Commercial Solar Tax Incentives Summary
There are both state and federal tax credits available for commercial entities integrating renewable energy into their new and existing projects. Commercial systems are eligible for the best tax credits and generally have paybacks that are less than 4 years for thermal systems and less than 10 years for solar electric (pv) systems.
The available tax incentives include federal and state solar tax credits as well as accelerated depreciation schedules. For rural and agricultural businesses, there are additional grants, incentives and loans for renewable energy systems. In most cases, the incentives can cover more than 70% of the installed cost of the system.
Southern Energy Management can help you understand these incentives and evaluate the investment potential of the different renewable energy options.
The list below offers an overview of incentives for solar thermal and solar pv systems:
- Federal Solar Tax Credit: Tax credit for 30" installed cost of system
- NC State Tax Credit: Tax credit for 35% installed cost of system
- Federal/MACRS: Accelerated depreciation schedule
- USDA Programs, Section 9006 and Other Programs: 25% grant and loan program
- Non-Profits Solar Credit: Pass through provision to allow donors to take the NC solar tax credit of 35% (effective Jan. 1, 2008)
- NC GreenPower Program - Only for solar pv projects
The above is for informational purposes only. Southern Energy Management strongly recommends that companies consult with tax professionals in order to fully maximize and benefit from available incentives.
Additional Resources:
Database of State Incentives for Renewables & Efficiency
www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=NC19F&state=NC&CurrentPageID=1&RE=1&EE=1
NC Solar Center:
www.ncsc.ncsu.edu/information_resources/tax_documents/Tax_Credit_Guidelines.pdf, www.ncsc.ncsu.edu/information_resources/fact_sheets.cfm, www.ncsc.ncsu.edu/information_resources/factsheets/Incentives_Commercial_Solar.pdf
USDA:
www.rurdev.usda.gov/rbs/farmbill
