Solar Makes Cents
Solar electricity is a reliable, easy, low-maintenance solution for businesses and organizations to fix the electricity rates and hedge against inevitable hikes in energy prices. Throughout Sonoma County you have seen solar installation on private buildings, government agencies, institutions, schools, wineries, and municipal property. These projects prove that through a one-time capital expenditure or other financing mechanism, businesses and organizations can achieve stable monthly electricity payments and lower operational costs for decades to come.
Besides lowering energy costs, investing in solar electricity provides clients and consumers with tangible evidence of your business' commitment to building a healthy and sustainable Sonoma County and California. We read more and more about corporations adopting sustainability requirements for their suppliers and there are many studies showing consumer preference to support environmentally responsible businesses.
This means that investing in solar has a potential multiplying effect on the bottom line. Not only will solar lower the cost of operations but also provides a competitive advantage by attracting new customers that prefer to buy or source from sustainable businesses.
Solar is not a new technology, but it is probably new for your company. Many new solar applications and financial products and incentives have come available for solar power over the past year making a solar investment more feasible for many businesses. Besides for the traditional cash purchase Sonoma County has launched a remarkable financing program by creating a special tax district under the guidelines of AB811 legislation. There are also several local and national companies that have lease products for solar investment and Power Purchase Agreements that make solar an accessible positive investment for business owners.
Solar Rebate and Incentive Programs
California Solar Rebates
California administers a rebate program through the California Solar Initiative in conjunction with local utility partners. Rebates are available for businesses and homeowners that install solar. The current rebate offered for commercial solar projects is $1.10 per watt. The California solar rebate program is a diminishing tier program. This means that the rebate amount offered will decrease over time based on the amount of solar projects reserved state-wide.
Federal Solar Incentives
Solar installations are eligible for a 30% tax credit on the total system costs
The American Relief and Recovery Act Solar Incentives
- Extended Bonus Depreciation for renewable energy capital investments
- Provides an accelerated depreciation schedule for solar projects
- Repeal of Penalty for Subsidized renewable Energy Financing
- Allows businesses to qualify for the full amount of the solar tax credit even if the projects received subsidized energy financing
- Renewable Energy Grant Option
- New program through the Department of the Treasury that provides an option to receive a grant equal to 30% of the cost of solar in lieu of the tax credit (2010)
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Solar Payback Analysis
Solar Value Analysis
