Complete Guide to Commercial Solar Incentives in 2024
Feb. 12, 2024
Did you know you can qualify for incentives when you install solar panels for your business?
Commercial solar installations are eligible for incentives that can both reduce upfront installation costs and help you make money off of your investment.
Keep reading for a breakdown of the best commercial solar incentives in 2024 and to find out how you can qualify for savings.
Best Commercial Solar Incentives in 2024
It’s hard to keep track of all the commercial solar rebates, tax credits, and incentives out there. Some of them are fairly minor and only available to customers of specific utilities in specific regions. But others are extremely valuable and can save your businesses tens of thousands of dollars on a solar installation.
Here’s the best of what’s out there:
Federal Solar Tax Credit for Businesses: Investment Tax Credit
The commercial solar tax credit, formally known as the investment tax credit (ITC), is the best solar incentive for most businesses. The federal solar tax credit for businesses reduces your federal tax liability by 30% of your solar installation costs with no maximum. It’s an upfront tax credit that does not vary based on system performance—it is fully based on system cost.
Federal Solar Tax Credit for Businesses: Production Tax Credit
The production tax credit (PTC) is a federal tax credit that varies based on system performance. You’ll receive a base credit per kWh of electricity your solar panels produce, which you can claim every year for the first ten years your system is in operation.
Generally, a commercial solar project can only claim either the ITC or the PTC—not both. For most New England businesses, the ITC is a more lucrative option.
Modified Accelerated Cost Recovery System (MACRS)
MACRS is a method of depreciation that allows businesses to recover their investments in certain tangible property over a specified period of time through annual tax deductions. Many commercial investments qualify for MACRS depreciation, including solar panels. Commercial solar panels are eligible for a cost recovery period of five years.
Net Metering for Businesses
When you install commercial solar panels, you’ll enter a net metering agreement with your utility company, which allows you to sell power to your utility. You can send the excess electricity your solar panels generate to the grid in exchange for a credit to your account. You can use your credits to buy electricity from the grid when your solar panels are not producing enough. Net metering credits don’t expire, so you can rack up a ton of credit in the summer when the days are long and solar output is high and use them in the winter when there’s less sunlight and therefore less solar output.
ConnectedSolutions for Businesses
ConnectedSolutions is a Massachusetts solar incentive program for battery storage. When you enroll a battery in the ConnectedSolutions program, you will earn incentives by allowing your utility to discharge energy from your battery during peak demand periods. Your utility will only pull energy from your battery during the summer, from June through September, for no more than 60 times each summer and no more than 3 hours per event.
Own Your Power with Commercial Solar Panels
Installing solar panels for your business is the best way to take control of your electric bills and protect your business against grid instability issues. In 2024, you have excellent opportunities to save on commercial solar installation and make extra money off your investment with incentives. Boston Solar can help you navigate the incentive process to ensure you aren’t leaving any money on the table when you go solar. We are the leading commercial solar company in New England with over 12 years of experience and thousands of solar installations under our belt.
Save on commercial solar panels! Call 617-858-1645 or contact us to learn more about the commercial solar incentives your business qualifies for.