Commercial Incentives
It’s a great window of time to save money for your commercial property by investing in a solar system designed, installed and serviced by Midwest Solar Solutions. As of 2024, there are four incentive opportunities for Illinois-based companies to potentially take advantage of. They are as follows:
1. Investment Tax Credit
Just like homeowners, business owners can leverage the U.S. federal government’s 30 percent investment tax credit (ITC) that runs until 2032. The ITC provides a credit to business owners’ tax liability in the amount of 30 percent of your total solar system cost. It’s a dollar-for-dollar, nonrefundable credit.
Businesses must have the proper tax appetite to qualify for the ITC in full, though it can be carried over to the following year if necessary. Midwest Solar always recommends consulting with your tax professionals to verify you’re eligible to take advantage of the entire 30 percent credit in Year 1.
2. Illinois Shines State Incentive
Illinois residents as well as businesses, schools and places of worship can qualify for the Illinois Shines program. Annually, the Illinois Power Agency (IPA) sets prices for renewable energy credits (RECs), which are generated by alternative energy sources including solar systems.
As a registered Illinois Shines Approved Designee, Midwest Solar Solutions calculates the RECs your system will produce throughout the years. Your business transfers ownership of RECs to local power companies each time your solar system produces 1,000 kilowatt-hours. By selling your RECs, you’ll receive a built-in savings from your system’s productivity.
3. REAP Grants
The United States Department of Agriculture’s REAP (Rural Energy for America Program) grant program offers funding to for-profit businesses up to 50 percent of project cost or loan guarantees up to 75 percent of project cost.
Only certain businesses can apply for and take advantage of REAP grants. Eligibility is based on business location, and Midwest can help you determine whether the REAP grant is applicable for your company. Beyond location, farming and ranching producers with 50 percent of their gross income stemming from agricultural operations are also eligible to apply.
4. Accelerated Depreciation
Also called the Modified Accelerated Cost Recovery System (MACRS), accelerated depreciation allows business owners to deduct the cost of their solar array from their taxable income during a five-year period. Higher taxes get postponed to a later year, a nice perk. The profit-making of a solar array increases during the initial years post-installation as a result, more quickly providing complete payback of your solar system.
With these four federal and Illinois state incentives, businesses in the Metro East are in prime position to take advantage of the benefits of solar. Midwest Solar Solutions uses three-phase inverters for commercial facilities versus the one-phase inverters we use for residential properties, which results in a different voltage. Our professional, clean-cut team members with backgrounds as licensed electricians are trained on best-install practices. We are experienced designing systems for metal roofs and flat roofs many commercial properties possess. And we’re confident we can show you how going solar will pay back your investment within the product lifecycle.
Start Your Solar Journey
Understanding the different incentives available on the residential and commercial side can be a bit daunting, so we’re here to help. Midwest Solar Solutions will guide you through which incentives you’re eligible for. We get this is a big financial commitment and want to arm you to make the best decision for your specific property. Our friendly team of solar professionals is looking forward to assisting you!