Making the solar switch saves your business money on your energy bills and designates you as an environmental leader. The combination of rising utility costs, dramatically decreased solar costs, and a 30% federal tax credit combined with rapid depreciation makes solar an option for leading businesses in the St. Louis region.
Savings: Depreciation + 30% Fed Tax Credit = Approximately 50% savings!
Rapid Depreciation – Over Five Years
* Learn more: Modified Accelerated Cost-Recovery System (MACRS)
30% Federal tax credit:
- 30% of Photovoltaic (Solar Electric) System
* Learn more: Federal Renewable Energy Tax Credit
How to File for the Federal Tax Credit
- For products “placed in service” in 2014, you need to file the 2014 version of IRS Form 5695 and submit it with your 2014 taxes (by April 15, 2015).
- On the 1040 form you enter this tax credit from Form 5695 (the residential energy tax credit) on line 52.
- Save your receipts and the Manufacturer’s Certification Statement for your records.
- Submit Form 5695 with your 2014 taxes
* EPA website on How to File for the Federal Tax Credit solar energy systems.
USDA Rural Energy for America Grant and Guaranteed Loan Program (USDA REAP)
- Agricultural Producers & Rural Small Businesses
- Up to 25% Grant, 75% Guaranteed Loans are Avalable
- Qualifying Renewable Energy & Renewable Energy Projects
*Learn more: USDA REAP
Columbia Water & Light (Columbia, MO)
- 50 cents /watt solar rebate
- Maximum rebate is $5,000 /10,000 watts
* Learn more: Columbia Water and Light
Solar Renewable Energy Credit (SREC) Program:
- Beginning in 2015, the Illinois Power Agency will use the Renewable Energy Resources Fund to purchase SRECs from system owners in a competitive auction
- Systems placed in service after January 21st, 2015 will be eligible to bid in during Special Procurements in June and November of 2015; Systems already in place at that date will be eligible to bid in during the September 2015 Regular Procurement
- Each SREC is equivalent to 1 MWh; Calculations of SRECs for each system are based on estimated annual production factor of 14.38%
- SRECs are able to enter into 5-year contracts based on their project bid amount
For example, a 10 kW system will be eligible to bid 63 SRECs in the program using this formula:
10 kW / 1000 kW * 14.38% * 8760 * 5 yrs = 63 SRECs
* Other eligibility requirements apply to this program
* Learn more at the Illinois Solar Energy Association
- Solar Tax Resources Summary: An overview of all the links, accounting, and forms you need
- Accounting for PV System Rebates: A guide to accounting for solar systems and the federal tax credit, rebates, and depreciation.
- DSIRE, the Database of State Incentives for Renewables & Efficiency: The nation’s most comprehensive, one-stop source of information on federal, state, local, and utility incentives and policies that promote renewable energy and energy efficiency. DSIRE contains information on more than 2,200 programs and is accessible online for free at www.dsireusa.org.
StraightUp Solar, LLC recommends consulting an accountant regarding tax incentives. Information here is provided as a resource, but not tax advice.