In April 2014, Western Growers launched a Solar Energy Initiative (SEI) to periodically provide information that may be useful to WG members interested in solar power. Here are some of the most recent developments related to the current tax credit for solar systems, as well as some of the considerations to determine if a solar system is the right fit for a particular business.
We hear more and more companies are considering installing a solar system. 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 31, 2016.
Businesses can benefit from assessing their current energy consumption and system. When determining if solar power is the right fit for a business, assessing reductions in energy bills, as well as the logistics of a system installation in a property, can make a difference. 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.
To learn more about this initiative, get periodic updates and to join our distribution list, contact WG’s Sonia Salas at [email protected] or by phone at 949-885-2251.
About the SEI: It is a process WG is utilizing to provide ongoing information about the solar energy industry and also to offer WG members access to information about financial options and solar providers. The solar providers in this initiative have been vetted by the financial institutions also participating in this initiative. Although WG is relying on this vetting process, 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.