Don’t Miss Out on Your Investment Tax Credit for Solar!
You’ve still got time to save money on the installation of a photovoltaic system (solar panels) on your commercial or industrial building – but it’s necessary to act soon. The Investment Tax Credit (ITC) for solar is gradually being phased out. For residential homeowners, it will be done by 2022. Businesses will still receive an ITC, but it will only be 10%. (Not that a 10% credit is something to sneeze at!). Here’s some background on why this is happening.
Encouraging Renewable Energy
In 2005, the federal government wanted to help boost the adoption of renewable, “green” energy, and in particular solar power, by home owners and businesses. To that end, anyone who installed solar panels on their residence or commercial building was eligible for an investment tax credit (ITC) – meaning the amount of their tax bill was reduced by the amount of that credit. State governments, and in particular our own government right here in Illinois, followed suit with their own renewable energy incentive programs. (Here in Illinois, it’s the Adjustable Block Program, also called Illinois Shines.
Solar Power is Here to Stay
It’s been 15 years, and the efficacy of solar power has been proven over and over again, especially for commercial solar installations. As a result, there’s no longer any need to offer those tax incentives to encourage businesses to go solar. The federal ITC is therefore gradually being wound down. Businesses will therefore see a net increase in the cost of a solar power system. The benefits will still remain – the use of renewable energy and a decreased electricity bill.
Now is the Time to Install Solar Power
If you’ve been thinking of installing commercial rooftop solar panels or ground-mounted solar panels, now is the time to do it. You’ll still save money on your electricity bill by installing solar, but you’ll save even more money if you install solar panels within the next two years. You want to maximize your ROI – and the way to do that is to ensure that your company will be able to take advantage of that investment tax credit.
In 2020 – this year, in fact – the ITC is 26%. In other words, 26% of the cost of your solar panel system can be deducted from your overall federal tax bill. In 2021, the ITC is 22%. In 2022 and beyond, the ITC will be 10%.
Why Do it Today?
Because time is running out for businesses to ensure that they can maximize their ROI – two years is not that long! – solar energy companies in Illinois are expecting there to be a rush on solar panel installation.
The more businesses that purchase a system, the more time is needed to custom design and install it on the roof of a building or in an area where they are ground-mounted. Some companies simply may miss the window because installation teams will be booked solid. That’s why it’s necessary to contact a representative of one of the solar energy companies in Illinois as soon as possible to put the wheels in motion, so you don’t get caught in the backlog of orders.
We’ve been talking about the Federal tax credit, but of course Illinois has its own rebate system for home owners and businesses that invest in solar. We’re sure you’ve heard about Illinois Shines (the “brand name” for the Adjustable Block Program), and its SRECs (solar renewable energy credits).
Like the ITC, these SRECs will help reduce the purchase cost of a commercial PV system here in Illinois. To find out more about Illinois Shines and how it can help your business save money on a PV system, check out their website at: https://illinoisshines.com/.
Talk to us Today
Better still,contact us at Continental Energy Solutions. We are an Approved Vendor and an Authorized Installer for Illinois Shines.No matter the size of your commercial building or buildings, we can design a system that will work for you. We can also answer any questions you may have about the ITC or the Illinois Shines program.
Why not pick up the phone and make an appointment to learn more, today! Request a Quote
Will there be a program for adding batteries to existing solar PV and storage with time shift usage / backup software?
Will there be a program to upgrade existing micro inverters to smart micro inverters?
Hi Rick, Thanks for your questions. We did a recent episode on solar + storage with Marc Thrum and Intelligent Generation is a great resource for storage related content. We’ll be doing another episode with them soon. As for inverters…I’m looking for Subject Matter Experts…know anyone?
Adding storage to existing solar is always interesting…would you like to come on the show to discuss?