There are several way to offset the costs of a solar project. Our team will work with you to identify the incentives and financing options that apply to you.

ITC (Investment tax credit):

30% ITC is a tax credit offered by the federal government to incentivize the development of solar energy projects.  This acts as a credit against tax liability for both residential and commercial entities.

macrs (Modified accelerated cost recovery system):

MACRS allows the depreciation of the system to accelerate to a six year timeline.  Currently a 50% bonus depreciation exists where 50% of the system is depreciated in year 1 with the remaining balance depreciated over the next 5 years.  The total basis of depreciation however is reduced by half of the ITC, in other words, you depreciate 85% of the system’s total install price.

SRECs (Solar Renewable Energy Credits)

An SREC is defined as 1,000 kWhs of generation.  These credits have value in the marketplace in the form of a commodity that reduces the carbon footprint for entities that look to do so voluntarily or under mandate.  

The IPA (Illinois Power Agency) regulates the solar market in Illinois.  This market is used to provide the investor-owned utilities in the state with the necessary credits to meet their RPS (Renewable Portfolio Standard) requirement.