Commercial Solar Incentives in Albuquerque & Santa Fe. NM
Financial Benefits of Commercial Solar Energy Systems
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.
Current Solar Financial Incentives
Solar Tax Incentives
Don’t Wait—The Federal Tax Credit for solar may disappear after 2025.
The IRS offers two tax incentives for commercial solar projects. First, the Federal Investment Tax Credit (ITC) offers an uncapped 30% tax credit equal to 30% of total system cost against you Federal tax liability.
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 current 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!
New Mexico also offers an additional 10% tax credit (up to $6,000) for solar installations, applied towards your State tax liability.
USDA Grants & Loans
The USDA Rural Energy for America Program (REAP) Grant provides $145 million in funding for 700 loan and grant awards to help agricultural producers and/or rural small business owners make energy efficiency improvements and renewable energy investments to lower energy costs, generate new income, and strengthen the resiliency of their operations.
The REAP grant covers up to 50% of total solar system costs and can be combined with other solar tax incentives. Much of New Mexico is considered to be rural including Gallup, Espanola, Los Lunas, Farmington, Los Alamos, Clovis, Hobbs, and more; offering a great opportunity for rural New Mexico businesses to have solar panels installed. Positive Energy Solar can help with the application process.
Low-Income Communities Bonus Credit Program
The Department of the Treasury and the Internal Revenue Service (IRS) established the program under section 48(e), which was added to the Internal Revenue Code by the Inflation Reduction Act, to promote cost-saving clean energy investments in low-income communities, on Indian land.
A 10% increase is available to eligible solar and wind facilities that are installed in low-income communities or on Indian land and a 20% credit increase is available to eligible solar and wind facilities that are part of a qualified low-income residential building or a qualified low-income economic benefit project.
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.
Some of our commercial solar projects include:
- Tomasita's Restaurant | 69 kW (Solar Carport) | Santa Fe, NM
- Meow Wolf | 104 kW (Roof) | Santa Fe, NM
- Kingcat, LLC | 35.56 kW (Roof) | Albuquerque, NM
- Hydrocut | 38 kW (Single Axis Tracker) | Belen, NM
- Baca's Trees | 20 kW (Carport) | Albuquerque, NM
- Judge Steve Hererra Judicial Complex | 113 kW (Roof) | Santa Fe, NM
- Nativity Church | 37 kW (Roof) | Albuquerque, NM
- Aspen Medical Center | 40.55 kW (Roof) | Santa Fe, NM
- Santa Fe Skies RV Park | 192 kW (Ground) | Santa Fe, NM
- City of Las Cruces | 951 kW (Ground, Roof, Carports) | Las Cruces, NM
- Santa Fe Community College | 1.5 MW (Ground) | Santa Fe, NM
- Buckman Direct Diversion | 1.5 MW (Ground) | Santa Fe, NM
- City of Santa Fe Water Division | 86 kW (Carport) | Santa Fe, NM
- Plaza Feliz Apartments | 23 kW (Multiple Roof) | Albuquerque, NM
- Bernalillo County | 665.985 kW (Various buildings) | Albuquerque & Tijeras, NM
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