One of the most important Solar Energy Services we offer is assisting our clients in identifying and utilizing all available federal, state and local rebates, grants and tax credits. Solar projects often qualify for a number of incentives. Potential subsidies include tax credits, utility rebates, grants, accelerated depreciation, and where available Solar Renewable Energy Credits (SREC’s).
Navigating the incentive programs and related applications can be a daunting task for someone outside our industry; that is why our team champions this process. Working with financial institutions and private lenders to partner with our clientele, there are a number of financial solutions available for businesses and residential customers.
Power Purchase Agreements (PPA)
A Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period. This financial arrangement allows the host customer to receive stable, and sometimes lower cost electricity, while the solar services provider or another party acquires valuable financial benefits such as tax credits and income generated from the sale of electricity to the host customer.
A Solar Lease is an agreement in which a customer pays for the solar power system over a period of years, rather than in an up-front payment. Often customers can purchase solar for little or no money down, and often realize energy savings immediately.
Take advantage of the Investment Tax Credit (ITC) until the end of 2016, which alone reduces the project cost by 30%. Couple the ITC with state and/or local utility rebates, grants, and accelerated depreciation, net system costs can be reduced by up to 50%.