Eligible for the most federal and regional solar incentives
Cumulative federal and regional incentives can offset more than 50 percent of the total installed cost of a solar cogeneration system though a mix of limited-time tax credits and rebates. Cogenra’s solar arrays are eligible for both solar electric and solar hot water incentives, enabling customers to take full advantage of federal, state and local solar programs.
Federal Business Solar Incentives
Under the Emergency Economic Stabilization Act of 2008, businesses that invest in new solar installations qualify for a 30 percent federal investment tax credit (ITC), available as a credit against tax liabilities through 2016. However, the American Recovery and Reinvestment Act of 2009 allows taxpayers that begin construction on projects before the end of 2011, to receive a cash grant from the U.S. Department of Treasury in lieu of the ITC. Additionally, the Federal government grants businesses a five-year accelerated depreciation allowance for solar property, and for 1011 only, a 100% year 1 depreciation.
Regional Solar Incentives
Many states and cities have adopted regional programs to encourage investments in solar energy. For a complete list of up-to-date state, local and utility incentives and policies, visit the Database of State Incentives for Renewable Energy.
California Solar Incentives
California has a strong track record of providing rebates to take advantage of the state’s abundant solar resources.
The California Solar Initiative, launched in 2007 and administered by the California Public Utilities Commission (CPUC), offers financial incentives to customers in California’s investor-owned utility territories. Calculated on a performance-based framework, this new incentives structure ensures California is rewarding systems that provide optimal clean energy generation.
- Solar Electric Program: The performance-based incentive (PBI) for new PV installations provides a monthly stream of payments for five years upon commissioning of the system. The payments depend on the amount of electricity generated (kilowatt-hours produced) and a flat incentive rate determined at the time of commissioning. The incentive rate offered to new systems decreases over ten steps as more solar power is installed throughout the state.
- CSI-Thermal Program: The California Solar Initiative (CSI) recently launched a new solar thermal program providing upfront cash rebates to businesses that install solar water heating systems. Like the solar electricity incentive, the value of the cash rebate is determined by expected performance with sliding incentive levels as more businesses adopt solar water heating systems.
- California Property Tax Incentive: Under the California Revenue and Taxation Code, solar energy systems are completely excluded from property taxes. Duel-use equipment, including pipes and ducts that carry solar and traditionally sourced energy, also qualify for the property tax exemption at 75 percent of their full cash value.
