Commercial Solar OwningAm3r1c@n-Sup2017-08-21T12:21:09-04:00
Own Your Piece of the Sun!
The ownership model is the most beneficial to commercial business!
When the proper system is developed and 5 revenue streams are utilized the result is a typical ROI (Return On Investment) of 4-8 Years. While the systems are engineered and warrantied for 20+ years.
Commercial Financial Incentives
Federal Investment Tax Credit
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential (Section 25D) and commercial and utility (Section 48) investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit.
Modified Accelerated Cost Recovery System
MACRS depreciation is an economic tool for businesses to recover certain capital costs over the solar energy equipment’s lifetime. Allowing businesses to deduct the appreciable basis over five years reduces tax liability and accelerates the rate of return on your solar investment.
Solar Renewable Energy Credit
An SREC is a solar renewable energy credit. One is created for every megawatt hour (MWh) of electricity produced by a solar generator. Keep in mind that SRECs are sold separately from the electricity they produce. This means a customer with a solar array on their roof can use the electricity on-site and then sell the SRECs off to another buyer. The buyers are the utilities.
Generated Electric Revenue
Before solar every organization buys their electricity from a local utility which varies dependent upon which jurisdiction they fall under. After a solar PV system is installed the only electric paid for by the organization is the delta between the production and consumption if any. Represented by Figure 1:1. In some cases a Solar PV system will offset more consumption or less dependent upon system configuration. By implementing a solar PV system the electric you were paying for is generated by the system. The value associated with that is the all in rate previously paid for by the utility multiplied by the generation of the system.
The state grants associated with a solar PV system vary dependent upon which jurisdiction the solar PV system falls under. In the State of MD there are several grants available to all customers ranging from a couple hundred to a couple thousands of dollars.