Solar investment tax credits equal to 30% of your solar project cost are available until December 31, 2016.
These are tax credits - not deductions - and will reduce your federal income tax liability on a dollar for dollar basis.
In Connecticut, the C-PACE loan program provides 100% project cost financing and the the utility ZREC subsidy offers a 15 year annual solar production subsidy.
Many property owners have stayed away from solar power projects in the past. The recent addition of 100% financing and annual operating subsidies at the same time that solar panel prices have decreased by more than 60% means that property owners should reconsider solar power before these incentives run out.
Combined Combining the tax credit with C-PACE and ZREC generates savings for property owners with zero up-front capital investment. For example:
- Cost of 100k solar PV system: $250,000
- 30% Federal Income Tax Credit: $75,000
- Annual C-PACE payment at $250,000 for 20 years at 5%: $20,760
- Annual solar power generation estimate: 150,000 kW
- Annual savings off of your electric bill at 18 cents/kW: $27,000
- Annual ZREC subsidy at 15 cents/kW: $22,500
- Annual property tax and maintenance costs: $6,000
- Net positive cash flow from project: $22,740
In summary, install this solar PV system on your building in this year, borrow the entire amount, save $75,000 off of your income taxes next year and also generate $22,740 in positive cash flow every year for the next 15 years. That is over $416,000 in benefits over 15 years with zero up-front investment.
As always, consult your tax adviser for your own personal tax situation.
MSL Group, Inc. arranges the funding, tax credits and subsidies for your solar project.
Why wait? Get started today.