Support from Government Entities
An important part of solar build-out across our country is the support from government entities. In order to achieve our national goal of energy independence, the U.S. government passed tax laws and beneficial business guidelines that have helped make solar electricity economically viable as an alternative energy source. The Federal Government currently has the Federal Investment Tax Credit and MACRS Accelerated Depreciation available for renewable energy installations. A Power Purchase Agreement allows for profit and non-profit organizations to benefit from these incentives in the form of electricity savings and predictability.
State and Local Solar Incentives
In addition to federal incentives, many states have passed laws mandating a certain percentage of their state’s energy must come from renewable sources. These laws, called Renewable Portfolio Standards (RPS), will continue to drive solar construction in two key ways: timelines and penalties.
- Timelines: RPS mandates have aggressive timelines associated with compliance. Many states require the build-out a solar energy offering of between 5%-30% of overall energy production by 2022 (depending on state).
- Penalties: State governments have built-in penalties if the utilities do not achieve these balanced portfolios, which require them to support the move towards solar and other renewable sources.
Each state provides economic incentives to help this migration towards clean energy, and these incentives play a valuable role in providing solar electricity as a viable energy source and investment.
Learning More About Solar Incentives
New Energy Equity can guide you in finding the most favorable solar incentives on a federal, state, or local level. To get a sense of the possibilities in your location, a national database of solar incentives is a good resource. Search the online Database of State Incentives for Renewable Energy, DSIRE® to get an idea of what’s available, and then let the experts at New Energy Equity financially engineer the best project for you.