Costs of commercial solar

In comparison to residential solar systems, commercial solar projects usually cost more than most residential systems due to their size. There is no one size fits all, and while some small businesses may find great value in a $60,000 commercial system, large industrial facilities or solar farms can cost over $1 million to set up.

There are still several tax credits, rebates, and incentives available for commercial solar panel systems just as they do for residential solar panel systems.

COMMERCIAL SOLAR PANEL INCENTIVE

Federal solar tax credit

The federal solar investment tax credit (ITC) allows a deduction of 30% of the cost of a commercial solar installation.

Bonus depreciation through MACRS

Under MACRS, businesses can take advantage of bonus depreciation to claim tax deductions for the depreciation of eligible solar equipment. This incentive applies to commercial solar installations completed before January 1st 2027, allowing companies to recover their investment within five years. Since 2008, bonus depreciation has been incorporated into MACRS, enabling businesses to allocate the full depreciable value in just one year. Essentially, MACRS provides a means for businesses to expedite their return on investment by utilizing tax deductions.

Net metering

Net metering, or NEM, is a benefit available to businesses that produce their own energy through solar panels. Similar to residential customers, these commercial properties can sell excess energy back to the grid and receive credits from their utility company. These credits can then be used to offset energy costs during times when solar production may be lower, such as at night or on cloudy days. However, net metering is becoming less common nationwide, which could affect the amount of savings for those currently utilizing this perk in the future.

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