Commercial Solar Grants and Incentives

For Maryland and DC businesses there are a number of financial incentive and grants available. The process of securing funds is fairly involved, in terms of paperwork and supporting documents.

MARYLAND INCENTIVES

Solar Energy Services Takes Care of The Whole Process - Requiring Only Your Signature.

COMMERCIAL SOLAR HOT WATER

Here's a summary of the available incentives:

Federal Tax Credit of 30% of system - no cap
Maryland State Grant of 15% of system cost up to $25,000
MACRS 5 yr depreciation schedule

COMMERCIAL PV (SOLAR ELECTRIC)

Federal Tax credit of 30% of system, no cap
MD Grant of up to $25K at ...
$500 per kW for the first 20 kW (DC) of capacity
$250 per kW for the next 30kW (DC)
$150 per kW for the next 50kW (DC)
MACRS 5yr depreciation schedule
Sale of RECS

DC INCENTIVES

Federal + DDOE Renewable Energy Incentive Program for SOLAR ELECTRIC

Here's a summary of the available incentives:

Federal Tax Credit of 30% of system - no cap
District Dept of the Environment (DDOE) will provide a grant based on the following: $3 each for the first 3,000 installed watts/equivalent capacity, $2 each for the next 7,000, $1 each for the next 10,000

Financing a commercial system is easier than you may think. There are tremendous government incentives (hyperlink to our module?) to help offset the capital cost. Additionally, there are third party financing models that can be very attractive, allowing for positive cash flow on the renewable energy investment in the first month. Ask us about our partners who provide project financing. SES also provides assistance with grant applications for state rebates.

Solar Water Heating can be incorporated into new construction at a lower cost than retrofitting, but retrofits are very common and cost effective. If a building has a central hot water supply and solar exposure, it is often very cost effective to introduce solar to preheat the existing water heater – be it gas, electric, propane, oil, or other.

What Are SRECS?: SRECS = Solar Renewable Energy Credits. These are tradable credits that represent all the clean energy benefits of electricity generated from a solar energy system. Each time a solar electric system generates 1,000 kWh (1MWh) of electricity, an SREC is issued which can then be sold or traded separately from the power.
How Will SRECS Give Me a Return on My Investment?: Depending on the contract you choose via Sol Systems; you can reduce your solar electric system's cost anywhere from 20 - 40%. There are a variety of contracts that Sol Systems may suggest. For example, Sol Annuity is a long-term solution that gives you guaranteed prices for your SRECS even when spot market prices fall. You will receive a fixed, quarterly payment for each SREC produced over a 5 year term. For example, a system that produces 1 SRED/Quarter at a fixed rated of $325/SREC would generate $6500 over a 5 year period. You will receive your first payment 4 to 6 months after signing up with Sol Systems. After that, you will receive a quarterly payment in Feb, May, Aug, and Nov based on the number of full SRECS your system produces.

There are other contracts that give you a lump-sum payment up front, based on the size of your system. There are still other Sol System contracts that monitor SREC trading platforms and legislative changes and establish a floor price and a target price for your SRECS. They will enter into SREC purchase agreements that clear their aggressive floor and achieve their target SREC price. You receive a quarterly payment less a 5% brokerage fee.
How Much Are My SRECS Worth?: SREC's value differ from State to State, and year - to -year; depending on a variety of factors such as supply and demand, compliance fees dictated to the energy suppliers buying your SRECS and other variables. Most homeowners have limited options for selling their SRECS because most energy suppliers are not willing to engage directly with small systems owners. That's why SES have partnered with Sol Systems to provide you with reliable financing solutions that are tailored to fit your needs.
Who Will Buy My SRECS?: Energy and/or Utility Suppliers will give you a cash check for your SRECS. Solar RPS (Renewable Portfolio Standard) requirements demand that energy suppliers or utilities procure a certain percentage of electricity from qualified solar renewable energy resources in a state. These suppliers can meet solar RPS requirements by procuring SRECs from homeowners and businesses who own solar systems and produce SRECs.