Government incentives are available at the state and federal level. The federal incentives include a 30% investment tax credit (ITC). In addition, commercial installations are eligible for accelerated depreciation.
The 30% ITC is a dollar for dollar offset of your tax liability. For example, if you install a $30,000 system, you would be allowed to offset your tax bill by $9000. If you can't use all of the credit in the first year, you can carry it forward to the next year. (Our disclaimer: Consult your tax professional for all ta We are not tax accountants. Do not rely on Sunriver Solar for tax advice. Please contact a tax professional). A tax credit, therefore, acts as a dollar for dollar reduction in the cost of your solar system.
Five year accelerated depreciation is available to commercial clients. For a system that carries a limited 25 year manufacturer's warranty on the PV panels, accelerated depreciation can be a substantial benefit and effectively reduces the cost of system installation. Again consult your tax professional for further information. (Note that there are many panels currently in use for over 40 years.)
Sunriver Solar provides each of our clients with a detailed financial analysis with every proposal. Production estimates are made using the sophisticated production estimation software developed by the Department of Energy. We provide simple payback analysis as well as the more complex discounted cash flow analysis and rate of return on your investment calculations. Most systems provide a positive cash flow from day one. (As a note, the rate of return on solar systems is typically much higher than you can get in almost any but the most risky investments.)