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Save in Three Major Ways to Pay for Over 80% of Your Project Cost
30% Federal Tax Credit - Solar Thermal energy projects qualify for the Federal Business Energy Investment Tax Credit (ITC). You can take the credit over more than one tax year, and the 30% applies to the entire energy project. Another reason why you should not delay your project is that the ITC is scheduled to sunset in 2016.
Depreciation - Your Solar Thermal system qualifies for Federal accelerated depreciation, which allows you to depreciate the entire asset over just 5-years. The State of California also has a depreciation benefit. Check with your accountant to take advantage of all tax benefits.
Cash Rebates in California have never been higher, but they are going fast. With the new CSI rebate of $20.19/Therm, 35% or more of your solar hot water project costs can be covered by this rebate alone. By waiting, you run the risk of having that percentage drop to 25% or less. ACR Commercial Solar will let you know the rebate amount before your project begins, and you will get the entire rebate check shortly after project completion - Not months or years! This is an unbelievable program exclusively for solar thermal projects.
California Commercial/Multi-Family Rebate Incentive Table
California Solar Initiative
Higher Rebates Now Available for
Solar Water Heating Systems
The CSI-Thermal Program offers cash rebates of up to $4,366 on solar water heating systems for single-family residential customers. Multifamily and Commercial properties qualify for rebates of up to $800,000 on solar water heating systems and eligible solar pool heating systems qualify for rebates of up to $500,000. Save money on gas or electricity bills by harnessing the heat of the sun!
Incentives will decline over time as the program meets certain benchmarks, so customers are encouraged to apply for their rebate early.
Funding for the CSI-Thermal program comes from ratepayers of PG&E, SCE, SoCalGas, and SDG&E. The rebate program is overseen by the California Public Utilities Commission as part of the California Solar Initiative.
For more information visit the California Solar Initiative Website at gosolarcalifornia.ca.gov.
Federal Business Energy
Investment Tax Credit (ITC)
The federal business energy investment tax credit available under 26 USC § 48 was expanded significantly by the Energy Improvement and Extension Act of 2008 (H.R. 1424), enacted in October 2008. This law extended the duration -- by eight years -- of the existing credits for solar energy, fuel cells and microturbines; increased the credit amount for fuel cells; established new credits for small wind-energy systems, geothermal heat pumps, and combined heat and power (CHP) systems; allowed utilities to use the credits; and allowed taxpayers to take the credit against the alternative minimum tax (AMT), subject to certain limitations. The credit was further expanded by the American Recovery and Reinvestment Act of 2009, enacted in Feb. 2009.
Solar. The credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.
A number of changes to this credit are scheduled to take effect for systems placed in service after Dec. 31, 2016. The credit for equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat will decrease from 30% to 10%.
For more information about Federal, State and Local incentives, please visit the DSIREusa.org Website.
Modified Accelerated Cost-
Recovery System
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes solar thermal systems, which are afforded a 5-year schedule for depreciation.
CALIFORNIA. You may be able to take advantage of additional/separate depreciation of your solar thermal system in California.
Note that the descriptions above are simplified versions of those contained in tax code, which often contain additional caveats, restrictions, and modifications. Always review relevant sections of the code in detail with your tax professional.
