COMMERCIAL SOLAR ELECTRIC SYSTEMS
Oregon is a state that is very friendly towards businesses who want to install solar electric systems. While the business energy tax credit has almost gone away, the combination of rebates, and federal tax credits give a company the ability to “lock” in your energy costs far into the future. Additionally the cost of the solar system can be deducted in a accelerated fashion using the IRS’s MACRS accounting system.
Installing a solar electric system can help your company make a bold statement about your commitment to sustainable business practices and social responsibility. A solar electric system can have a strong impact on your bottom line by reducing your monthly operating costs and improving your cash flow. It will protect your company from rising energy costs and allow you to direct your tax dollars as an investment into your business rather than sending them off to be spent as politicians prefer.
There are many very strong financial incentives for the installation of a solar electric system in Oregon.
The Energy Trust of Oregon is offering businesses in Pacific Powers utility territory a cash rebate of $.86 per watt of installed system capacity for the first 35kW and between $.86 and $.35/watt for systems between 35 and 200kW. This rebate is an upfront cash incentive designed to directly reduce the cost of installing a solar system. These rebates are capped at $76,000.
In the City of Ashland a rebate of $.75per watt of installed capacity is offered for businesses who install a solar electric system. There is a $7,500 cap on this credit. Both of these rebates are only offered in conjunction with grid connected solar electric systems in the respective service territories of Pacific Power and the City of Ashland.
FEDERAL TAX CREDIT
The federal government is currently offering a tax credit to businesses who install solar electric systems to the tune of 30% of the full cost of the system. There is no cap on this tax credit.
Currently the IRS allows businesses to depreciate their solar electric system in an accelerated manner. Using the MACRS (modified accelerated cost recovery system) the business owner may depreciate their costs of installing a solar system in as little as 1 year. Your accountant can help to guide you towards the best way to use this to your advantage.
More information regarding commercial solar systems and incentives can be found at: www.dsireusa.org or by calling Oregon Solarworks at 541-299-0402 or by email us at our email