Commercial Incentives
Many states and utilities offer a variety of incentives to help offset the initial cost of installing solar power, further increasing your return on investment. In addition, the Federal government currently has a 30% Investment Tax Credit which helps to offset a large portion of the upfront system cost. Our team of rebate and interconnection specialists can help you navigate the incentive process from beginning to end. In most cases the only work required of you is to sign on the dotted line and we’ll take care of the rest.
For more information on how these incentives can help finance your solar system and which are available in your area, please call one of our Senior Account Executives.
State Cash Incentives
Many states offer rebates to encourage the growth and adoption of renewable energy resources such as solar. The calculation and regulation of these rebates varies from state to state. Performance-based incentives are becoming more common as states encourage customers and installers to design systems to maximize output annually or during peak periods. In some states these incentives are based on estimated performance and paid at the completion of the installation and in other states, such as California, incentives are paid monthly over a 5 year period based on actual system production.
Click a state to review more details about rebate programs available:
Tax Credits
Federal and state tax laws exist that allow solar system owners to take advantage of additional financial benefits such as increased Federal tax deductions and accelerated asset depreciation schedules. The Federal government is currently offering a 30% Investment Tax Credit (ITC). Many states such as Oregon offer incentives such as state tax credits in addition to a cash rebate. Arizona offers a reduction in the amount of sales tax charged on renewable energy equipment which in turn leads to lower system costs.
SPG Solar Senior Account Executives are familiar with the tax credits that may be available in your area. However we suggest that you contact your tax specialist for specific details about how your business can take advantage of these benefits.
Performance-Based Incentives, Net Metering and Feed-in Tariffs
Many utilities have programs in place governing the purchase of solar energy at predetermined rates for specific periods of time when excess generated kWh are delivered back to the utility grid. These can include performance-based rebates, net metering, and feed-in tariffs. Each state has different rules regarding these types of incentives, and although very popular in Europe, the Feed-in Tariff model has not yet been widely adopted throughout the United States. Not all of these models can be utilized at the same time. However, many utility territories have structured programs in place to combine the benefits of the various models for their specific customers' needs.
SPG Solar is the expert in the various types of generation based incentives that are available to your business. For more information please contact an Account Executive today to receive a customized feasibility analysis and description of the options available for your location.
Renewable Energy Credits (RECs)
Renewable Energy Credits (RECs) represent the environmental attributes associated with producing renewable energy. Similar to emission offsets, these RECs have value and can be traded or sold. Many states and utilities will purchase RECs to meet government mandated Renewable Portfolio Standards (RPS). RECs may also be bought or traded in the voluntary market for organizations to meet renewable energy goals.
For More Information on Solar Incentives
The following resources provide detailed information about incentive programs and policies in individual states:
- http://www.dsireusa.org/ — The Database of State Incentives for Renewables and Efficiency is a comprehensive source of information about individual state and utility based incentives for both solar and energy efficiency.
- http://www.seia.org/ — The Solar Energy Industries Association offers detailed information on the Federal solar incentives available including the 30% Investment Tax Credit.
- http://www.wregis.org/content/section/4/26/ — The Western Renewable Energy Generation Information System (WREGIS) is an independent, renewable energy tracking system for the region covered by the Western Electricity Coordinating Council (WECC). WREGIS tracks renewable energy generation from units that register in the system using verifiable data and creates RECs for this generation.