As energy costs continue to rise and environmental regulations tighten, more businesses are turning to solar and other energy-efficient technologies to stay competitive. But what many companies don’t realize is that there are a wealth of government-backed incentives and tax credits that can make these upgrades even more affordable. At EnergyWare, we help businesses across the country unlock the full value of their clean energy investments—and that starts with understanding what’s available.
1. Federal Investment Tax Credit (ITC)
The Investment Tax Credit (ITC) is one of the most impactful incentives for businesses investing in solar energy. Currently, it offers a 30% federal tax credit on the total cost of installing a solar energy system. This applies to both commercial and residential properties, and can significantly reduce upfront costs.
Why it matters for your business:
- Reduces total project cost by nearly a third
- Can be carried forward if not used in the first year
- Encourages faster ROI on solar investments
2. MACRS Depreciation (Bonus Depreciation)
Businesses that invest in solar can also take advantage of the Modified Accelerated Cost Recovery System (MACRS), which allows for the depreciation of solar assets over five years. In combination with the ITC, MACRS can lead to an additional 20-30% in savings.
Bonus: Under current IRS rules, businesses may be able to claim 100% bonus depreciation in the first year.
3. State and Local Incentives
In addition to federal programs, many states, counties, and municipalities offer their own tax credits, rebates, or grant programs. For example:
- California offers property tax exclusions for solar installations
- New York provides the NY-Sun Megawatt Block Incentive
- Texas and other states offer local utility rebates
EnergyWare works with clients nationwide to identify region-specific incentives that can significantly lower project costs.
4. Utility Company Rebates
Many utility providers offer rebates for energy-efficient upgrades including LED lighting, HVAC systems, and solar installations. These can range from a few hundred to several thousand dollars depending on your energy usage and system size.
Tip: These rebates often have deadlines or limited funding windows, so acting quickly is essential.
5. Renewable Energy Certificates (RECs)
When your business generates solar power, you can earn Renewable Energy Certificates (RECs), which can be sold or traded. These represent proof that energy was generated from a renewable source and can offer an additional revenue stream.
6. Commercial Property Assessed Clean Energy (C-PACE) Financing
Some states allow businesses to finance energy upgrades through C-PACE, which ties the cost of improvements to the property tax bill. This can provide:
- Low interest, long-term financing
- No upfront capital required
- Transferable financing if the property is sold
Maximize Your Benefits with EnergyWare
At Energyware, we don’t just install solar—we optimize your entire energy strategy. Our team can assist in exploring and identifying the tax incentives, rebates, and credits best suited for your type of business, ensuring you capture every available dollar.
Ready to explore solar power for your business?
Click here and contact us today to learn more about sustainable solutions and financing options!
