You might have questions about how solar will add to your farm’s bottom line. Here we guide you through available incentives and financial options.
With the cost of solar panels and solar energy technology steadily decreasing over the years, going solar has never been more affordable—and that’s on top of immediate energy bill savings and incentives that can significantly reduce your project costs.
Though some farm operations prefer to pay cash in full, not all can pay upfront for a solar energy system. Fortunately, there are several solar financing options available to make the switch to solar simple.
Discover incentives to help make solar more affordable for your farm operation.
30% Federal Investment Tax Credit
In August 2022, the Inflation Reduction Act became law. In it are provisions to support solar growth by increasing and extending this federal tax incentive for 10 years! Receive 30% of the full system cost back as a credit against your total tax liability for the year your system was installed. This tax credit is 30% for systems ‘placed in service’ between January 1, 2022 and December 31, 2032.
MACRS & Bonus Depreciation
Your business can recoup roughly 12-25% of original system price. Click here to learn more.
Illinois Solar Renewable Energy Credits (SRECs)
Recover 20-30% of the original solar system cost with cash payments upfront or over 5 years, depending on system size, from the Illinois Power Agency. (Not available with PPA). Solar Renewable Energy Credits are based on the production of your solar PV system. Click here to learn more.
$250/kW Smart Inverter Rebate in Illinois
A $250/kW (DC) smart inverter rebate is available for large commercial, industrial, and non-profit systems in Illinois, which are generally those in Ameren Illinois territory having a peak demand of over 150kW (rate DS-3 and above), and for ComEd customers, a peak demand more than 100kW. These installations will be required to incorporate “smart” inverter technology, which will be accessible to the utility to facilitate grid reliability. Note that these customers are eligible only for a so-called dual metering arrangement with credits per kWh at the utility’s ‘avoided cost’ (wholesale rate), if they elect to be designated as a Qualifying Facility.
See Net Metering 101
A solar loan allows you to purchase a home solar system and pay it off over time. The types of solar loans include:
REAP Grants & Loans
USDA grants up to 40% of total project cost awarded competitively and USDA loan guarantees up to 75% of project cost. Click here to learn more and determine initial eligibility.
Power Purchase Agreement (PPA)
Third party investors have a strong interest in solar. With the available federal tax incentives and SRECs, a third party investment partner will pay to install and own the solar system on your property. Through a “power purchase agreement” you buy only the kilowatt hours the system produces.
Clean Energy Credit Union
StraightUp Solar has a seamless relationship with Clean Energy Credit Union to provide special financing to help people install solar electric systems on their homes. These loans include solar, electric vehicles, batteries, and geothermal energy.
The solar loan through Clean Energy Credit Union was specifically designed to finance residential or small solar projects. It is split into two parts:
We want to make it as easy as possible for our customers to go solar. This financing product is what we offer most often with our solar installations.
PACE Financing
Property Assessed Clean Energy (PACE) is a financing mechanism that was approved for use in Missouri by the legislature a few years ago. The way this financing works is that the home or the property itself takes out the loan for the solar array as opposed to the individual. The individual pays the loan back through monthly payments via an escrow account (if the home is still under mortgage), and then the escrow account covers an additional line item that is added to property taxes, which is the solar loan. It is important to note that this does not increase your property taxes themselves, it increases the bill that is sent to you until the solar is paid off. The local government then pays the financing institution that offered the loan in the first place as opposed to paying the finance institution directly. The benefit of this financing is that the loan stays with the home. When the resident that installed solar moves out the new resident that moves in continues to pay for the solar array.
State Sponsored Loans
MO Linked Deposit Alternative Energy Loans
Through this State Treasurer’s program, participating banks and credit unions offer low interest loans to businesses. This program provides loans for the purchase, installation or construction of facilities or equipment related to solar energy. The applicant business owner must be a Missouri resident and not owe any unpaid, non-protested taxes to the State of Missouri or any political subdivision..
Clean Energy Credit Union
StraightUp Solar has a seamless relationship with Clean Energy Credit Union to provide special financing to help people install solar electric systems on their homes. These loans include solar, electric vehicles, batteries, and geothermal energy.
The solar loan through Clean Energy Credit Union was specifically designed to finance residential or small solar projects. It is split into two parts:
We want to make it as easy as possible for our customers to go solar. This financing product is what we offer most often with our solar installations.
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