Solar PV Commercial Incentives
Federal Tax Credit: Commercial building owners are eligible for a tax credit worth 30% of the installed cost of a solar energy system (system cost before rebates and incentives). For example, the federal tax credit for a commercial solar installation costing $425,000 would be:
$425,000 X 30% = $127,500
If this tax credit exceeds a company’s federal income tax liability for the year the solar energy system is installed, the tax credit may be carried forward through 2016.
Accelerated Depreciation: Commercial building owners who invest in a solar energy system are usually eligible for federal income tax deductions through the Modified Accelerated Cost Recovery System (MACRS). A 34% corporate tax rate is typical. NOTE: There are many different ways to depreciate your investment in a solar PV system; please consult a tax professional.
Commercial/Municipal/Not-for-Profit Rebate: Con Ed customers are eligible to receive a Base Incentive of $1.00 per Watt-DC for the first 50kW of installed capacity per meter and Second Tier Incentive of $0.60 per Watt-DC for installed capacity over 50kW and up to 200kW per meter of solar PV installed on their building.
New York City Property Tax Abatement: Building owners who install a solar PV system are eligible for a property tax abatement worth up to 10% of the installed cost of the system after the NYSERDA incentive, capped at $250,000 total. This tax abatement is spread equally over four years (up to 2.5% of eligible system costs per year, capped at $62,500), and may not exceed one’s property tax liability for any given year. If building owners wish to apply for this incentive, they will need to hire a New York State registered architect or professional engineer to file the paperwork with the Department of Buildings.
PSEG LI Incentives
Commercial Rebate: PSEG LI customers are eligible to receive an incentive of $0.66 per Watt CSI-AC of solar PV or a maximum rebate of $66,000.
Municipal/Not-for-Profit Rebate: PSEG LI customers are eligible to receive an incentive of $1.32 per Watt CSI-AC of solar PV or a maximum of $132,000.
The Solar Entrepreneur Pilot Municipal and Not-for-Profit Lease Program will have a base rebate of $0.66 per Watt CSI-AC or a maximum rebate of $66,000.