The current financial incentives for the installation of a solar system that uses solar energy to generate electricity (“Solar PV”) in the commercial/industrial sector presently breaks down into the following three categories. For a detailed analysis of Financial Incentives on a State-By-State basis, including Federal Programs visit www.dsireusa.org. All Solar PV systems sold by Solar Systems International, Inc. incorporate components that meet all necessary standards to qualify for applicable financial incentives.

These are programs typically run at the state or local level. They provide funds toward the cost of purchasing and installing a qualified grid-interactive Solar PV system and are sometimes loosely referred to as “Rebates”. 

Participation in these programs in California depends on the business location and the utility provider. For most businesses in California the program is administered by the local utility under the California Solar Initiative (“CSI”). Presently the dollar value of commercial “Rebates” under the CSI program varies among the Investor Owned Utilities. For commercial rebates applicable to your utility provider visit www.sgip-ca.com. However, many local utility companies in California operate their own programs. Solar Systems International, Inc. will assist you in assessing your particular entitlements and assist you through all stages of the application process.

Tax credits are presently available for commercial Solar PV at the Federal level. The following information is presented for convenience only and is subject to change. Before purchasing a Solar PV system you should consult with a qualified tax professional to determine your particular tax benefits.

            The Energy Policy Act of 2005 (“The Act”) creates a Federal Energy Tax Credit of 30% for qualified Solar PV placed in service between January 1, 2006 and December 31, 2008[1]. Under The Act a Solar PV system is considered “purchased” at the time of installation. 

Note: Although there is presently no limit on the amount of Federal Energy Tax Credit that may be earned for the purchase and installation of a commercial Solar PV system under The Act, other tax regulations may limit the amount of tax credit that may be taken during a given year. Consult your tax professional concerning yearly tax credit limitations and applicable carry-forward and possible carry-back use of the Credit.

Under the Modified Accelerated Cost-Recovery System (“MACRS”), businesses can recover investments in Solar PV through depreciation deductions. The current MACRS class for Solar PV is five years. Consult your tax professional about depreciation recovery of your particular investment. Your tax professional may be able to help you implement even more advantageous cost recovery measures.