Rebates and Incentives
Businesses are available for a suite of federal and state solar rebates and tax incentives which make purchasing solar more affordable.
NOTE: This information is provided as a courtesy and can rapidly change so please consult with ReVision Energy prior to making any financial decisions regarding a solar investment. We also recommend that all customers discuss solar investments with their accountant and/or financial advisor.
Last updated: 11/01/2016
The cornerstone of grid-tied solar photovoltaic systems is the policy of net metering, where the utility is mandated by state law to purchase electricity generated by the business and to offer compensation (in the form of a credit) on future electric bills. There are limits to the size of a system which is net-metered, which varies state-by-state, though practical considerations (like how much solar fits on your roof) usually come up before state limits are reached.
30% Investment Tax Credit
The 30% ITC is the most significant tax credit available for solar energy systems, both solar hot water and solar photovoltaic. A business may take a credit (not deduction) of 30% of the purchase price of a solar energy system against an existing income or AMT tax liability.
More information: http://programs.dsireusa.org/system/program/detail/1837
MACRS (5 Year Accelerated Depreciation)
Solar energy systems may be eligible for five year accelerated depreciation if claimed as business property under the federal Modified Accelerated Cost-Recovery System (MACRS). Businesses eligible to use this deduction typically see an additional savings of 20-26%.
More information: http://programs.dsireusa.org/system/program/detail/676
USDA REAP Grants
The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance.
These competitive grants are offered as much as twice per year and are available to businesses that meet the USDA’s definition of rural (under 50,000 inhabitants), while agricultural producers may be in rural or non-rural areas. ReVision Energy is able to offer some support in the grant-writing process on a case-by-case basis. A USDA REAP grant may provide up to 25% of a project’s cost, with a cap of $500,000.
NH Commercial & Industrial (C&I) Solar Incentive Program
This program offers incentives for solar energy systems in two eligible project categories. Category 1 is for solar electric and thermal systems rated less than or equal to 100 kW (AC) or thermal equivalent. Category 2 is for solar electric systems greater than 100 kW (AC) but less than or equal to 500 kW (AC). In each category, incentives are limited to 25% of the total project cost if less than the AC incentive payment otherwise calculated. This program is open to businesses, non-profits, public entities, and other non-residential customers within New Hampshire.
Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits are a form of Renewable Energy Certificate that are specifically met by solar generation assets. Every 1MWh of solar generation generates 1 credit, which has a market value which fluctuates based on demand. These credits can be sold to utilities so that they can meet their requirements under an individual states’ Renewable Portfolio Standard (RPS) legislation. SREC value varies widely state-by-state based on size of the solar market and aggressiveness of solar goals under the state’s RPS.