Incentives to Go Solar

Reap Grants

The USDA’s Rural Business Service offers REAP. The program offers both grants and loan guarantees to farms and rural businesses to invest in renewable energy systems. Qualifying applicants will receive a grant of 25% of the total project cost, up to $500,000.

Solar power is already a wise financial investment, but REAP grants are part of our strategy to help you recoup the majority of your project costs within the first year. Ag Solar experience in the agricultural industry has resulted in a 98% success rate in REAP grants awarded!

ITC

The Federal Investment Tax Credit (ITC) allows you to deduct up to 30% of your project’s cost from your federal taxes. If you don’t have enough tax liability to claim the entire credit in a single year, it has a 20 year carry-forward.

2019 is the last year to receive the full 30% ITC. Starting in 2020, the tax credit percentage starts to reduce annually. With a diminishing window of tax credits, now is the time to take advantage of this great incentive!

Depreciation

A solar power system is a perfect investment to keep depreciable equipment on your books. You can use the standard 6-year MACRS depreciation schedule or select Section 179 for full depreciation in the first year. And, unlike some other equipment purchases, a solar power system will continue to save you money for decades to come.

Other Incentives

Many states, local municipalities, and even utility companies offer their own incentives for renewable energy systems. These often come in the form of tax credits, rebates, or discounts.

Some utility companies offer net metering which means you could receive a bill credit or actual cash payment in exchange for your excess power generation.

Ag Solar’s expert team will help you navigate any additional local incentives that may be available to you and can work directly with your accountant to maximize the return on your investment.