What Are Solar Incentives?
Curious about going solar and what it could mean for your business?
If your organization is like many others, finding effective ways to meet your bottom line is everything. When it comes to the energy keeping your business thriving, controlling your long-term costs is critical. And if renewables are appealing to your company, solar can offer numerous benefits, like participating in a sustainable energy future and promoting your business as socially-responsible.
What’s contributing to the growth of solar?
Have you noticed more solar arrays being installed in your area? There are a variety of reasons for the increased interest in solar. Here, we focus on one of the aspects contributing to the growth – solar incentives. Learn more about what they are and ways they can be applied to make solar accessible.
So, what are solar incentives?
Solar incentives are basically rebates or payment you receive in exchange for installing a solar energy system. These can vary significantly by state. The solar investment tax credit (ITC) is an incentive program offered by the federal government. As part of the program, solar installations (both commercial and residential) qualify for a 30% tax credit. Regardless of how you choose to pay for your system [link to solar PPA ERL that discusses available options], there are ways to leverage these incentives.
Solar Renewable Energy Credit (SREC): In eligible states, an SREC is created for each MWh of solar generated. The value of SRECs generally fluctuate in a market.
Tariff-Based Incentive Program: In this program, incentives are paid based on the production of a solar energy system and the value is set for 20 years.
What’s currently happening with incentives on a state level? Below, we’ve highlighted two with some exciting changes on the horizon.
What’s new in the Bay State?
Katie Rever, IGS Solar’s director of legislative and regulatory affairs, explained that Massachusetts is currently transitioning from an SREC (solar renewable energy credit) market to a tariff-based incentive program. “Regardless of your electricity use, this change helps to make solar even more accessible,” she said. Massachusetts has committed to doubling installation numbers under the program, which will help bring more stability to the market.
What’s new in the Prairie State?
At the end of 2016, Illinois passed a law that will help grow solar demand in the state. Illinois has set a target to generate 25% of their energy from renewable sources by 2025. As agencies begin implementing it across the state, the impact is still being determined.
How does IGS Solar leverage solar incentives?
With our third-party financing model using a Power Purchase Agreement (PPA), we own, operate, and maintain solar energy systems on behalf of our customers.
By financing systems in states that are favorable for solar, we leverage the tax credits and incentives in order to make solar more accessible to businesses like yours.
IGS Solar has plenty of experience putting all of the pieces together for our customers, from financing, to assessing and managing risk, to quality control, to even helping to shape the future of solar through our legal and regulatory activities.
The future of solar is bright, and we’d love to help you understand what’s available and how this renewable energy can make a positive difference in the way you power your business.