Is your business considering making the switch to solar energy? A solar installation from Fresh Coast Solar can greatly reduce your operating costs. There are great opportunities to benefit from clean, affordable solar energy in Illinois. Here are some things you should know:
Under the Business Energy Investment Tax Credit, 30% of the installed cost of a solar installation for your business can be accounted for as a tax write-off. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar. If your tax credit exceeds your tax liability the excess credit may be carried forward for a period of up to 20 years.
Incentive Value: 30% of System Costs Year 1
As a business owner, you may file an IRS form 3468:
(Disclaimer: Incentives under the Future Energy Jobs Act have yet to be finalized, however, it is important to stay up to date as to how this bill may impact the economics of your project.)
At the end of 2016, Illinois’ General Assembly passed one of the most progressive pieces of energy legislation in the country, the Future Energy Jobs Act. While pricing for incentives has not been finalized, it is important to consider that how this bill may affect your commercial solar installation, most notably the highly favorable SREC incentives under the Adjustable Block Program.
A REC represents the property rights to the environmental, social, and other nonpower qualities of renewable electricity generation. A REC, and its associated attributes and benefits can be sold separately from the underlying physical electricity associated with a renewable-based generation source. As renewable generators produce electricity, they create one REC for every 1,000 kilowatt-hours (or 1 megawatt-hour) of electricity placed on the grid.
The Adjustable Block Program lays out a framework for estimating your system’s output over 15 Years. You are then credited for the value of 15 years worth of SREC’s over the first 5 years of your installation. While the value of the SREC’s has yet to be finalized, as the legislation currently stands they are highly favorable and may cover over 35% of your system costs.
Incentive Value: Depending on Variable Factors, Often >35% of System Value Credited Over the First 5 Years
Smart Inverter Rebate
While they are yet to be set in stone, pending provisions under the Future Energy Jobs Act require ComEd and Ameren to offer non-residential, net-metered customers a rebate of $250 for every 1kW/DC of solar PV installed.
Inverters are the component of your PV system that invert the DC energy produced by your solar panels to AC energy used by your business. Smart Inverters are PV Inverters that are actively connected to the grid, supporting its frequency and voltage. The Grid is designed as a centralized generation source; as solar PV generation grows, Smart Inverters help reduce the need for grid upgrades.
Solar Panels installed by Fresh Coast Solar have a production warranty of 25 years. Most other major system components also carry a 25-year warranty, or the option to extend.