Changes in tax laws, combined with a new utility incentive program, and bottoming out prices on solar equipment, have set up 2011 to be an excellent time for businesses to install solar.
The 2010 tax-cut extension bill shortens the schedule on depreciating a solar asset, now allowing for 100% depreciation in the first year after installation.
Also new for 2011 is a solar incentive from Ameren Missouri for the purchase of Solar Renewable Energy Credits (SRECs). Combining this new incentive with the existing Solar Rebate, 100% Depreciation, and the Federal Treasury Grant, businesses will realize an approximate 85% reduction in the first year cost for solar!
For businesses small and large, solar can be a strong investment: positive cash flow every year, short breakeven, increased Net Operating Income, and a double-digit Internal Rate of Return. Energy costs went up over 20% last year and will continue to go up, so no longer is energy incidental to your Balance Sheet. Establishing an ongoing energy strategy that includes renewable energy and efficiency can help manage “utility risk” while offering improved financial performance for facilities.
This is the best time of year to make plans for solar installation. A number of solar incentives are scheduled to sunset at the end of this year. Even though it is cold up on the roof, planning and scheduling now can ensure you get the system installed this year before the tax laws change again for 2012. Contact Microgrid to learn about the incentives and the improved financial picture for solar.