Incentives for commercial solar projects vary from state to state, and it can be cumbersome to navigate federal and state resources on rebates and tax credits. The information below is a basic guide to understanding the most common solar incentives for your business.
Our team of Energy Consultants and Project Financiers are up–to–date on current and pending legislation affecting the total cost of going solar on your facility.
For more information on the commercial solar incentives available in your state, please visit your state’s government websites or contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
Federal Tax Credits
In addition to state rebates and incentives, the Federal government offers a 30% Treasury Grant (Investment Tax Credit or ITC) on solar power systems, and allows businesses an accelerated depreciation schedule over 6 years.
The American Recovery and Reinvestment Act of 2009 now allows tax–paying entities the option to receive the ITC as a grant from the U.S. Treasury Department instead of taking it as a tax credit for projects which are started in 2010 and placed into service on or before December 31, 2016.
For more information on the Federal ITC, please contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
State Incentives
California
The State of California offers substantial rebates for both large and small commercial solar electric systems through the California Solar Initiative (CSI). Depending on the size of your facility, you will qualify for either the Expected Performance Based Buydown (EPBB) or a Performance Based Incentive (PBI) program. These rebates can cover as much as 20% of the total system cost.
Expected Performance Based Buydown (EPBB)
This program offers upfront rebates for systems less than 50kW in size. The incentive levels decline over time as the aggregate capacity of PV installations increases. For current incentive levels for the utility in which your facility resides, check the CSI website’s Statewide Trigger Point Tracker.
Rebates are awarded as a single, up–front payment based on the expected performance of the solar PV system, which is determined by a number of factors, including system location, orientation, shading and size.
Performance Based Incentive Program (PBI)
This program offers rebates based on energy production over the course of 5 years. Similar to the EPBB, the incentive rates decline over time as the aggregate capacity of PV installations increases. Rebates are paid to the system owner monthly, based on reported energy production. This program is designed to benefit entities installing larger commercial projects. Typically, the PBI will cover more than 30% of the installed system cost. For some businesses, this type of program may be more advantageous than the upfront rebate offered by the EPBB.
The level of both of these rebate programs will decline as the program reaches scheduled participation milestones. Therefore, the longer a business waits to install a solar electric system, the lower the rebate will be. This will raise the total out of pocket cost of going solar for the system owner.
California Public Utilities Commission (CPUC) administrators are:
- Pacific Gas & Electric (PG&E)
- California Center for Sustainable Energy (CCSE) for San Diego Gas & Electric
- Southern California Edison (SCE).
A Borrego Solar Energy Consultant will be able to determine which program is best for you, based on the specifics of your business.
For more information on the California State Rebates, please contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
Additional programs in CA for specific building type, location, or purpose:
MASH Program: The Multi–family Affordable Solar Home program is one of the first low–income subsidies available to Affordable Housing Developers looking to retrofit and update their completed Affordable Housing Developments.
With a fund of $108.34 million, the program offers either upfront incentives at the rates mentioned below as part of the Track 1 application process, or the opportunity to compete for higher incentives through a grant program labeled as Track 2.
The MASH program is available to participants installing solar electricity on existing Affordable Housing facilities. The rebate is for $3.30/watt for PV systems offsetting common area loads, and $4.00/watt for systems offsetting tenant loads. With virtual net metering (VNEM) tariffs developed by the utilities, MASH participants will be able to allocate the renewable energy credits from a single solar installation to multiple meters/accounts at the same site address.
This program is currently set to expire December 31, 2015.
New Solar Homes Partnership: The NSHP is a component of the California Solar Initiative — a strategic plan to bring CA closer to a cleaner energy future while lowering the cost of solar for builders, consumers, and affordable housing developers. To qualify as a partner in the program, developers must exceed current Title 24 Building Energy Efficiency standards by at least 15% and meet basic location requirements. The incentives will offset both the residential and common areas of new Affordable Housing Projects by $3.30/watt.
For more information on the New Solar Homes Partnership, please contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
San Francisco Solar Energy Incentive Program: Through the San Francisco Public Utilities Commission (SFPUC) rebates are available to businesses installing solar photovoltaic systems.
Commercial and industrial solar PV installations receive a capacity-based incentive of $1,500 per kW installed up to a maximum of $10,000.
Starting early in 2009, commercial buildings owned by non–profits will have no cap. Multi-unit residential buildings operated by non-profits may receive up to $4,500 per kW up to a maximum of $150,000 with an additional $100,000 available on a matching basis.
The San Francisco Solar Energy Incentive Program can be combined with the state CSI and Federal ITC.
For more information on the San Francisco Solar Energy Incentive Program, please contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
Sonoma County Energy Independence Program: This is a loan program available for commercial and multi–family solar PV installations. The loans have fixed rates at or below the available rates participants could otherwise receive from financial institutions. The loans are a voluntary assessment on property taxes and paid over a specific period of time based on loan size. The loans are tied to the property and not the owner.
For more information on the Sonoma County Energy Independence Program, please contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
Massachusetts
The Commonwealth Solar program in MA has temporarily stopped awarding rebates as it plans for its transition to an S–REC model. Details about the program are expected to be released in November 2009. Borrego Solar has been actively participating in the public comment process for the Solar RPS Carve Out, which is targeted to be launched in January 2010. We are very excited for the potential of solar in the state when the guidelines are released and will post that information to this website as it becomes available. In the meantime, more details can be found on the DOER’s Solar Power web page at www.mass.gov/doer.
For more information on the commercial solar incentives available in your state, please visit your state’s government websites or contact one of our Energy Consultants at 888-898-6273 and press 2 to speak with an associate.
Federal stimulus dollars, new progressive programs, and changes to existing policies, make solar incentives very hard to track. When in doubt, contact us for more information.
Contact us to schedule a free site evaluation.Borrego Solar will…
- Evaluate whether your building is right for solar
- Determine which rebate program is best for you
- Help you with the application paperwork