system cost. However, these programs are designed to reward
early adopters of solar power, so the rebate amount per project
continues to drop as the allotted funds are consumed. The Green Supply Company will
identify all of the qualifying programs for your business and file the
required paperwork for you.
Federal Tax Credits
The federal government offers a number of solar incentives,
including a 30% investment tax credit (ITC) on the solar system cost.
Your company can also recognize accelerated capital depreciation over 5
years, with 50% bonus depreciation for 2009 projects. As part of the
2009 American Recovery and Reinvestment Act
(ARRA), the Obama administration has proposed several grant programs
for renewable energy that are expected to further help fund solar
installations.
Renewable Energy Credits
Renewable Energy Credits (RECs) are tradable commodities that were
developed to place a value on clean, renewable sources of energy. These
credits can be sold in compliance markets to utility companies who need
to meet mandated renewable energy standards or the credits may be sold
in voluntary markets to organizations who wish to meet renewable energy
goals. As a producer of solar energy, you will be credited with one REC
for every 1,000 kWh (1 MWh) of electricity you produce. You can also
purchase RECs to further offset the consumption of fossil-based fuels
by your business.
Additional Information on Solar Incentive Programs
- Incentive programs vary considerably from state to state. Find out more about programs in your area by visiting the Database of State Incentives for Renewable Energy (DSIRE).
- To find out exactly how much your business can save through solar incentive programs, call The Green Supply Company to set up a free solar consultation.
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