Business Case
While each system and location are unique, after incorporating the various incentives and regulations it has never been more cost effective to install a Photo Voltaic (PV) system.
Your organization may be structured as a REIT, LLC or other non-taxable entity such as a municipality, school or church. Lakeshore Solar can arrange financial structuring to facilitate the harvesting of any available ITC, MACRS, SRECS, and other solar incentives. If there are needs to reduce or eliminate the upfront capital investment, Lakeshore Solar has relationships with large financial institutions that can facilitate these needs, while still meeting your financial goals.
Our panels come with a 25-year warranty so your investment is predictable.
To learn more about how we can help you take advantage of your solar opportunity, let Lakeshore Solar provide you with a free, no obligation assessment today.
Incentives and Regulation
Ever wonder why solar seems to be everywhere in some states, but not in others?
State legislatures and public utilities commissions enact rules that affect the accessibility of solar. These public policies, rules and economic incentives will drastically impact the cost of a solar system and must be considered in the engineering, planning, and installation of any system.
Below is a summary of some of the programs that will affect the cost and implementation of a solar power system. This list is not exhaustive and generally does not include local incentives. Lake Shore Solar can help you design a solar power system and incorporate the appropriate incentives for your specific installation.
Federal 30% Solar Investment Tax Credit – When you install Energy Star-approved solar-power systems before the end of 2016, you can claim 30 percent of the cost as a tax credit for the year you installed it. As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income.
Renewable Portfolio Standard (RPS) – An RPS law is the way a state legislature mandates that a certain percentage of all energy generation comes from renewable sources by a certain date. Utilities must meet the standards by generating renewable energy or buying it from customers. If they don’t meet the standards, they must pay fees. Utilities in strong RPS states offer solar incentives to solar PV owners because it’s cheaper than paying the fees. Eight states have mandated 100% renewables by 2045.
RPS Solar Carve Out – States with solar carve-outs in their RPS require electric utilities to generate some power from the sun.
Electric Rates – The power your solar panels produce reduces your electric bill. The higher the price of power, the more you save by generating your own, and the higher your IRR.
Net Metering – Net metering is the billing arrangement where you can sell excess electricity back to your utility for equal the amount you are charged to consume it. Factors that affect the Net Metering Agreement include individual solar system capacity, caps on program capacity limits, restrictions on “rollover” of kWh from one month to the next, new meter charge, Renewable Energy Credit (REC) ownership, eligible customers and technology (the more renewables the better), being able to aggregate meters across the property for net metering, and safe harbor provisions to protect customers from solar tariff changes.
Interconnection Rules – Interconnection rules regulate how you connect to the electric grid with the solar panels on your roof.
Solar Rebates – Rebates vary by locale and usually are provided by utility companies as a way to satisfy RPS requirements. There are both state-wide and local rebate programs available depending of the location of the solar PV installation.
State Solar Tax Credits – Like the Federal Investment Tax Credit, some states provide tax credits as well.
Solar Power Performance Payments – They are either per-kWh bonuses or Solar Renewable Energy Certificates (SRECs).
Property Tax Exemption – Installation of a Solar PV system adds value to a property. Many jurisdictions equate the increase in value to about 20 times the solar PV system annual energy production. The Property Tax Exemption eliminates taxes on that portion of the value of the property.
Sales Tax Exemption – Many jurisdictions exempt sales tax on the purchase and installation of solar PV systems.