Solar Energy Incentives

There are solar tax incentives and Power Purchase Agreements that allow businesses and organizations to save big with solar energy. The federal tax credit reduces the total cost of a solar system by 26%. Plus, a new bonus depreciation law allows businesses to write off 100% of the solar system cost in the first year.

Power Purchase Agreements help organizations go solar with no money down and flexible terms.  Towns, schools, companies, and churches pay only for the solar electricity that the system generates, often at a discounted rate compared to utility power. The Sundog Solar team can help you take advantage of these outstanding opportunities and explain your options! Sundog Solar also offers financing for small commercial solar systems.

SOLAR INVESTMENT TAX CREDIT SAVES YOU 26%

There is a generous federal tax credit that lowers the total cost of a renewable energy system by 26%. This money-saving opportunity is available for commercial solar energy installations in Maine.

Tax credits are a dollar-for-dollar reduction in income taxes owed. Therefore, they are more valuable to the taxpayer than a write-off. Qualified expenses include the cost of the solar panels, inverter, components, and the labor.

Installing a solar system on your business can qualify for the Solar Investment Tax Credit. For example, if you install a $20,000 solar system, the tax credit would reduce the system’s total net cost by an estimated $5,200. You may also be able to take a 5-year accelerated depreciation or a bonus depreciation for the system. Speak with your tax specialist to determine if you qualify.

POWER PURCHASE AGREEMENTS FOR ORGANIZATIONS AND MUNICIPALITIES

Power Purchase Agreements (PPAs) are an excellent way for many organizations to go solar for no money down. Municipalities, schools, and non-profit organizations can have a solar system installed on their property and purchase solar electricity for a set rate. A third party owns the solar system, typically one that can take advantage of the federal tax credit and other solar energy incentives, making it a win-win situation.

How are PPAs structured?

Sundog Solar typically offers PPAs where the organization has two options. They can purchase the solar system at the end of six years or they can continue to purchase the solar electricity for years to come. Most arrangements are cash-flow positive from day one. This is because our clients buy solar electricity at a lower rate than what the utility company offers. This arrangement allows towns, churches, condo associations, hospitals, schools, governmental agencies, and community centers to benefit from solar power without the upfront investment or finance charges.

Why are organizations going solar?

Some organizations enter a solar PPA primarily to lower their utility bills and lock in low electric rates for years. Others want greater energy independence, to reduce dependence on fossil fuels, and to benefit the environment. Many want to leverage the educational or marketing value of solar energy and to gain positive publicity. In fact, Sundog Solar helped one client achieve this by installing a public monitor system for citizens to learn about solar energy generation from a municipal solar system.

Should businesses buy a solar system or enter a PPA?

Most non-profit organizations will save more money with a Solar Power Purchase Agreement over buying the solar system outright because they cannot benefit from the federal solar tax incentives. However, businesses that can benefit from the 26% tax credit and take a bonus depreciation of the solar system can significantly reduce their tax burden. Whether a solar PPA or purchasing a solar system is more lucrative for a business depends mainly on its tax burden and if they can take full advantage of the solar tax incentives. We recommend speaking with a tax specialist before making a decision.

Does Sundog Solar install systems with PPAs?

The Sundog Solar team has installed systems for the towns of Waldoboro, Bristol, Stockton Springs, Oakland, Damariscotta, and Tremont, Maine. The solar system in Oakland is expected to save the town nearly $1 million over twenty years. We have also installed 1,400 solar panels on MDI High School in Bar Harbor, Maine and the WERU offices in East Orland.

SOLAR ENERGY SAVINGS

Net Metering allows utility customers to save money by earning credits for each kilowatt produced above their kilowatt usage for the month. Credits are used during lower production periods and are good for 12 months. Customers pay a minimum monthly charge and have access to utility power when needed. Businesses will not be reimbursed for unused credits if they expire.

Thanks to strong federal incentives for clean energy, there’s never been a better time to invest in a commercial solar-powered system in Maine. There is a 26% federal tax credit given for the entire cost of your solar electric system and a bonus depreciation available!

Bonus Depreciation for Businesses

Congress doubled the amount of depreciation that can be claimed for commercial solar energy projects. Businesses can now apply 100% depreciation for the expense of a solar panel system in year one instead of spreading it out over 6 years. This is helpful for businesses because it reduces the payback period of the solar system.

SUNDOG SOLAR – MAINE’S EXPERT SOLAR INSTALLATION TEAM