Solar – Caldus Energy

Solar is the future

Posted on 06/16/202406/17/2024 by D.Smith

NextEra is one of the largest owners of gas fired power plants in the US.

When asked this week if gas or renewables will meet the country’s growing electricity demand – their CEO answered thusly:

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The CEO said he expects an almost 40% rise in US power demand over the next two decades, compared with just 9% over the previous 20 years. Renewable energy will meet most of the consumption boost because new gas-fired plants are much more expensive, take too long to connect to the grid and have to be supplied by hard-to-build gas pipelines, he said.

He said that adding battery storage to wind and solar farms can make those carbon-free sources almost as reliable in providing around-the-clock power as fossil fuels are.

“If I want to pay double, I can go with a gas-fired plant,” Ketchum said.

Tech Firms Ask NextEra for Enough Electricity to Power Entire Cities

NextEra Energy Inc

By Josh Saul and Will Wade

June 12, 2024 at 12:46 PM CDT

Technology companies are so desperate to build massive data centers in the US that they’re asking clean-energy giant NextEra Energy Inc. to find them locations with enough electricity to power entire cities.

“We’ve had some come to us and say, ‘Can you show us sites that can accommodate 5 gigawatts of demand?’” John Ketchum, Florida-based NextEra’s chief executive officer, said in an interview at Bloomberg News in New York on Wednesday. “Think about that. That’s the size of powering the city of Miami.” Ketchum declined to name the companies.

That much power — roughly the equivalent of five nuclear reactors, or enough to power almost 3 million homes — would require a mix of new wind and solar farms, battery storage and a connection to the grid, Ketchum said. He added that finding a site that could accommodate 5 gigawatts would take some work, but there are places in the US that can fit one gigawatt.

Power consumption in the US is soaring, driven in part by new data centers needed for artificial intelligence, high-speed streaming and remote work. A boost in domestic manufacturing and the electrification of vehicles and other sectors is also fueling the jump. While the demand surge is fueling a boom in clean-energy generation, it’s also spurring plans for new fossil-fuel plants, complicating climate goals.

The demand spike has even led NextEra to consider restarting the Duane Arnold nuclear plant in Iowa, which shut down in 2020 after its biggest customer opted to exit its power-purchase agreement. More than a dozen US reactors have shut since 2013 as operators struggled to compete against cheaper power from natural gas and renewables, but with consumption soaring there’s now talk that some of them could reopen.

Ketchum said he’s had inquiries from potential data center customers that could be interested in taking advantage of the 600-megawatt Duane Arnold reactor. “I would consider it, if it could be done safely and on budget,” he said.

The CEO said he expects an almost 40% rise in US power demand over the next two decades, compared with just 9% over the previous 20 years. Renewable energy will meet most of the consumption boost because new gas-fired plants are much more expensive, take too long to connect to the grid and have to be supplied by hard-to-build gas pipelines, he said.

He said that adding battery storage to wind and solar farms can make those carbon-free sources almost as reliable in providing around-the-clock power as fossil fuels are.

“If I want to pay double, I can go with a gas-fired plant,” Ketchum said.

NextEra is the world’s largest non-government-backed developer of wind and solar energy, behind only major Chinese state-owned companies. The company has a pipeline of about 300 gigawatts of renewable and storage projects.

How does the MACRS Incentive for Commercial Solar Power Work?

Posted on 12/09/202203/10/2024 by D.Smith

In this article we will discuss how the MACRS works for commercial solar power systems in the US. We are not tax experts, and this is not intended as professional tax advice. If you plan to depreciate a business-owned solar array according to the MACRS, the best recommendation we can give is contacting a Certified Public Accountant (CPA).

Business-owned solar power systems are eligible for two nationwide incentives in the US: the Investment Tax Credit (ITC) and the Modified Accelerated Cost Recovery System (MACRS).

Thanks to the MACRS, you can write off the asset value of a solar PV system in only five years. This depreciation counts as a tax deductible expense, and the cash flow of your solar investment improves.

You can combine the ITC and MACRS, but you must subtract half of the ITC from the solar asset value. For example, if your solar installation gets the 26% tax credit available in 2022, you can depreciate 87% of its value over five years (after subtracting 13%).

The Tax Cuts and Jobs Act of 2017 (TCJA) provides a 100% depreciation bonus for solar power systems placed in service before 2023. Businesses have a major incentive to go solar before the end of 2022, since the federal tax credit also drops from 26% to 22%.

