Solar is more affordable than ever before. How many energy devices can you buy for your business that actually pay you back? The Federal government and many state governments are encouraging us all to explore and benefit from renewable energy by offering tax credits on qualifying solar hot water and solar electric systems. There’s never been a better time to put Solar Energy to work for your business or organization. Thanks to these incentives, businesses and homes can enjoy a greatly reduced payback period on solar system investments.

How you can save with solar, qualify for incentives, and multiply those savings:

A Solar Water Heating installation for hot water can significantly cut your natural gas usage.

Combined with an appropriately sized solar PV system, a significant portion of your electric utility bill can also be eliminated.

Federal and State Tax credits are available to those purchasing Solar Systems. Tax credits are subtracted directly from total tax liability making them more advantageous to taxpayers than tax deductions.

If you are located within a participating utility provider’s area such as Georgia Power, you can sell green power back to your utility at close to double your purchase price for kilowatts, offsetting your electric bill.

Some equipment manufacturers offer rebates on their solar equipment, anda few Electrical Membership Cooperatives offer rebates on solar system purchases.

Federal & State Tax Incentives

For Companies – under the Federal Energy Policy Act of 2005, companies can qualify for a 30% Federal Income Tax Credit on 100% of the total installed cost of your commercial Solar System. There’s no cap on the size of the system and the entire solution is also eligible for a five-year accelerated depreciation under MACRS. The State of Georgia via the Georgia Clean Energy Initiative (HB 670) adds a 35% State Income Tax Credit for most or all of the total installed cost of a commercial Solar System with some limits. Thus, beyond depreciation advantages, 65% of your Solar System can be paid for in the first year of operation.

For Homes - under the Federal Energy Policy Act of 2005, homes can qualify for a 30% Federal Income Tax Credit for the total installed cost of your Solar System (residential maximum credit lifted starting January 1, 2009). The State of Georgia adds a 35% State Income Tax Credit for up to $10,500 of the total installed cost of your Solar System.

Qualifying solar energy systems must be in operation by midnight December 31 to be eligible for Federal and Georgia tax incentives for that tax year. Tax regulations are always subject to change and, hopefully, be enhanced in the future. If you want to free yourself from the spiraling and unpredictable costs of energy, now is the perfect time to take more control by adding solar technologies to your energy mix.

We can help you navigate the certification criteria and forms necessary for maximum benefit, but always consult your tax professionals for compliance. Summaries of federal and state renewable energy incentives are at Database of State Incentives for Renewables and Efficiency (DSIRE). More on Georgia Clean Energy Incentives is at Georgia Environmental Facilities Authority (GEFA).