ITC - Stimulus Grant Businesses that install grid-connected solar systems qualify for tax credits amounting to almost a third of the net purchase price. Under
the current Stimulus Bill, the federal government is awarding a cash
grant in lieu of the Investment Tax Credit (ITC) equaling 30% of the
installation cost - paid to the solar system owner within 60 days after
installation.
Depreciation (MACRS) Businesses
may also qualify for tax benefits under the federal Modified Accelerated Cost-Recovery System (MACRS) resulting from the rapid
depreciation of the solar asset. This can amount to approximately 30%
over the first six years with 50% of the depreciation being available
in the first year. (This 50% option expires at the end of 2009.)
Revenue and Savings
Sales of Solar Renewable Energy Certificates (SRECs) These
are awarded by each state to producers of renewable energy. The
monetary value and amount of certificates generated varies by state.
The annual sale of SRECs helps to amortize the cost of the solar system and contributes to business revenue once it's paid off (typically within 5 years). (More)
Energy Savings From its date of installation, a solar electric system
will reliably produce electricity during daylight hours for more than
thirty years. As the cost of utility supplied electricity inflates, the
actual energy savings from the solar system will also increase.
