Commercial Solar Incentives

Positive Energy Solar is committed to helping you understand how solar can be a valuable investment for your business. There are financial benefits of commercial solar energy systems, including federal tax incentives that allow businesses to recoup about 50% of solar project costs within the first year! Some of these commercial solar incentives include financing options like C-PACE (Property Assessed Clean Energy), USDA REAP Grants, and various tax benefits for New Mexico Businesses.

SOLAR TAX INCENTIVES

The IRS offers two tax incentives for commercial solar projects. First, the 26% Federal Investment Tax Credit (ITC) is available for solar systems placed in service by 12/31/20. The credit amount is uncapped and equal to 26% of total system cost. Second, Modified Accelerated Cost Recovery System (MACRS) is a method of depreciation in which a business’s investments in solar property can be recovered through tax deductions. Under the 2018 tax plan, MACRS benefits can be taken all in the 1st year. Taken together, the federal tax credit and depreciation can reduce commercial solar project costs by about 50% within the first year!

USDA GRANTS

The USDA Rural Energy for America Program (REAP) Grant covers up to 25% of total solar system cost for agricultural producers and rural small businesses. The next grant application deadline is April 1, 2019. Positive Energy Solar assembles the application and makes the process easy! Our grant approval track record is extremely high.

GOING SOLAR WITH C-PACE

Commercial Property Assessed Clean Energy (C-PACE) is a financing mechanism used by local governments that allows commercial, industrial, and multi-family property owners in New Mexico to finance energy efficiency and renewable energy improvements through their property tax payment. The repayment of qualified energy improvements is done via a voluntary property tax assessment collected by local governments, just as other public infrastructure investments are financed. The financing for PACE projects may be provided by municipal bonds or third party capital secured by the property assessment payments.

Have you always wanted to put solar panels on your facility to cut and control electric bills? With C-PACE, your business may qualify for a long term loan with no upfront costs to you, and repaid as a tax assessment over 20 years.

You begin saving the moment the system is turned on because the amount saved on the utility bill is more than the repayment. Because electricity only goes up in price over time, this gives you the ability to lock in your utility costs.

When you sell your building, the solar equipment goes with the sale. The value of your property goes up without requiring any additional collateral from you – the loan is guaranteed via a senior lien to the mortgage.