Want Free Solar?
​Free solar is fake news. No matter how solar companies of low integrity try to spin reality, installing a solar electric system for your farm, business, or home will always have costs. The resources that may be affected could be related to the initial cost to install the racking systems for the modules, the PV, the modules themselves, the safety equipment required by your local codes, the inverters, and the components required to connect the primary equipment. These parts are referred to as BOS or the balance of systems.
Hidden Cost
​You also have a cost associated with the space needed for the array. If an array is on a rooftop, which is often the cheapest option, roofing updates, and higher cost of repairs are real considerations that many organizations will not educate you about. And the cost to clean the modules is also affected. If you do it yourself, rooftop activities are dangerous and you should consider the risk involved! If you hire professionals to do this work, they will charge you significantly more for the risk that they. A ground-mounted system may cost more upfront, but is much easier, and safer, to maintain. However, you have now lost some of your land. Which is a very valuable resource!
Ground Mounted Solar
​Ground-mounted racking for photovoltaic systems comes in many shapes and sizes today. Some of them have panels located only inches above the ground. Vegetation maintenance becomes an additional cost and risk to the modules if any part of the panel is less than 3 feet from the ground. Flying debris from lawnmowers, weed whippers, or farm equipment can damage the modules. That would not be covered by warranty and could be quite expensive to repair in the future if replacement parts of identical appearance were to be used for the repair.
All of that being said, some tremendous incentives are being provided by the federal government, certain state governments, certain utilities, and commercial or agricultural programs. Your exact location, utility provider, tax obligation, and entity classification would all need to be known to determine what incentives you would qualify for, and we are happy to help you do that with integrity! Below is an example of the financial incentives that many businesses could be eligible for in our local area.
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​Any business or residential customer would also qualify for a federal tax credit in the amount of 30% of the $225,000 remaining. So as long as you have a large enough federal tax burden, these tax savings would lower your real cost to $157,500. This tax credit can be carried over for up to three years to ensure that you can use it all. If you are a nonprofit organization or a business that does not have much federal tax liability, it is an option to sell this tax credit, if done properly, for around 90% of its value, to a different business entity, that does need the tax credit.
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Depending on your geographic location, your business may qualify for an additional 10% adder tax credit. We can quickly determine that for you. Once we have a copy of your electric bill and your address if you do qualify for this incentive, it would lower your net cost to $135,000.
​As a business entity that invests in business equipment, that equipment can be depreciated over time. Most equipment can be depreciated over 5 to 7 years. But solar is special! Any solar electric system installed in 2023 can depreciate 80% of its calculated value in the first year. If you qualify for some of the tax credits we've discussed above, your depreciation calculation is reduced by 50% of any of the tax credits that you get. For example, if you got all 40% of the tax credit possible, you would only be able to depreciate a total of $200,000 for your system. 80% of that in 2023 and the other 20% in 2024. However, these numbers will change next year also. For 2024 installations, only 60% can be deducted in the first year, 20% in the second year, and 20% in the third year. Each year that number reduces, so getting in now will allow you to receive your money back faster! Does this sound complicated? Do you think that the solar company you see on TV, or hear on the radio will accurately understand or honestly relay the incentives you qualify for?
Watch this video to find out more about these incentives!
There is no such thing as free solar! But for the right businesses, in the right locations, who will jump through the hoops necessary to apply for the incentives available, your system will pay for itself within a few years. But even if you aren’t the perfect match to get your system paid for in a couple of years, the incentives that exist for everyone will allow for the energy production to cover any remaining costs, if the system is designed properly and installed with quality and integrity.
