Incentives & Financing
State and local rebates: State and regional solar programs, such as those provided through the California Solar Initiative (CSI), provide for rebates that cover as much as +30% of the system cost in some cases. We have significant expertise in designing system sizes and specifications to maximize available state and local rebates.
Federal Tax Credit: Commercial solar projects can take advantage of a 30% uncapped Federal tax credit. To the extent the credit cannot be fully utilized during the current tax year, it can be carried back one year and forward twenty years. This credit is often a critical factor in reducing net system costs for host customers but it requires offsetting taxable income. For certain qualified enterprises that cannot take advantage of the federal tax credit (e.g., tax-exempt entities), we can help structure a financing that indirectly preserves the economic benefits of the federal tax credit for the host customer.
Federal Accelerated Depreciation: Commercial solar projects also qualify for 5-year accelerated depreciation, which is worth about 20% of system cost in the first year for most systems.
Renewable Energy Certificates: Renewable energy certificates are credits which have value and can be sold on the open market. The values of certificates are driven by Renewable Portfolio Standards which determines the percentage of power utility companies must derive from renewable sources of energy. Each 1,000kWh of solar power produced by your system earns you one renewable energy credit.
Net-Metering: Under net metering, a system owner receives retail credit for the excess portion of the solar electricity they generate. This benefit is mandated by federal law for customers of public electric utilities in the United States. Exact program details vary with each utility, but the general effect is to allow you to bank excess solar power generation for future credit against your utility bills.
Financing: The commercial market for solar systems is driven by available financing of system costs. We have established strategic partnerships with several of the most reputable financial institutions in the world to optimize financial structures, whether under a tax lease, a structured lease, a power purchase arrangement or other forms of financing, our team of financing experts can show you how to maximize the tax and State incentive programs related to solar projects. The financial benefits that result may include no upfront costs and potentially immediate and material savings on your power charges. Please contact us to learn more about our financing solutions.