Financial Incentives for Solar Energy

A variety of financial incentives for renewable energy are available to help make an investment in solar energy more affordable for both homeowners and businesses, and to accelerate the adoption of clean energy technologies. These range from the federal tax credit to production incentives offered by utilities and are often the result of legislative policies, and therefore vary from state to state.

We keep up-to-date with current incentive programs for clean energy investments and generation, and assist our customers in identifying any and all that they may benefit from. Below you’ll find Federal incentives and links to state-level incentives as well.

Federal Incentives:

 

– Residential Renewable Energy Tax Credit

30% tax credit with no maximum

Applies  solar thermal, solar electric and wind energy systems

System must serve a dwelling used as a residence by the taxpayer

Excess credit can be carried to the next tax year

Expires 12/31/2021

– Business Energy Investment Tax Credit

30% tax credit with no maximum

Applies to solar thermal, solar electric and wind energy systems

Available to commercial, industrial, and agricultural businesses

Excess credit can be carried to the next tax year

Expires 12/31/2021

– Modified Accelerated Cost-Recovery System (MACRS)

Businesses may recover investments through depreciation deductions

Applies to solar thermal, solar electric, and wind energy systems

Classified as a five-year property

– USDA Rural Energy For America Program (REAP)

Up to 25% of total eligible  project costs in grants, $500,000 maximum

Up to 75% of total  eligible project costs in loan guarantees

Applies to energy efficiency improvements and renewable energy systems

Available to agricultural producers and small businesses in eligible rural areas

State-level Incentives:

These pages will identify state level and utility incentives that may be available to you:

We recommend the Database of State Incentives for Renewables & Efficiency as a comprehensive source of information on incentives and policies that support energy efficiency, as well as renewables, from the national to municipal level.

While we strive to inform our customers of financial incentives that make their investment in a clean energy system even more economically favorable, we also recommend that they consult  a financial advisor. As the ability to claim tax credits is based on tax liability, this is especially advisable  to ensure that the credits can be fully realized, and that an investment in solar energy is structured to the fullest economic advantage.