Incentives & Pricing
Tax Credits & Incentives
Federal Business Solar Investment Tax Credit (IR Code § 48)
Businesses that install a commercial solar electric system in the U.S. between January 1, 2009 and December 31, 2016 will receive a credit against their federal income tax liability (including AMT) in the amount of 30% of the net installed cost after eligible utility rebates.
See Form 3468.
Accelerated Depreciation (IR Code § 168)
Under the federal Modified Accelerated Cost-Recovery System’s (MARCS) five-year accelerated depreciation schedule, businesses may recover investments through depreciation deductions in property placed in service after 1986. The amount of depreciation taken each year is higher during the earlier years of the solar system’s life.
See Form 4562.
Federal Renewable Energy Grants in Lieu of Tax Credits
Beginning in July 2009, commercial project developers may opt to apply for a cash grant from the U.S. Department of Treasury instead of claiming the commercial tax credit. The grant would be equal to 30% of the basis of the property for solar energy, which is the same amount developers would have been able to claim as a tax credit.
Applications must be submitted by October 1, 2011.
New York State Property Tax Exemption (NY CLS Article 4 § 487)
Provides a 15-year real property tax exemption for solar energy systems constructed in New York state, meaning the added value of the solar system will not further increase the property tax of the building.
Utility Rebates
Long Island Power Authority - Solar Entrepreneur Program
The LIPA Commercial Solar Entrepreneur tiered rebate structure will be $2.00 per watt up to 50 kW with a maximum of $100,000; and $1.00 per watt for greater than 50 kW to 100 kW PV systems with a maximum of $50,000. The maximum rebate is $150,000 (100 kW) or 50% of the installed costs, whichever is less.(www.lipower.org/solar)
NYSERDA - PV Incentive Program
NYSERDA will provide $1.75 per watt up to a 50 kW system for a maximum rebate of $87,500 or 50% of the gross installed cost, which is less. (www.powernaturally.org)
The above is a summary of the available tax credits and rebates for which you may be eligible. It should not be misconstrued or misinterpreted as professional tax advice. EmPower is not a tax advisor and recommends speaking wtih a professional tax advisor or accountant to determine eligibility.Sample Pricing
Note: These sample systems represent the typical pricing for a retro-fit installation and are not specific offers. System samples assume a full South-facing roof with no shading and a 5-degree ballasted mounted system. The net cost and annual production for each system will differ depending on a number of variables. Estimates of annual production value and return on investment assume a cost per kilowatt-hour of $0.21 and an average electric rate increase of 5% each year. Federal and State tax credits are calculated on the post-utility rebate amount. Please consult with your tax advisor to verify that you are eligible for these tax credits.
