Solar and Wind Energy – Federal, State and Utility Financial Incentives
Below are summaries of various federal, state and utility financial incentives that promote the installation of renewable energy systems. Please contact us at Soenso Solar Energy for more detailed information.
The American Recovery and Reinvestment Act of 2009 established a 30% Federal income tax credit with no cap for the installed cost of commercial and residential renewable energy systems. Commercial and residential consumers who install solar energy systems (including solar water heating and solar electric systems) and small wind systems can receive a 30% tax credit for systems placed in service before December 31, 2016.
The USDA Rural Energy for America Program (REAP) Grants are incentives that are available to agricultural producers and to rural small businesses to purchase solar energy systems (including solar water heating and solar electric systems) and wind energy systems These grants are for 25% of a proposed project's cost.
The Georgia Clean Energy Tax Credit Incentive of 2008 established a state income tax credit of up to 35% of the installed cost of commercial and residential solar energy systems (including solar water heating and solar electric systems) and small wind systems. The tax credit caps vary, and they are more generous for commercial systems than residential systems. The annual state-wide allotment for clean energy income tax credits is $5.0 million and is awarded on a first come, first served basis. The credits must be taken in 4 equal installment for 4 consecutive years. These state tax credits are available through calendar year 2016 or until the funds are exhausted, whichever occurs first. It is likely that the allotted state clean energy tax credit funds will be exhausted well before the end of calendar year 2016.
The Tennessee Clean Energy Technology Grant is a pilot program for businesses to install renewable energy systems. To qualify, the facility where the system will be installed must undergo an energy audit. The grant amounts are 40% of the installed cost for commercial solar energy systems (including solar water heating and solar electric systems) and wind energy systems up to a maximum of $75,000. The Tennessee Clean Energy Technology Grant is for businesses only. Homes and non-profits are not eligible for the program.
Electric Utility Companies, Electric Membership Cooperatives and TVA offer varying incentives for commercial and residential installation of renewable energy.
Financing options are available for commercial solar energy installations. We have finance partners that can arrange attractive financing for commercial solar energy installations. Please contact us at Soenso Solar Energy for information.