Right now there are several incentives to help pay for a solar electric or solar thermal system.
Xcel Solar Rewards- Xcel Energy is offering a $1.50/ watt incentive to install a solar electric system, which equals roughly 30% of the total installed cost of a system. Paid upon completion of the installation, the Solar Rewards incentive is one of the best incentives in the country.
Made in Minnesota incentive- In addition to the $1.50 / watt incentive, Xcel is offering a $3.50 / watt incentive for solar electric systems. In concert with the federal tax credit, you can save up to 90% of the upfront cost of a system! The incentive is paid over 5 years in equal installments.
30% federal tax credit- Businesses and homeowners can receive a 30% federal tax credit on the cost of a solar system.
MACRS depreciation- Businesses can depreciate a system’s cost basis on an accelerated schedule over 5 years.
PACE Financing- Property-Assessed Clean Energy (PACE) financing allows commercial property owners to borrow money to pay for renewable energy improvements such as solar electric systems. The amount borrowed is repaid via a special property tax assessment over time, typically 10-20 years. Solar electric systems produce clean, reliable power that reduce utility bills, stabilize the grid, and promote home-grown renewable energy. The major components of the system have a 25-year warranty and IPS expects at least 30-40 years of useful life out of the systems. The result is reduced utility costs and increased profits for your business.
In November 2011, The Edina city council voted to adopt the first PACE program in Minnesota. IPS is working with its partners and other city councils around the state to adopt PACE financing programs. If you are a commerical property owner and would like to bring PACE to your city, contact IPS today.