Solar Tax Credit Extended Through 2022
Here’s why 2021 is the best time to invest in solar for your commercial property and business
If you’ve been thinking of going green, here’s some good news. The solar investment tax credit (ITC), which was scheduled to drop from 26% to 22% this year, will remain at 26% for two more years. This means that all solar energy projects that begin construction this year and next will be eligible to receive the 26% tax credit. The credit will drop to 22% in 2023 for all market segments, including commercial and residential, then down to 10% permanently for the commercial and utility markets in 2024. The tax credit for residential properties will come to a close in 2024.
Why Business Owners Should Invest in Solar
Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000% – creating hundreds of thousands of jobs and investing billions of dollars in the U.S. economy. For commercial property owners, solar benefits the bottom line with the ITC equal to 26% of the basis that is invested in an eligible solar property that has begun construction. But beyond the economic benefits, solar is the smart choice for our environment.
Benefits of Direct Ownership Over Shared Solar
Most businesses are looking to offset some or all of their electricity use with solar power, making solar an ideal economic and environmental solution. Simply put – solar is good business. Consumers and employees alike value sustainability now more than ever.
Property owners have a choice when it comes to investing in solar. The two most common choices are direct ownership through installing a solar panel system on your building, or a shared solar program which allows business owners to lease solar power generated by community grids without installing a system.
Direct Ownership Solar
Direct ownership, or installing a solar panel system at your commercial property, gives the owner complete control over their solar investment. Solar systems can be customized to your needs – you can power a percentage of your building’s electricity use, offset usage in common spaces, or provide car canopies and electric vehicle charging stations. One of the biggest benefits of direct ownership is the tax credit and rebates. In addition, a solar array investment often increases property values and generates an average return-on-investment in less than ten years.
Shared Solar Programs
A shared solar program allows home and property owners to subscribe to a solar energy project in their community. Participants receive a credit on their utility bill for their portion of the clean energy produced. While this is an easy way for businesses to go green without footing the upfront cost of installing solar panel systems, the availability of shared solar is limited, and businesses do NOT receive the benefits from ownership like tax credits or reduced energy costs.
Solar is an investment in the future of our state. Florida is leading the way in solar energy, ranking #4 nationally for solar. The typical solar investment can see a return on investment (ROI) in five to 10 years when using the ITC and accelerated depreciation. Advanced Green Technologies value ROI based on energy consumption combined with intangibles such as preserving the rooftop and other additional benefits.
Ready to grow your bottom line and increase your building’s value with solar? For a free solar evaluation, call (800) 638-6869 or click here.