SAVE MONEY WITH SOLAR
The economics and inside track to save money on solar projects.
An unmatched investment in the future.
We’ve installed solar projects that will recoup 100% of their initial investment in 2 to 12 years. After payback, a professionally-designed and installed system will continue to operate for decades. Every watt you generate after payback is growing dividends. As energy prices rise and volatility rattles financial markets, the true long-term payback of a renewable energy system has a potential unmatched by other investments.
Energy that pays you back.
Energy Concepts is up-to-date on the available incentives, solar rewards and more. We get out our calculator and do the homework for you.
Our financial analysis includes:
- Tax credit and depreciation
- Rebates
- Grants
- Electrical energy savings
- Future electric rate escalations
- Third-party solar generation modeling
We demystify the financials for you!
This is a great time to go solar, especially for businesses! The following are some of the incentive programs providing the most savings to you. Last updated 01/12/2024
Tax Credits and Depreciation
Federal Solar Tax Credits for Businesses and Homeowners
The bottom line: Save 30% through the federal tax credit with bonuses up to 50% for qualified projects. Non-profits can access this through the direct pay option. Tax credits lower tax liability, which is analagous to cash in your pocket.
From energy.gov: “There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems (see the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics for information for individuals):
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.[1]
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.[2]
Generally, project owner’s cannot claim both the ITC and PTC for the same property.” Contact us or see energy.gov for more details.
Federal Depreciation
The bottom line: Businesses can depreciate up to the full value of solar photovoltaic system over the course of 5 years to reduce their tax liability.
A Section 179 deduction allows a business to depreciate up to the full value of the system in the first year.
The Special Depreciation Allowance allows for depreciating a percentage of the system in the first year then depreciating the remaining value over the following 5 years.
MACRS depreciation allows for depreciating the system on a 5 year schedule.
Contact us or see IRS Publication 946 for more information.
State Depreciation
The bottom line: States also allow businesses to depreciate the value of a solar photovoltaic system, but the rules vary by state.
Minnesota: You get 20% of the bonus depreciation allowed on your Minnesota return in the year the asset is placed in service. You must add back the remaining 80% to your Minnesota taxable income. You recover this amount when you subtract it from taxable income over the next five years.
Rebates
Focus on Energy
The bottom line: Save up to $50,000 for businesses and $1,000 for residents installing a solar photovoltaic system.
Focus on Energy is a Wisconsin program. Contact us or visit the Focus on Energy website for more information and to see if your utility participates.
River Falls Municipal Utilities (RFMU)
The bottom line: Businesses save up to $5,000 and residents save up to $1,000.
RFMU matches the Focus on Energy rebate provided the match plus the FoE rebate does not exceed 75% of the total cost. Contact us or see the RFMU website for more details.
Grants
Rural Energy for America Program (REAP)
The bottom line: Businesses and agriculture producers can save up to 50% of the cost of their solar energy system.
Businesses must be located in a rural area (population less than 50,000) and meet the small business qualification as defined by their NACIS number. Contact us or see the USDA website for more information.
Solar for Schools – MREA
The bottom line: Schools can save up to $20,000 on the cost of solar panels.
The Solar on Schools grant provides public WI K-12 schools and colleges access to an in-kind module grant, valued up to $20,000. Applicants are eligible to apply for one grant per district installing solar. Grant applicants must demonstrate project development and the ability to install their PV system within 12 months of being awarded the grant. Contact us or visit the MREA website for more information.
Solar for Good – Renew Wisconsin
The bottom line: Non-profits can be awarded 50% of panels or $150 per kW for solar panel installations. For solar canopies, grants range from $6,000 – $15,000.
Through a generous partnership with the Couillard Solar Foundation, RENEW Wisconsin awards grant-funding or solar panels to nonprofit organizations, helping them switch to clean, renewable, solar energy.
In order to receive an award, the organization must be a registered nonprofit organization located in Wisconsin, be in good financial standing, able to accept donations, and own its building or be able to make necessary changes to its roof or property to accommodate solar.
Please note that this program is designed to fund mission-based organizations. Solar for Good grant recipients should demonstrate service and impact in several key sectors. Contact us or visit the RENEW Wisconsin for more information.
