When your company settled into its current space, it’s likely that they had a list of criteria for the layout, location, square footage and operating costs. Looking for the best info about solar tax credits 2023, Del Sol Energy has the latest info. And while this list may have been comprehensive at the time, did it take into account ways to reduce operating costs over time? If you thought that reducing utility costs, taxes and increasing the value of the property were out of reach for a commercial building, think again. Businesses are taking matters into their own hands and installing Solar systems now more than ever, taking control of costs and the overall image of their companies.
Solar Tax Credits 2023: All You Need to Know
Switching over to solar energy may seem like a daunting task, but first let’s consider the benefits:
The Investment Tax Credit (ITC) is a bedrock solar incentive. The federal government provides a tax credit worth 30% of the cost of your system. It’s a dollar for dollar, uncapped tax credit that can be carried forward into the future. After your system has been commissioned, you can take advantage of the credit the next time you file a federal tax return.
Solar Renewable Energy Certificates
A major state-level incentive, Solar Renewable Energy Certificates (SRECs) can be compared to shares of stock and are the revenue portion of your solar photovoltaic system. One certificate is issued to you each time your system produces 1,000 kWhrs of electricity. Instead of receiving a fixed payment per kWh, certificates are sold on an open market for cash. In fact, Green Power Energy can even sell your SRECs for you.
Increased Property Value
Incorporating solar power into your commercial building can dramatically increase the economic value of your property. Renewable energy systems are known to increase resale value by $20,000 for every $1,000 in annual electricity savings. In some states, solar power systems are also exempt from sales tax and property tax increases. By investing in solar power, you not only boost the economic value of your property but also make it more attractive to investors who might be willing to pay a premium for a building that is economically and operationally efficient.
MACRS Depreciation Incentive Solar Tax Credits 2023
Modified Accelerated Cost Recovery System (MACRS) is a depreciation method that allows the owner of solar energy equipment to claim a significant tax deduction. As an incentive, the IRS has classified solar energy as a 5-year property under the MACRS depreciation schedule. Classifying solar as a 5-year property boosts the returns on your investment, which means you get more money back early on.
Pair the above benefits with the added benefits of excellent public perception of your environmentally-friendly company and you have hit the jackpot.
Demand for solar is rising, which also means that costs are dropping and state and federal agencies are rewarding companies handsomely for taking strides towards energy independence. Walk away from current energy company with your head held high as you make the investment in solar and take advantage of a tax credit equal to 30% of the cost of your commercial solar panel installation, parts, labor, and other service costs.
Del Sol Energy, a Brentwood, CA company which serves Brentwood, Oakley and Antioch, has a team of Solar expert’s ready to help. Join countless other businesses who have already made the decision to switch over to clean, renewable energy.
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“Very impressed!! Del Sol Energy proved to be very professional and kept to an appropriate time schedule. All of our questions were answered thoroughly and we feel secure in knowing we made the best choice. We highly recommend these guys!”
Tracy W., Clayton, CA
Del Sol Energy did a fabulous job on our solar system. The owner of the company, Matt, was also the project manager, and he made sure everything went smoothly. He’s an Electrical Engineer, and knows what he is doing. I had estimates from several companies and they were all about the same, but the stellar service from a small company like this makes it a much better value.”
Scott V., Brentwood, CA