Helping your business go solar
There are several federal and local programs that help businesses, rental properties, and other commercial organizations purchase and install solar energy systems including: low-interest loans, accelerated depreciation frameworks, grants for nonprofits and small businesses, and special incentives to encourage companies to go solar.
Learn more about national and local programs, grants and commercial financing below.
Call us at (206) 707-9937 or (503) 420-8680 and we’ll be happy to explain the programs available to you over the phone. Find out how painless going solar this year can be!
National solar incentive programs for businesses
A&R Solar partners with several local financial institutions that offer low-interest loans for residential solar installations. These are generally zero-down loans with no fees, and the only collateral on the loan is the solar equipment.
The Federal Income Tax Credit is valued at 26% of your total solar system cost in 2022 or 22% in 2023. A tax credit is a dollar-for-dollar reduction of the income tax you owe.
If you can’t use the full value in one year, you can roll over the remainder to next year. You should check with a tax adviser to make sure you can claim the entire value.
MODIFIED ACCELERATED COST
RECOVERY SYSTEM (MACRS)
MACRS is an accelerated tax depreciation schedule in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified lifetime by annual deductions for depreciation.
Qualifying solar energy equipment is eligible for a cost recovery period of five years. This incentive is typically only available for businesses and rental properties.
Local incentive programs for commercial solar projects
The 100% Clean Energy Act passed in 2019 by the Washington State Legislature provides sales tax relief for commercial-scale solar energy systems, reducing your upfront costs. Call us at (206) 707-9937 for more details.
The Energy Trust of Oregon offers incentives for commercial solar projects installed by solar trade ally contractors like A&R Solar, depending on size. If you are a Pacific Power or PGE customer, call us at (503) 420-8680 to see if your project will qualify.
Grants for small businesses and nonprofit organizations
Government and foundation grants may be available to help your organization pay for up to 100 percent of the cost of a new solar energy system. A&R Solar has installed systems for nonprofits, local schools, colleges, and public buildings in Washington and Oregon. Many of these organizations have used grant dollars to help pay for their system, and they are now receiving the benefits of a reduced energy bill.
Our solar team stays up to date with local and federal grant programs that provide solar for community organizations like schools, churches, libraries, and some small businesses. We can help:
- Locate grants that will help pay for the cost of going solar
- Assist with grant writing and technical information for applications
- Track grant application process and an updated timeline to installation
Commercial solar financing – work with a solar installer
Securing financing for commercial projects generally requires technical information about the solar project submitted with a loan application. As such, it’s best to work through a loan application with a solar contractor.
Solar energy is a stable asset that more and more banks recognize as safe collateral. Your project might be best suited for a long-term lease, a power purchase agreement, or a traditional term loan. Our commercial projects team can help you determine the best option for financing your solar project.
Private and public sources of financing
In addition to accessing financing from private banks, credit unions or alternate lenders, several federal and state programs exist to help companies finance solar energy projects with low-interest loans where the only collateral required for the loan is the solar equipment.
Our commercial projects team maintains a list of recommended financing options for solar in your state, which might include a loan application process that we are happy to help you with.
Call us at (206) 707-9937 or (503) 420-8680 and we’ll be happy to explain these programs to you over the phone.
Reasons to go solar today
Here are some of the financial reasons business owners should consider installing solar energy systems. Call us at (206) 707-9937 or (503) 420-8680 for more information.
The federal solar tax credit (known as the ITC) allows you to receive a tax credit of 26% of your system’s cost if the project begins in 2022 and 22% in 2023. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to next year. You should check with a tax adviser to make sure you can claim the entire value.
OTHER OFFSETS TO UPFRONT COSTS
Washington State sales tax relief, Energy Trust of Oregon incentives, grants, accelerated depreciation, low-interest financing, Rural Energy for America Program grants and loans… the list goes on. Call A&R Solar at (206) 707-9937 or (503) 420-8680 to find out which programs you qualify for, what you can save, and how we can help.
OWN YOUR POWER
Net metering is a contract that you sign with your utility that allows you to trade your power with them at retail rates. You get credit on your bill for your excess Kilowatt Hours (kWh) when your system is producing more than you consume. At night or when your system isn’t producing, you buy power from the utility like you do now.
RISING ELECTRICITY COSTS
Solar is protection against rising energy costs. Electricity rates go up by 4-6 percent each year, and utilities are rolling out smart meters to enable Time of Use pricing tiers. Time of use pricing may raise rates during traditional business hours.
Panel manufacturers’ warranties last 25 years or more, and most panels will perform long after that. That means free electricity and lower overhead costs for your business for decades.