Is your home good for solar?
Find out by taking this handy 2 min quiz!
How does solar work for businesses?
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.
26% Federal Investment Tax Credit
Receive 26% 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 26% for systems ‘placed in service’ by December 31, 2022. In 2023, the tax credit drops to 22% and then starting in January 2024 drops to 10% for commercial systems (0% for residential). Learn more details (including the IRS form) at EnergyStar.gov.
MACRS & Bonus Depreciation
Your business can recoup roughly 12-25% of original system price. Click here to learn more.
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
A $250/kW (DC) smart inverter rebate is available for large commercial, industrial, and non-profit systems, which are generally those in Ameren 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
Ameren Missouri Rebate
The Ameren Missouri rebate will give back $0.25/watt to the customer. This direct cash rebate is available until December 31, 2023. To qualify, the maximum array size is 25 kW (kilowatts) for a residential system and 150 kW for commercial.
Please see Ameren’s website for more information.
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 25% 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.
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 2-3% interest loans to both individuals and businesses. This program has been infrequently used for solar electric projects due to certain limitations. However, the program is well-funded and worth looking into.
Just like photosynthesis captures the power of the sun to grow plants, a solar photovoltaic (PV) system captures the power of the sun
By Dan Hancock, Senior Commercial Project Developer, StraightUp Solar Small businesses in the U.S. spend $60 billion a year on energy (U.S. EPA ENERGY STAR),
When you start researching solar panels for your home or business you start seeing kW and kWh everywhere, but what do they mean?!?! The Kilowatt
