COMMERCIAL SOLAR ELECTRIC SYSTEMS
Southern Oregon is a great place for businesses who want to install solar electric systems. There are a number of incentives available to sifnificantly offset much of the cost of “going solar.” Installing a solar electric system essentially gives you the ability to “lock” in your energy costs.. Solar PV systems can be deducted in a accelerated fashion using the IRS’s MACRS accounting system. In some cases the cost of the system can be deducted in one year. 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 $0.45/watt – $0.25/watt up to $25,000 (100 kW max.) . This rebate is an upfront cash incentive designed to directly reduce the out of pocket cost of installing a solar system. More info can be found here.
In the City of Ashland a rebate of $.50 per 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. This tax credit is scheduled to phase out. For tax year 2019 it is 30%, tax year 2020 it is 26%, tax year 2021 it is 22%, tax year 2022 it is 15% and 2023 tax year it is 10%. NOW is the best time to install.
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 here, or by calling Oregon Solarworks at 541-299-0402 or by email us at our email