For businesses, the financial return has never been better on solar electric installations. This has been due, in good part, to the existence of two incentives – the Treasury Grant and MACRS Depreciation. Unless federal legislation is passed extending these programs, they will phase out at the end of 2010.
What this will mean is that the Treasury Grant will revert to a Federal Tax Credit (making financing of systems more difficult), and the Accelerated Depreciation will revert to regular depreciation (effectively extending the payback period). For additional information on these incentives and how they affect the cost of solar, see our Cost of Solar – Commercial guide.
The good news is that it is not too late to take advantage of these incentives. As long as a contract is in place and materials are ordered and paid for by the end of the year, the project will be included in the incentive programs, even if the project has not been completed at that time. Microgrid can help you assess the feasibility of solar for your business, including an in-depth financial analysis. Please contact us to arrange a consultation.