NEW INCENTIVES
Help pay 30% of your solar project through Federal Tax Incentives: Nice & bold
MACRS Depreciation of Solar Panels
Normally, the depreciable life of solar panels is 85% of the full solar system cost which may be depreciated roughly as follows: Year 1 – 20%, Year 2 – 32%, Year 3 – 19.2%, Year 4 – 11.5%, Year 5 – 11.5%, and Year 6 – 5.8%. Are you interested in a free solar consultation to show you what the numbers could look like?
As a large purchase that will be used overtime, a solar system’s cost is deducted from taxable income via a so-called 5 year ‘depreciation’ (rather than 100% immediately as a direct ‘expense’). While 26% of the cost is recovered directly as a credit against tax liability for the year of installation (see above), the law nonetheless allows 85% of the full system cost (rather than 70%) to be deducted from taxable income over time via ‘depreciation. Depending on the tax bracket, roughly 12-25% of original system price may be recouped this way.
FEDERAL Incentives
30% Federal Tax Creditor example
In August 2022, the Inflation Reduction Act became law. In it are provisions to support solar growth by increasing and extending this federal tax incentive for 10 years! Receive 30% of the full system cost back as a credit against your total tax liability for the year your system was installed. This tax credit is 30% for systems
‘placed in service’ between January 1, 2022 and December 31, 2032.
The tax credit is non-refundable and requires that you have the tax appetite to be eligible. It can be carried over for 1 year. The home must be owned by the taxpayer but they don’t have to be the resident. For example, this can work if you rent your home or if you have a vacation home. Consult your tax professional to find out how this credit can work best for you. you rent your home or 30% Federal Tax Credit.
UTILITY Incentives
The Ameren Missouri rebate will give back $0.25/watt to the customer. While a quarter per watt does not sound like much, this rebate translates to $250/kilowatt (kW). For example, an average 10kW residential rooftop solar PV system can qualify for a $2,500 rebate.0/kilowatt (kW).
DEADLINE APPROACHING: Your system must be installed and pass final inspection from your local jurisdiction by December 31, 2023 to receive the rebate.
ILLINOIS Solar Incentives
Solar Renewable Energy Credits (SRECs)
Recover 20-30% of the original solar system cost with cash payments upfront or over 5 years, depending on system size, from the Illinois Power Agency. Solar Renewable Energy Credits are based on the production of your solar PV system.
What Are Illinois SRECs?
Every solar system produces actual electricity, as well as an environmental and energy security benefit to the region. The concept of an SREC is a way to place a value on this benefit, so that someone other than the system owner can buy just the benefit, and count it as its own contribution to the community. When an organization buys an SREC it is essentially buying the environmental benefits.
Who Wants to Buy SRECs?
The State’s 3 investor-owned utilities (not energy cooperatives or municipal utilities) must pay into a dedicated fund, and these dollars are collected from ratepayers. The utilities draw from this exclusively to purchase SRECs (according to specified state RPS targets) from owners of solar electric systems including those in cooperative and municipal utility territories.
How Does SREC Work?
In Illinois you as a solar owner contract with an Approved Vendor (through your installer) to sell all the SRECs your system is expected to generate over the first 15 years. Then for systems under 10kW you receive a lump sum payment after your solar array has been installed in one lump sum. For systems larger than 10kW, the 15 year payment is spread out over 5 years.
R.E.A.P (Rural Energy for America Program)
Renewable Energy Systems and Energy Efficiency Loan and Grants
Loan guarantees for this program are streamlined under tge OneRD Guarantee Loan Initiative
What does this program do?
The program provides guaranteed loan financing and grant funding to agricultural producers and rural mall businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing.
Who can apply?
- Agricultural producers with at least 50 percent of their gross income coming from agricultural operations.
- Small businesses in elegible rural areas.
NOTE: Agricultural producers and small businesses must have NO outstanding deliquent federal taxes, debt, judgment, or debarment.
What types of funding are available?
• Loan guarantees on loans up to 75% of total elibilble project costs
• Grants for up to 40% of total elibible project costs
• Combined grant and loan guarantee funding up to 75% of total eligible project costs
Grant application deadlines are March 31, 2023 for projects over $20,000 or more Grant application deadlines are October 31, 2023 for projects $20,000 or less.
As of now, there is possibility of 2023 extension for REAP application’s over $20,000 but no final determination has been made.
Grant applications are complex living breathing documents (Often 100 pages in length or more). We use a 3rd party administrator who is a professional grant writer who has 92 percent win rate winning grants for our clients. This relationship is truly a win/win situation in that: they only collect their fee of 3%-5% of the grant you apply for and have to win, for them to get paid. They are basically doing their work pro-bono on the if-come. They do ask for a nominal $600-$900 non-refundable application fee, to help defray some of the costs of the grant writing process
Get a free quote and analyses of our solar installation on your home:
Let GreenWay Solutions helps you
Simply fill the form and attatch a picture of your current Electrical Bill.
In addition to your custom design you will also get a report on all the Cash Rebates, Incentives and Tax Credits you could potentially qualify for!
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