1. The Reap Grant

​

The Rural Energy for America Program (R.E.A.P.) Grant is a federal program that provides funding to rural businesses for renewable energy and energy efficiency projects. The REAP Grant can cover an additional 50% of the total project costs and is available to businesses in rural areas with populations of less than 50,000 people. To qualify, businesses must be able to demonstrate that the project will result in a significant reduction in energy costs or consumption.

​

2. Federal Tax Credit

 

The Federal Solar Tax Credit is an additional incentive that can significantly reduce the cost of a commercial solar system. This tax credit allows businesses to claim a 30% credit for the total cost of the solar system, including installation. This incentive has been extended, making it an even more attractive option for businesses looking to invest in solar energy.

​

3. MACRS Depreciation Value

 

MACRS (Modified Accelerated Cost Recovery System) is a depreciation method used by businesses in the United States to recover the cost of tangible assets over their useful lives. Under MACRS, assets are assigned to specific recovery periods, and each period has a designated depreciation rate. For solar projects, businesses can take advantage of the investment tax credit (ITC) to claim 100% of the depreciation in the first year. This accelerated depreciation allows businesses to recover a significant portion of the total system cost upfront, which averages out to approximately 26% of the initial investment. This incentive aims to encourage the adoption of renewable energy sources, such as solar power, by providing businesses with a faster return on their investment and reducing the payback period.

​

4. Financing Options

 

In addition to incentives, there are a variety of financing options available to help businesses invest in solar energy with zero out-of-pocket expenses. Many solar companies offer financing programs that allow businesses to finance the cost of their solar system over time. These financing options can include low-interest loans, lease agreements, and power purchase agreements (PPAs). Best of all, businesses can get financing for solar without any upfront dealer fees.

​

5. The Benefits of Commercial Solar

 

Overall, the combination of incentives and financing options available for commercial solar means that many Businesses and Farms can end up eliminating their electric bills and getting over 100% of the cost of their solar system paid for! This makes commercial solar an attractive option for businesses looking to reduce their energy costs and improve their sustainability practices. So why wait? Contact us today to learn more about how your business can benefit from solar.