Tax Equity

Government rebates and credits can impact your costs significantly. Local, state and federal tax incentives could potentially cover up to 50% or more of your overall system costs.

Businesses can take advantage of depreciation to accelerate their ROI on a solar system. The Tax Cut and Jobs Act of 2017 provides an option for 100% bonus depreciation. Solar has a scheduled depreciation recovery period of 5 years – so you can spread it over 5 years or take it all in year 1.

A business cannot depreciate 100% of the project cost. The Investment Tax Credit (ITC) reduces the bases of depreciation by one-half of the tax credit amount allowed. With the current ITC at 26%, it will reduce the depreciable basis to 87% of the total cost. Therefore if your system costs $100,000 you will be able to depreciate $87,000 of the cost. To calculate the value, you will multiply the basis by your federal income tax rate.

For larger systems, a tax equity partner may be willing to put in the funding for a portion of the project. There are many tax equity situations – speak to your Genie solar expert to see if your project would qualify for this solution.

Of course, all systems do not receive the same tax credits; all systems and products are not created equal. You should work with a solar expert AND your accountant to understand how solar will impact you.

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.