Today’s attractive subsidies for solar energy are worth a second look
The most difficult obstacle in committing to cleaner energy is often the cost of implementation. Fortunately, the cost of installing solar power has dropped by more than 90 percent, according to a recent story in Bloomberg News. Indeed, the total value of this tax credit is estimated around $25 billion over the next five years.
A 30% federal tax credit can = $1000s in savings
While the tax credits provide a short-term incentive to invest in solar equipment earlier, there are also significant long-term economic benefits.
Align energy savings with lease investments: The 60-80% energy cost savings realized from going off-grid may be able to cover your lease payments on the solar panels – providing a cash neutral solution. Beyond that, commercial solar projects can be profitable for many industries as these projects use solar energy to power their extensive energy needs, such as manufacturing machinery and other equipment.
Take advantage of tax incentives: Depreciation benefits realized through leasing and a 30% federal tax credit on solar equipment can lead to thousands of dollars in savings. A recent $500,000 lease on solar equipment netted $100,000 in savings.
Another benefit of leasing is 100% financing, including any soft costs or progress payments.
As organizations seek to hedge against higher energy costs, take advantage of the recent decline in solar materials costs, and utilize temporary tax incentives – industrial solar panels may soon have their day in the sun.
The information presented here has been prepared for informational purposes only. First American does not provide tax, legal or accounting advice.