Rebates and Incentives for Commercial Solar Panels and Alternative Energy Projects
By mandating large investor-owned utilities to obtain 30% of their power from renewable sources, Colorado is setting the national standard as a leading provider of clean, renewable energy. On March 22, 2010, Governor Bill Ritter signed the bill, stating that the new standard is the “best in the Rocky Mountain West” and one of the highest in the country. Therefore this has lead to many great commercial solar incentives!
Solar’s environmental benefits are essential, but so is the fact that the investment you make in your commercial solar project will shield you from rising electricity bills for years to come, while also providing a better return than many other investments – all without risk! Plus, seeing your meter “spin backward,” seeing your utility expenses halved or eliminated, and adding value to your property is extremely satisfying… all while knowing you’re helping the environment!
Alt E Wind & Solar will also gladly take care of any refund process for you, from beginning to end. Some of the commercial solar incentives and rebates available to you are listed below.
Rebates and Incentives
Commercial Solar Panel Incentives:
Federal Income Tax Credits/ Investment Tax Credit (ITC)
After subtracting any state/local incentives, the 30 percent Federal Income Tax Credit essentially lowers the out-of-pocket cost of solar by 30 percent. Therefore this credit reduces federal income taxes paid to the IRS dollar for dollar. This tax credit also has no upper limit. Click here for additional information on the ITC.
Modified Accelerated Cost Recovery System (MACRS)
The MACRS is a method of accelerated depreciation. In addition to the 30 percent tax credit, the MACRS allows a corporation to write off 85 percent of the total cost of a commercial solar PV system when used in conjunction with the ITC. This depreciation write-off can be taken in full in the same tax year as the commercial solar PV system is installed, or it can be spread out over as many years as needed.
Xcel Energy Rebates
Xcel Energy’s Commercial & Industrial Solar Rewards Program incentive amounts will step down over time as certain MW targets are met. Incentive amounts are reflected as of 1/1/24:
- Commercial solar systems sized between 8kW – 250kW DC there is no longer any upfront cash rebate. Instead Xcel pays $.04 per kWh of actual production (paid monthly for 20 years), in addition to the savings on your electric bill.
- Commercial solar systems sized between 250.1 kW – 1 MW DC there is no upfront cash rebate. Instead Xcel pays $0.035 per kWh of actual production (paid monthly for 20 years), in addition to the savings on your electric bill.
- There is also an upfront adder for projects that serve income qualified customers or disproportionately impacted communities of $0.15 per watt.
- Commercial solar systems larger than 1 MW DC the incentive will be determined through competitive bid process.
City of Fort Collins Utility Rebates
Commercial solar customers can get up to $50,000 in incentives. The rebate amounts are based on $250 per kW of DC system generation capacity and include a 20-year REC assignment to Fort Collins Utilities.
US Department of Agriculture (USDA)
The Rural Energy of America Program (REAP) is a USDA program that provides grants and loan guarantees to help your rural small business access finance for alternative energy initiatives. REAP eligibility and availability varies, so call us right now at 970.482.SOLAR (7652) or click here to learn more.
State of Colorado
State sales tax waiver (2.9%)
RTD sales tax waiver (1.2%)
Other Utility Providers and Local Municipalities
Several other utilities and local governments offer limited rebates and incentives on an annual basis. However, funds allocated for these local incentives are typically consumed rapidly. Please call us 970.482.SOLAR (7652) to find out about local incentives currently available in your area.
Database for Statewide Incentives
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database of current rebates. To discover more about the incentives available in your area, click here or call us.
Contact Us Today and Learn What Solar Can Do for Your Business!
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734 Elk Ranch Ln
Fort Collins, Colorado 80524
T: 970 482-SOLAR (7652)
F: 970 498-0892