Benefits to Investors and Sellers
- Commercial solar will greatly reduce your power bills, improve energy efficiency and thereby increase your profit margin as well as increase marketability and offer a guaranteed constant return on investment.
- With solar systems for commercial buildings, you can offer clients lower utility bills (free electric!) increasing the value of your property.
- Per the U.S. Treasury, solar is a capital investment and can be depreciated in five years.
- Through Federal Tax Credits, you will recover a minimum of 30% and a maximum of 100% of the total cost of the commercial solar system and installation within five years.
- With a five year ROI, your fixed costs for energy will be virtually $0, leaving you with a higher profit margin on the sixth year, raising the net value of your commercial property substantially.
Benefits to Property Management
- Commercial solar will give you a competitive advantage in managing solar properties as solar becomes more commonplace.
- Going solar with a dedicated company like Sol-Up improves public relations and shows dedication to your local economy and community.
- Solar will significantly decrease operating costs by creating free energy.
- Solar energy will not fluctuate because there is no fuel or operational costs involved.
- Installing solar systems on commercial buildings is a creative solution to long-term increasing costs that you and your investors will incur. Solar provides long-term stability and cost savings, and is a win-win-win for property owners, property manager and tenants.
The traditional flat roof often has many shading obstacles. Our commercial solar PV system combines high-efficiency, frameless modules with SolarEdge inverters to allow for more power generation, even in space-constraints. Along with mitigating power loss due to a mismatch between modules, including lower performing modules that do not affect the entire string or array, our system comes with a simplified electrical design. Less electrical components mean lower costs and improved reliability, thereby improving your bottom line.
Our commercial solar system comes with a 25-year warranty and state-of-the-art monitoring capabilities, with automatic fault notification alerts to let you know when your array needs maintenance. Having more insight into your system performance means your investment is secured and protected for decades to come.
Accompanying the latest advancement in solar technology, our system also offers advanced safety features that completely de-energize the entire array, providing automatic protection to maintenance personnel, firefighters and installers. Full visibility of your system performance on the go via mobile applications or connected devices creates peace of mind and makes the decision to go solar a sensible one.
Through federal and state incentives, 30 to 100 percent of your commercial solar system costs can be recovered. With the recent drop in equipment costs, along with these incentives, it’s possible to see a return on investment within 5 years or less. Please consult a tax professional for specific terms and restrictions.
Federal
Modified Accelerated Cost Recovery System (MACRS)
The U.S. tax code allows for a tax deduction for the recovery of the cost of tangible property over the useful life of the property. The Modified Accelerated Cost Recovery System (MACRS) is the current depreciation method for most properties. The market certainty provided by MACRS allows businesses in a variety of economic sectors to continue making long-term investments, and has been found to be a significant driver of private investment for the commercial solar and other energy industries.
Qualifying solar energy equipment is eligible for a cost recovery period of 5 years. This can be 100 percent of your costs (after incentives), but may be limited to a $500,000 maximum annually. For more information on the federal MACRS, see IRS Publication 946, IRS Form 4562: Depreciation and Amortization, and Instructions for Form 4562
Business Energy Investment Tax Credit (ITC)
All residential and commercial solar electric systems are eligible to receive the Investment Tax Credit of 30 percent of expenditures, with no maximum credit or system size. In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken.
State
NV Energy Renewable Generations Rebate
Eligible state rebates are administered through NV Energy. For commercial solar projects over 25kW, NV Energy offers a production based incentive (PBI) annually for 5 years. This rebate is based on the actual electricity production of the system. The maximum size to receive a rebate is 500kW.
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SRECs/PECs
Nevada’s renewable energy producers can earn portfolio energy credits (PECs) or solar renewable energy credits (SRECs), which can then be sold to utilities or entities that are required to meet renewable energy portfolio standards. Those who choose the option of not going with the NV Energy Renewable Generations Rebate will retain all their PECs/SRECs. SRECs are tradable environmental commodities, similar to stock certificates, in which each certificate represents 1,000 kWh of solar energy generated by a solar power system. Currently the trading market for the western states isn’t available, although this may change in the near future. For more information regarding SRECs, please visit SRECTRADE or WREGIS.
*Each business should consult a tax attorney or CPA to determine specific status and eligibility for current IRS and U.S. Treasury programs. These programs change periodically and should be verified by businesses and individuals who wish to participate prior to entering into any contract. Sol-Up is not a tax expert and makes no claim to consult individuals or businesses on tax issues. All information provided here is public information and can be found on DSIRE, irs.gov and energy.gov.
Solar Carports Provide Shade & Electricity Plus Fast ROI!
Our solar carports come in a variety of sleek designs. They add shade to your parking lots, as well as provide additional solar mounting space. With only a 50-cents per watt increase in the total system costs, they allow businesses, the government and public entities to claim tax and depreciation deductions. These tax deductions will enable an ROI timeframe of between 3 and 5 years! Inquire with us today for a customized quote for your organization!
We make it easy for you to go solar by providing several ways to pay for your commercial solar project. The most popular option is our cash-payment plan, which consists of a 3-part payment schedule. If you prefer to finance your solar project, we also offer several programs to suit your needs.
Traditional Loans
Our traditional loan option is financed through Nevada State Bank. Your completed loan application is processed directly through our bank partner to ensure accuracy and privacy. This option consists of regular monthly payments with predictable savings and returns.
Lease to Own
Not all corporations can utilize the tax benefits of purchasing a commercial solar energy system, hence a traditional operating lease is preferred in situations where the available tax credits exceed the amount of the owner’s tax. Our lease-to-own financing option allows the lessee to monetize the ITC with lower monthly payments, where the payments are fully tax deductible, similar to leasing a company car.
This payment method is set up in the following way:
- Transaction sizes: $100,000-$5 million
- Lease term: 7 years.
- Monthly payments: 100 percent deductible
- Early buy-out option: Fixed price at end of the sixth year
- Purchase option: Greater than fair-market-value, or 20 percent at end of the seventh year
- No up-front capital costs means low cost of ownership.
- Allowing the lessee to take advantage of utility rebates and government incentives
Our lease-to-own program is through LFC Capital’s Solar Ownership Program. For more information on how you can take advantage of this cost-saving lease-to-own financing option, contact us today!
Secured ROI and predictable savings
Advanced technology increases system reliability and production
Innovative financing
Hassle-free and zero business disruptions!
