Question 1

How do I know if my business can benefit from solar energy?

Accepted Answer

There are a multitude of factors that go into determining the feasibility of a solar energy project. Every business is different, with varying objectives, differing utility providers and rate schedules, numerous environmental factors to consider, and so on. SUNCAP aims to lay out these answers as clearly as possible, as quickly as time allows. Our team will conduct a thorough analysis of your business's energy usage and potential solar panel installation sites to determine if solar energy would be a viable and cost-effective option for your business. Additionally, we will assist you in navigating any regulatory requirements, such as state and federal tax incentives, that may be available to your business as a result of implementing solar energy solutions. Our goal is to provide a tailored solar panel solution that maximizes your energy savings and enhances your overall business operations.

Question 2

Will solar completely eliminate all expenses from the utility company?

Accepted Answer

The extent to which solar can offset your utility bills depends on factors like
the size of the system, your energy consumption, and the utility's rate
schedule and policies. Excess energy generated by the solar system can
often be credited towards your utility bill through net metering, but there
may still be some fixed charges or fees associated with being connected
to the utility grid. In the majority of cases, solar energy boasts a solid return-on-investment and quick payback period, though every business will have a multitude of different factors to consider. At SUNCAP, education and a consultative approach are the core pillars of our foundation.

Question 3

What kinds of incentives are available for businesses that go solar?

Accepted Answer

SUNCAP is dedicated to helping businesses transition to clean and efficient energy solutions, and that includes education on available incentives. There are a variety of incentives that can help businesses further improve their financial outlook for a solar energy project:

- Federal Investment Tax Credit (ITC): The ITC is a federal tax credit that allows businesses to deduct up to 30% of the cost of installing a solar energy system from their federal tax liability.

- Domestic Content Bonus Tax Credit: The domestic content bonus credit was designed to boost American manufacturing, by providing a 10% bonus to the ITC for projects under the investment tax credit (ITC) for meeting domestic content requirements. US Made Solar Panels and/or US made Steel satisfy the domestic content requirements.

- Direct Pay ITC (NPO/Municipalities): The new Inflation Reduction Act has introduced the Direct Pay provision, allowing tax-exempt organizations to be eligible for the Investment Tax Credit (ITC) for solar installation. Before the provision, nonprofits had to create a tax burdened entity for investors to take advantage of the tax benefits. Direct Pay is a refund of the 30% tax credit as a direct payment, reducing the cost of installation and increasing the return on investment. Direct Pay is received after the PTO date of the
solar installation and filed in the tax cycle in the beginning of the year.

- Accelerated depreciation (MACRS): Businesses may be eligible for accelerated depreciation, which allows them to deduct the cost of their solar energy system over a shorter period of time, reducing their taxable income.

- Net energy metering (NEM): NEM allows businesses to receive credit for the excess energy their solar panels produce and send back to the grid. This credit can be used to offset your business's energy costs.

- State and local rebates: Many states and local governments offer incentives and rebates for businesses that install solar panels. These incentives can vary depending on your location and can help offset the upfront costs of installation.

- USDA Rural Energy for America Program (REAP): This program provides grant funding and guaranteed loan financing to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements to their business. Grants are available for up to 50% of the total cost per project.

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