Commercial Incentives for Solar
Buying a commercial solar system in Mondovi, Wisconsin, and Florida qualifies you for various rebates and tax credits.
Incentives In the Utility Sector
Going solar might be expensive, but you may be eligible for a rebate from your energy company. Commercial solar incentives are offered to the installer as a cash bonus or as a bill credit based on the capacity and production of the installed system. The following list of utilities needs to be completed, but you may qualify if you use any of them. Contact Midwest Solar for the most up-to-date information about their programs and specifics.
- Oncor
Based on the system’s capacity and projected output, Oncor will give the installer/service provider a cash incentive. This incentive may offset as much as 20 to 30% of the cost of the system. A solar contractor like Midwest Solar, approved by Oncor, must install your system.
- Coserv
Commercial and residential clients can get a monetary incentive from Coserv, dependent on the system’s capacity. A solar contractor like Midwest Solar, which CoServ approves, must install your system.
- Garland Power and Light
When money is available, GP&L will issue a bill credit to help cover installing solar panels.
- Denton Municipal Electric
When budget allows, DME provides a monetary incentive to help defray the expense of installing solar panels.
- Farmers Electric Coop
Farmers are given a cash refund for solar installations of 50 kW or less.
- United Cooperative Services
United Cooperative Services provides rebates to homeowners and business owners who install solar panels.
- CPS (San Antonio)
The capacity of the system installed is used to determine the amount of the cash refund offered by CPS. Eligible recipients must have the system installed by a CPS-approved solar contractor like Midwest Solar.
- Austin Energy
Austin Energy offers a production-based incentive that incentivizes you based on how much energy your system produces. The discount is shown as a subtraction from future charges. An Austin Energy-approved solar contractor like Midwest Solar must install the system.
- AEP Texas
You’ll receive a monetary reward if your system meets or exceeds AEP’s requirements.
TAX CREDIT FOR FEDERAL INVESTMENTS
You can get a tax break of up to 30% of the cost of your solar power system, thanks to the federal ITC. The following timetable outlines how this incentive will gradually decrease beginning in:
2020: 26%
2021: 22%
2022 and onward: Only 10% for commercial use. After 2022, homeowners will no longer be eligible for a rebate on their system purchases.
MACRS Depreciation
The cost of a commercial solar array may be deducted over time using the MACRS depreciation schedule. After removing the amount of the federal tax credit by half, the remaining cost is the depreciable basis of the solar PV system. Bonus depreciation may allow you to write off the whole basis in the first year. For further information, talk to a tax expert.
Financing CHOICES COMMERCIAL
- PACE – Property Assessed Clean Energy
Property-assessed clean energy (PACE) financing is a voluntary land-secured assessment that enables commercial, industrial, and multifamily property owners to finance renewable energy installations with no upfront cost. Only some Texas counties qualify for PACE funding. Contact Midwest Solar or the Texas Pace Authority website for more information.
- PPA – Power Purchase Agreement
A power purchase agreement (PPA) is a legal document that specifies the terms under which a buyer agrees to acquire electrical power from a seller. The solar photovoltaic (PV) system in this setup belongs to a third party and is maintained by that party. It can be built on land the power purchaser owns or leases or is built elsewhere and then leased to the power purchaser. Get in touch with Midwest Solar to discuss whether or not a power purchase agreement may be suitable as a source of funding for your endeavor.