Most commercial solar projects are eligible for a 30% Federal Tax Credit. Additionally, for unused tax credits, each one can be carried back one year and forward 20 years. This assures that all credits can be fully utilized! Read more about the federal tax incentives.
ZREC, Zero-emission Renewable Energy Credits, can earn business owners income based on the production of their solar systems. These qualified credits are sold back to Eversource or United Illuminating under a 15 year contract.
To help recoup the cost of commercial solar, each business can depreciate the system over a 5 year period with the Modified Accelerated Cost Recovery System (MACRS). The depreciation schedule follows the 5 year property half year convention:
Connecticut offers C-PACE– the Commercial Property Assessed Clean Energy allows building owners to finance qualifying energy efficiency and clean energy improvements through placing a voluntary assessment on their property tax bill.
For those who wish to lease a solar system for their commercial property, the CT Commercial Solar Lease Program allows qualifying applicants to either lease or sign a Power Purchase Agreement (PPA) for 20 years. PPAs are for municipal / school district and not-for-profit (NFP) customers only. Contact us to learn other program requirements.