SOLAR INCENTIVES FOR YOUR BUSINESS
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FEDERAL INVESTMENT TAX CREDIT (ITC)
Businesses can deduct 30% of the cost of their solar energy system from their federal taxes the year the system is operational or up to 20 years into the future. This credit is part of the Inflation Reduction Act and is available through 2032. After that, it is scheduled to decline to 26% in 2033 and then drop to 22.5% for businesses beginning in 2034.
The Inflation Reduction Act (IRA) offers 10% in additional credits to the base Investment Tax Credit (ITC) for specific project qualifications:
- Domestic Content: Projects that use domestically produced components
- Energy Communities: If a project is located in an "energy community".
- Low-Income Communities: Projects in low-income communities
These adders can significantly increase the financial incentives for renewable energy projects, enhancing their viability.
FEDERAL & STATE LEVEL DEPRECIATION
Businesses can depreciate the value of their solar installation over time, reducing their taxable income. At the state level, the depreciation is spread over 6 years, while at the federal level, 60% can be depreciated in the first year. Typically, 85% of the full solar system cost can be depreciated over five years.
Bonus Depreciation:
- 60% depreciated in the first year for projects that go online in 2024
- 40% in 2025
- 20% in 2026
- 0% in 2027
The Modified Accelerated Cost Recovery System:
MACRS) allows solar energy system owners to depreciate their investment over a short period for tax purposes, generally over five years. This accelerated depreciation can significantly reduce the tax burden on businesses by allowing them to recover costs quickly, enhancing the financial attractiveness of investing in solar technology.
SOLAR RENEWABLE ENERGY CERTIFICATES
Solar Renewable Energy Credits (SRECs) are tradable credits that represent the environmental value of generating one megawatt-hour (MWh) of electricity using solar power. These credits can be sold or traded, helping meet mandatory renewable energy targets, thus incentivizing solar power investment and development.
By combining these incentives, businesses can significantly reduce their initial costs and see a return on investment typically within 4-7 years.
EXPERIENCE THE POWER OF THE SUN WITH BAKER ELECTRIC
In a world committed to energy transition,
It's not a matter of now or never, it's a matter of now is better.
With the current solar incentives, cutting-edge cost-saving technology, and impressively short payback periods, going solar has never been more accessible or more rewarding.
Don't let another day pass without harnessing the financial benefits of solar energy. Consult with the experts at Baker Electric and explore the best option available for your business. Start your solar journey today and stop the unnecessary drain on your resources. Now is the time to shine with Baker Electric.
BATTERY STORAGE INCENTIVES & REBATES:
Federal Investment Tax Credit (ITC):
The Federal Tax Credit ITC offers significant financial incentives for businesses with battery storage systems, including a 30% tax credit on the cost of the system. This makes renewable energy more affordable, encourages adoption, reduces energy bills, and supports grid stability while promoting environmental sustainability.
Self-Generation Incentive Program (SGIP):
Modified Accelerated Cost Recovery System (MACRS):
Demand Response
The CA Demand Side Grid Support (DSGS) Program benefits battery owners by offering financial incentives for supplying stored energy back to the grid during peak demand. This not only helps stabilize the grid but also reduces electricity costs for participants, promoting energy sustainability and economic savings.
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ROOFTOP SOLAR SOLUTIONS
Ideal for commercial establishments such as manufacturing plants, warehouses, logistics centers, industrial complexes, retail outlets, and hospitality venues with with a bill that averages $5,000 per month or more.
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CARPORT SOLAR SOLUTIONS
A perfect solution for properties with limited rooftop space, free-standing carport solar installations not only generate additional solar power but also provide shade and protection for employee vehicles.
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ENERGY STORAGE SYSTEMS
Essential for minimizing peak demand charges, these systems automatically utilize stored electricity when solar panels are not producing. Energy storage is particularly beneficial for businesses facing substantial charges during peak hours.
DISCOVER SOLAR & ENERGY STORAGE SOLUTIONS WITH BAKER
Unlock the benefits of solar energy for your business with Baker Electric, serving Southern California customers. The array of solar incentives available can lead to substantial savings, often resulting in a quick payback period (typically under five years) and a significant return on investment (usually exceeding 10 percent!).
To begin exploring solar options tailored to your business needs, connect with Baker Electric. Our team is dedicated to understanding your project goals and energy usage, guiding you through an initial project design. Plus, if you're ready to receive custom solar quotes, we can connect you with our network of pre-screened installers in the Southern California area.
Embrace a sustainable future and elevate your business with Baker Electric's solar solutions. Contact us today to start your journey towards energy independence and financial savings.
TRUSTED PARTNER FROM ROUTINE TO COMPLEX
It’s official: Southern California businesses & organizations are paying more for electricity than anywhere else in the country.
How can you make a meaningful difference to lower your electric bill? The most obvious answer is utilizing solar power. If getting solar has ever been in the conversation for your business or organization, there are two very important changes coming that you must know about before it’s too late.
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BAKER BENEFITS
Key Financial Highlights of Going Solar with Baker Electric
- Enjoy a net cost of up to 50% of the initial purchase price when utilizing current incentives.
- Achieve a Return on Investment (ROI) typically within a 4-8 year timeframe.
- Increase your net operating income with the potential for millions in cost savings.
- Demonstrate your commitment to sustainability, reduce your environmental impact, and lead by example in your community.
HOW MUCH ARE YOU LOSING BY NOT GOING SOLAR?
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WHY BAKER?
As electric bills continue to rise, businesses are feeling the pressure to switch to solar energy. However, you deserve to hear the truth without the scare tactics. Baker Electric has been a trusted provider of renewable energy solutions in Southern California since 1938. We pride ourselves on delivering accurate information and being reliable stewards of sustainable energy.
Incentives for going solar are evolving, but it's not a matter of now or never—it's a matter of now being better. Make an informed decision for your commercial property by getting a free solar analysis.