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Solar Incentives

Find The Incentive For You

There are several financial incentives in place that are designed to encourage homes and business to generate clean solar power. Most incentives are state specific but there is one incentive that applies nationwide.

30% Federal Tax Credit

The federal government has put forth an incredible incentive for those considering solar power. 30% of the eligible costs related to your solar project can be taken as a federal tax credit. As long as you or your business pays federal income taxes you can take advantage of this incentive.

Net Metering

Not only will you be selling the electricity your solar panels generate but you’ll also avoid having to buy that electricity from your power company. Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. Net metering acts as a sort of battery for your solar system, relieving customers from having to purchase expensive and maintenance-heavy batteries.

Understanding Net Metering

01.

Solar Array

Solar array converts energy from sunlight into electricity.

02.

Inverter

The inverter converts the electricity produced by the solar array from direct current (DC) to alternating current (AC) for use in your home, school, or business and measures the energy produced by the solar array.

03.

Energy

The energy is used in your home, school, or business.

meter
04.

Bidirectional Meter

The Bidirectional Meter indicates energy usage and excess energy produced.

NATIONAL SOLAR INCENTIVES FOR BUSINESSES

modified accelerated cost recovery system (macrs)

MACRS is a tax depreciation schedule that allows for accelerated recovery of the capitalized cost (basis) of tangible property through annual deductions for depreciation over a specified lifetime. Solar energy equipment that meets the qualifying criteria can typically be recovered over a period of five years under this system. However, this incentive is usually only available for businesses and rental properties.

federal income tax credit

The federal solar tax credit has been extended and reinstated by Congress to its original rate, allowing homeowners and businesses who install solar or battery backup systems from 2022-2032 to receive a 30% tax credit. A tax credit is a direct credit on the income tax owed. Additionally, businesses can receive an extra 10% tax credit by using American-made products and materials, and battery storage systems are now eligible for the credit even without being paired with solar.

STATE-LEVEL INCENTIVE PROGRAMS FOR COMMERCIAL SOLAR

WASHINGTON

The Washington State Legislature passed the 100% Clean Energy Act in 2019, which offers sales tax relief for commercial-scale solar energy systems, resulting in reduced upfront costs.

OREGON

Premier Solar NW, as a solar trade ally contractor, can help commercial solar projects in Oregon qualify for incentives from the Energy Trust of Oregon, depending on their size. If you are a customer of Pacific Power or PGE, you can contact us at (503) 828-9500 to determine if your project is eligible for these incentives.

GRANTS FOR NONPROFIT ORGANIZATIONS AND SMALLL BUSINESSES

Government and foundation grants may be available to assist your organization in covering the entire cost of a new solar energy system. Premier Solar NW has a track record of installing systems for nonprofits, local schools, colleges, and public buildings in Washington and Oregon, with many of these organizations utilizing grant funding to help finance their solar projects.

As a solar team, we are knowledgeable about local and federal grant programs that support community organizations such as schools, churches, libraries, and small businesses.

We can assist with:

Contact us to determine if your organization qualifies for a solar grant, or to nominate a nonprofit that you support.

Commercial solar projects in Oregon
Commercial solar projects in Oregon

FINANCING FOR COMMERCIAL SOLAR

If you’re looking to finance a commercial solar project, it’s important to have technical info about the project when applying for a loan. That’s where working with a solar contractor can come in handy. Solar energy is considered a safe bet by many banks, and it can be used as collateral.

You might have options like a long-term lease, a power purchase agreement, or a regular term loan to fund your project. Our commercial projects team can help you figure out the best financing option for your solar project.

PUBLIC AND PRIVATE FINANCING

Apart from traditional financing options like private banks, credit unions, or alternate lenders, there are also federal and state programs that offer low-interest loans specifically for solar energy projects. The unique aspect of these loans is that the only collateral required is the solar equipment itself.

Our commercial projects team keeps a list of recommended financing options for solar projects in your state, which may involve a loan application process. We are more than happy to provide assistance and guidance with the loan application process to help you secure financing for your solar project.

If you’re interested in learning more about these programs, contact us!

Commercial solar projects in Oregon, commercial solar installation in oregon, commercial solar in oregon

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Perhaps you’ve wondered if it’s time to make a change to your energy sources.