Most purchases made in an individuals life time don’t come with the peace of mind provided knowing they will produce a return on their investment. There is no return on the cars we buy, our new cabinets, and the monthly utility bills. However, we expect a return on our investment in clean, green, renewable, energy. Fortunately with tax credits, SRECS, net metering, and lower utility bills we can receive a return on a great investment.
When we evaluate this equation we can question, “What exactly are the gains from this investment?” The benefits of reduced pollution, flexible infrastructure with distributed energy, and personal independence from market volatility all contribute to some of the biggest and most obvious gains.
A solar assessment will help you determine and project the dollar amount of you can expect to save from lowered utility bills over time. The links below will direct you to helpful information on state and federal incentives. In order to receive the best return possible on your investment MPI will work closely with you, helping to facilitate the process.
I. Residential Solar Credit
- Residents may be awarded up to 30% of the total installation cost off of their tax burden.
- Any residual credit can be rolled over for subsequent years until the entire allotment is met.
- Program does not expire until the end of 2016.
For more information go to the DSIRE database.
II. Commercial Solar Credit
- Businesses can choose to obtain a grant from the US treasury or to obtain the tax credit for federal business energy investment
- Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions.
For more information go to:
- 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits
- DSIRE: Grants, ITC
- DSIRE: MACRS depreciation deduction
WHAT is an SREC? SREC is the acronym for solar renewable energy credit for which there is a thriving market in most locations. One SREC represents 1000 Kilowatt hours of energy production.
WHO buys SRECs? Utility providers in states that have an RPS, or renewable energy portfolio standard, are required to obtain a some of their power from renewable sources like sun or wind powered energy. As utilities operate across states, they sometimes need srecs from one state to meet an RPS in another state.
WHERE are SRECs sold? Currently, Indiana PV owners can sell their SRECS into the markets of Ohio, Washington D.C. and a portion of the Pennsylvania only. Exactly as for any other commodity, market prices fluctuate based upon supply and demand. Lots of PV owners choose to sell through a broker to avoid fluctuations in the market and streamline the process.
Visit www.srectrade.com for SREC pricing and more information.
MPI is partnered with Solsystems to assist our clientele with various SREC trading options.
State and Local Utilities
Indiana: solar thermal water systems are exempt from your property taxes. While they do raise the value of your property, you cannot be taxed on your investment.
- Solar Attic Fans are eligible for a 50% Indiana state tax credit for up to $1000.
To view your state’s energy incentives and rebate programs go to the Database of State Incentives for Renewables & Efficiency (DSIRE).
Disappointed because there’s nothing in your area? Contact your state representatives to let them know that you support alternative energy production so they can support policies that make renewable energy more accessible for everyone.
- These are unique to each individual electricity supplier
- Examples: South Central Indiana REMC offers an Energy Efficiency Loan Program which includes solar thermal water systems.
- Indianapolis Power and Light has a rebate program for small PV systems that pays $2.00/Watt for up to $4000.00.