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SOLAR FOR COMMERCIAL & INDUSTRIAL CUSTOMERS

No-upfront cost & capture the tax credit

Wineries, food storage, hotels, agricultural, warehouses, office complexes, retail stores, restaurants, entertainment venues can all reduce the electric bill with solar with no upfront cost while capturing the tax credit

Several Options to get your business go solar

Solar Carports: not only generates electricity for your facility but it provides shade. Many organizations prefer this additional perk called "shade". We utilize horizontal digging to avoid cutting and opening up the exisiting parking lot. The disruption to your business is minimal.  

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Ground Mounted Solar. A great option if you have the space available. Because a ground mount system can be oriented and tilted as needed, it can obtain the maximum yield. We can make with ballasts on top of the ground in case it needs to be moved in the future or attached with concrete less solution like pile driving.

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Attached Rooftop Solar. This method of installation can be used in most composition and concrete tile roofs. It is a simple and fast installation. The panels can only be located on those roof planes that are facing east, west or south.

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Non penetrating ballasted rooftop solar. A great solution for flat TPO or rolled comp roofs. It requires no or minimal penetrations. The solar panels are held on the roof by the ballast installed. This method typically adds no more than 5 pounds per square foot. Our structural engineer will eventually evaluate if your roof is suitable for this installation method.

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Solar on Metal Roofs. Depending on the type of metal roofs we can clamp the solar support structure to the standing seam of the metal roof. 

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60% Government Incentives

Great news if you go solar because one of the oustanding benefits of solar is that there are 2 great solar incentives to lower your overall cost

Federal Investment Tax Credit (ITC)  is dropping!

A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. 

- 30% for projects that begin construction in 2019
- 26% for projects that begin construction in 2020
- 22% for projects that begin construction in 2021
- After 2021, the commercial credit drops to a permanent 10%

Eligibility for the ITC is based on a “commence construction” standard. The IRS issued guidance in June 2018 that explains the requirements taxpayers must meet to establish that construction of a solar facility has begun for purposes of claiming the ITC.

100% Bonus Depreciation until end of 2022

The U.S. tax code allows for a tax deduction for the recovery of the cost of tangible property over the useful life of the property. Qualifying solar energy equipment is eligible for a cost recovery period of five years. This means the owner is able to deduct 85 percent of his or her tax basis.

The Tax Cuts and Jobs Act of 2017 (TCJA) increased the bonus depreciation percentage to 100 percent for qualified property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023.

Solar Financing Options

The for profit sector has a variety of options to finance a solar projects. If you are planning to pay significant taxes in the current year you should consider all options. If you have a tax planning strategy that allows you to pay low income taxes then consider the option where the providers take the tax incentives (you get the benefit indirectly through a lower financing cost).

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1

Just by the solar power (PPA)

Under a PPA you only buy the electricity generated. If the system does not work, you don't pay. Somebody else maintains the solar system. This is 100% off balance sheet. Under this scenario the PPA provider gets the tax credit and depreciation. Perhaps the only OFF balance sheet option.

2

PACE - County funded

The county can fund your solar project. You will pay back the county via your property taxes. The term can be 5, 10, 20 and in some cases 25 years. In this case, you get the federal tax credit and the depreciation.

3

Capital Lease

This is a lease where you take the tax credit and depreciation. Typically at the end of the term there is a balloon payment. Terms are 5, 7 and 10 years. This is "on" balance sheet with the new FASB rules.

4

Operating Lease

Under this operatin lease, the lease provider gets the tax credit and depreciation. SImilar to a capital lease at the end of the term you would buy the solar system for 20% of the original value or fair market value whichever is higher. This is "on" balance sheet with the new FASB rules.

5

Bank Loan

A bank may provide a commercial loan with 5, 7 or 10 year term. The amortization may differ from the term requiring a balloon payment at the end of the term. This is "on" balance sheet with the new FASB rules.

Some of our Projects

Let's see how much your organization can save!

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