If you’re considering solar power for a commercial or industrial building, you have most likely heard about the Investment Tax Credit (ITC). Thanks to the ITC, you can claim 26% of your solar PV system costs as a federal tax credit on your next declaration. Being a federal incentive, the ITC is available for solar panel systems everywhere in the US.

The ITC can be claimed for residential and commercial solar power systems, but there is an additional incentive for companies: the Modified Accelerated Cost Recovery System (MACRS). Businesses can write off (depreciate) their solar power investments in only five years under the MACRS, even when solar panels and other system components have a much longer service life. This accelerated depreciation is a tax-deductible expense, which improves cash flow during the first five years after going solar.

Which Solar Power Systems Qualify for the MACRS?

The Modified Accelerated Cost Recovery System is a business incentive, which means it doesn’t apply for residential solar systems. The MACRS is available for the commercial, industrial and agricultural sectors, and several energy sources and technologies qualify for the benefit:

Solar Photovoltaic
Solar Water Heat
Solar Space Heat
Geothermal Electric
Solar Thermal Electric
Solar Thermal Process Heat
Wind Power
Biomass
Geothermal Heat Pumps
Municipal Solid Waste
Combined Heat & Power
Fuel Cells using Non-Renewable Fuels
Landfill Gas
Tidal Power
Wave Power
Ocean Thermal
Geothermal Direct-Use
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Microturbines

Solar panel systems and some other renewable technologies are classified as five-year properties under the MACRS, which means their cost can be written off within that time frame. This improves the cash flow projection for renewable energy systems, since accelerated depreciation counts as tax-deductible expense.

Eligible systems placed in service before January 1, 2023, get an even greater benefit: 100% bonus depreciation under the Tax Cuts and Jobs Act of 2018. Solar panels can be installed relatively quickly, compared with other types of renewable generation equipment. If you’re considering solar panels for a commercial or industrial building, you can claim this benefit by acting fast and completing the project before the end of 2022. Your solar installation will also benefit from the federal tax credit before it drops from 26% to 22%.

Can a Company Combine the Solar Federal Tax Credit and MACRS?

The 26% federal tax credit is a nationwide incentive for solar power systems in all market segments. On the other hand, the MACRS is exclusively for projects in the commercial, industrial and agricultural sectors. A commercial solar installation can benefit from both incentives, but there are certain rules you must follow.

Since you get 26% of your solar investment back within a year, the IRS has decided to limit the maximum asset value you can depreciate under the MACRS. In the case of solar power, the asset value you can write off (depreciable basis) is equivalent to its total value minus 50% of the federal tax credit. The ITC will be gradually reduced in 2023 and 2024, which means the depreciable basis under the MACRS will actually increase. The following table summarizes how this works:

Considering a commercial solar system with a project cost of $1,000,000, these percentages would result in the following dollar values:

The MACRS has been available since 1986, and it has been a key incentive for renewable energy investments along with the federal tax credit. Depending on the type of asset, the depreciation period under the MACRS ranges from three to 50 years. Renewable energy systems normally qualify for five-year or seven-year depreciation, depending on the specific technology used in the project.

Green Facts for your Business

Posted on 12/06/202203/15/2024 by D.Smith

A growing number of businesses are choosing to go green. Taking steps to make their workplaces environmentally friendly by introducing materials and operational methods that are less harmful to the environment than traditional methods and materials.

Some of the reasons for the switch:

Costs

Going green for businesses used to be costly in the initial stages. Installing new equipment that produces less waste or buying new appliances that cut down on energy use can be expensive. However, with new tax incentives, accelerated depreciation and savings over time on the monthly energy bill all add up to significant savings.

Reducing & Recycling Materials

Strategies — like utilizing email instead of using paper to fax, purchasing reusable ink cartridges and recycling plastic and glass in the workplace — significantly lower waste. Printing on both sides of a sheet of paper before throwing it away reduces paper use by up to 50 percent. For businesses spanning a large office space, consolidating networks and setting up wireless networks save on power and cabling requirements.

Priorities

Some priorities of manufacturers in going green are sustainable packaging, water and environment stewardship, and climate and energy protection. Some large companies have been continuously involved in sustainability-focused agendas, while others have answered computer waste disposal issues by setting up large recycling plants.

Customer Relations

Going green can draw more customers to your business. Businesses that promote environmentalism as part of their mission statement can gain loyal customers and protect the environment.

For more information on what commercial solar can do for your business .
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Tag: Solar