Federal Tax Incentives For Solar
The bedrock of solar financials are the 26% federal Investment Tax Credit and federal MACRS depreciation which return a large portion of the original system cost. These remain a significant financial incentive for going solar, but unfortunately are not available to tax-exempt entities.
A third-party investor can install and own a system on a tax exempt organization’s property and take full advantage of the federal tax incentives. The third party is then in a position to pass on some of the resulting monthly savings to their host.
Such a partnership could be structured in a number of different ways. See your State’s Financing options to learn more.