ComEd offers a Distributed Generation (DG) Rebate program to help you offset the out-of-pocket costs of installing a qualified renewable energy generating system. The DG Rebate is available to ComEd commercial and industrial (C&I) customers that take net metering service or customers taking community supply service and that meet program requirements. This incentive totals $250 per kW installed; not to exceed 2,000 kW.

The Modified Accelerated Cost Recovery System (MACRS), established in 1986, is a method of depreciation in which a business’ investments in certain property are recovered, for tax purposes, over a specified time period through annual deductions.

The IRS has classified solar PV equipment as 5-year property, allowing a commercial taxpaying entity the ability to expense or write-off a solar investment quickly. The added tax deduction can help further boost a solar project’s return on investment (ROI).  NOTE:  your project might qualify for even faster write-off using Section 179 depreciation allowances.  Congress frequently tampers with the Section 179 limits and your tax professional should guide you accordingly.

For small rural businesses, a USDA REAP grant can potentially provide grant funding for renewable energy projects (wind or solar) or energy-efficiency retrofits.  These grants also provide loan guarantees used to finance energy projects.

If a business is located in a rural area with a population size under 50,000—and also meets the definition of “small business”—the USDA REAP grant can provide up to 25% in grant funding. Even businesses with several hundred employees can potentially meet the definition of “small business.”  This grant is highly competitive, but can provide financial assistance if awarded.  Stateline Solar provides grant-writing services and helps our clients land grant-funding. Keep in mind grant funding is also considered taxable income.