The current 30 percent federal Investment Tax Credit (ITC) is a nice incentive for companies pursuing solar power options. Last year, some working in the solar industry were concerned about the potential expiration of the ITC at the end of 2016, which meant solar systems had to be placed in service before December 31st, 2016, limiting this benefit. However, this is no longer a concern.
On December 17, 2015, the U.S. Congress extended tax credits for the building of solar energy production facilities, with the credit remaining at 30 percent through 2019, then going to 26 percent in 2020, 22 percent in 2021, 10 percent in 2022 and then eliminated after 2022. The tax credit extension was passed as part of the budget bill was sent to President Obama in late December funding the government through September of 2016. This tax credit legislation is great news for the agricultural operations considering solar installations.
Agri-businesses can benefit from assessing their current energy consumption and system. Solar power may be the best long-term solution for businesses with high energy costs and, with fixed ground mount systems, they offer the most flexibility and return on investment. Western Growers is in contact with known parties in the solar industry and can offer information on this subject through our Solar Energy Initiative (SEI). To learn more about this Initiative and get periodic updates, contact WG’s Sonia Salas for more information and to join our distribution list at firstname.lastname@example.org 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.