Western Growers continues to communicate with solar providers and financial institutions involved with Western Growers Solar Energy Initiative (SEI) to periodically provide information that may be useful to WG members interested in solar power. This update contains information related to the federal tax credit deadline and some considerations to determine if solar power is the right fit for a business.
According to Greentech Media Research, U.S. solar installations grew by 30 percent in 2014 and are forecast to maintain this strong growth trend though 2015. Some believe the federal Investment Tax Credit (ITC) — which currently stands at 30 percent — has motivated a number of companies to pursue solar power options. Unfortunately, the ITC is expected to expire by the end of 2016. Congress may renew ITC prior to the deadline; however, if it does, the percentage of the tax credit is expected to be reduced. In order to qualify for the current 30 percent federal tax credit for solar systems on commercial properties, solar systems must be placed in service before December 31st, 2016.
Assessing reductions in energy bills as well as the logistics of a system installation in a property can make a big difference when determining if solar power is the best fit for your business. Solar power may be the best long-term solution for businesses with high energy costs and with fixed ground mount systems as they offer the most flexibility and return on investment. Businesses can benefit from assessing their current energy consumption and system. For example, in some cases, an offset of 100 percent can be realized if a solar system is in place.
WG members interested in periodic updates can join our SEI distribution list by contacting Sonia Salas at (949)-885-2251.
The information included in this update was provided by solar vendors participating in this Initiative. Western Growers is not affiliated with, does not endorse and does not require the use of any particular financial institution or solar provider. Western Growers members are solely responsible for selecting their financial institution or solar provider.