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Federal Solar Incentive Overview and Section 1603 Renewable Energy Grants

The two main commercial solar incentive programs available at the federal level are:

  • Section 1603 Renewable Energy Grants. Project started in 2011 receive 30 percent payment from the Treasury no more than 60 days following solar energy system activation. After 2011,
  • Accelerated depreciation + bonus depreciation (2010-2012). A 100% bonus depreciation is available for 2011; in 2012, the bonus portion of the accelerated depreciation schedule goes to 50%.

Beyond this, a number of state governments and municipalities offer tax abatements, solar rebates and other incentives that can significantly increase the ROI of a given commercial solar energy project.

30% Federal Investment Tax Credit (ITC)

Under U.S. Code Title 26 (Section 48(a)(3)), the federal government extends a corporate tax credit to businesses that invest in renewable power. The types of eligible solar technologies include: solar water heat systems, solar space heat, solar thermal electric, solar thermal process heat and photovoltaics (PV). The credit -- or grant (see above) -- is fixed at 30 percent. Note that the credit for businesses is not constrained by a dollar-value cap. So regardless of whether you install a $100,000 system or a $1 million system, your company is permitted to take a 30 percent credit. In October 2008 Congress voted to extend the ITC for eight years, through 2016.

State Incentivers Vary Please check our links page for the DSIRE weblink


Solar Rating And Certification Corporation Logo
Exclusive Distributor of Thermal panels from Advanced Thermal Solar LLC

Potential Uses:
Domestic Hot Water Heating -Typically for showers, laundry, dishwashers, sinks.
Radiant Heating - space heating for living area or storage area
Pool Heating - for indoor pools or outdoor pools to extend the season.
Ice Melting - Heating driveways and walkways

Contact us
today, so that we can get you started on renewable energies!