Commercial Solar
Since the company’s inception, Commercial and Utility-scale solar installation has been a foundational part of the business. Our experienced team will help you find the best solution for your business and help move you towards a clean energy future. There are a variety of different industry-specific State and Federal Incentives for business owners looking to go solar. Please refer to the button below so we can help you find the best options for your business.
Commercial Work in the Tennessee Valley
With our experienced commercial solar team, we have been able to install over 3 MW of solar. This means offsetting over 100,000 tons of harmful carbon dioxide emissions, and is equal to planting over 2.4 Million trees!
Description MACRS.
A type of asset depreciation is the Modified Accelerated Cost Recovery System. Currently, you may be questioning what depreciation actually is. A good query! We advise paying attention to the Internal Revenue Service’s perspective on the matter:
So any physical object, be it a car, a TV, or even solar panels, loses value with time, especially as you use it. According to tax law, depreciation is a means to reduce your taxable income. To depreciate an asset’s worth, you take the amount by which it has lost value and “allocate” it to a certain time period, such as a year, when the asset was still contributing value.
How does solar-related MACRS operate?
With MACRS, you can recover the costs in a shorter amount of time—in the case of solar, five years. In the case of solar investment, you would invest in solar and reduce your taxes over a five-year period based on the amount you spend on solar. The advantage of MACRS is that it allows you to pay less in taxes each year.
On how MACRS relates to companies who invest in solar, the Solar Energy Industries Association (SEIA) offers highly detailed guidelines. You must take into account how the solar investment tax credit (ITC) will affect the amount of the investment that you can write off as a deduction.
The amount of the investment that can be depreciated must be reduced by half the amount of the ITC you claim if you use the ITC on your solar project (26 percent through 2022, 22 percent in 2023, and 10 percent for commercial projects into the future). Alternatively put, by 13% through 2022, 11% in 2023, and 5% after that. The solar project’s depreciable basis, which is calculated over five years, will therefore be 87 percent of the cost through 2022, 89 percent in 2023, and 95 percent beyond that.
Equipment Specs
These are the products that we use
Enphase Encharge 10
The Enphase Encharge 10™ all-in-one AC-coupled storage system is reliable, smart, simple, and safe. It is comprised of three base Encharge 3™ storage units, has a total usable energy capacity of 10.08 kWh, and twelve embedded grid-forming microinverters with a 3.84 kW power rating. It provides backup capability and installers can quickly design the right system size to meet the needs of both new and retrofit solar customers.
Micros, Enphase Enpower, and Enphase IQ Envoy for backup operation.
Generac PWRCell
Solar + storage is simple with the Generac PWRcell™ Inverter. This bi-directional, REbus™-powered inverter offers a simple, efficient design for integrating smart batteries with solar. Ideal for self-supply, backup power, zero-export and energy cost management, the PWRcell Inverter is the industry’s most feature-rich line of inverters, available in single-phase and three-phase models.
FAQ’s
What are the financial incentives for Commercial Projects?
Similar to the Residential Federal Income Tax Credit, The 30% Federal Investment Tax Credit (ITC) is available to businesses and tax-exempt entities. Under the bill recently passed, tax-exempt entities are eligible to receive reimbursement via direct pay for 30% of total system cost. The 30% solar tax credit has been extended until 2032. Additionally, there are ways for system owners to claim a 40%-50% solar tax credit depending on the area of the project.
MACRS Accelerated Depreciation
Modified Accelerated Cost Recovery System (MACRS) is a method of depreciation in which a business’s investments in solar property can be recovered through federal tax deductions. MACRS benefits can be taken all in the first year and generally range anywhere from 20-24% of your project cost back to the business within year one. To read more on MACRS Bonus Depreciation, please visit https://news.energysage.com/macrs-overview/
USDA REAP Grant for Small Businesses
For eligible rural businesses, the USDA offers a Rural Energy for America Program (REAP) grant for solar energy systems of up to 50% of total solar energy project costs! Green Wave Solar has grant writers on staff with REAP grant approval track records of 95%. The next USDA REAP grant application deadline is March 31, 2023.
Altogether, this means your business may qualify for up to 100% funding and credits by taking advantage of the incentives listed above!