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Big Island and Maui Businesses Save Big by Switching to Solar
The Aloha State is perhaps the best place in the nation for businesses to make the switch to solar electricity. Not only is there an abundance of sunlight across the islands, but there are generous state and federal tax credits along with an accelerated depreciation schedule. These factors make the installation of a photovoltaic system a great investment during these difficult economic times. At ProVision Solar, we’re ready to make solar energy a reality for you, no matter where your business is located on the Big Island or in Maui. Call us today to learn more.
How Can Commercial Solar Power Benefit Your Business?
- Up to 80% of the system’s cost can be returned within the first year alone
- Reduced utility bill
- Generous state and federal tax credits
- Accelerated depreciation schedule
- Help your business go green
Save Big on Energy Costs
More Than 40 Years of Experience
Fully Licensed & Insured
Premier Solar Electric Products
A Quick Return on Your Investment
When your business makes the switch to solar energy with ProVision Solar, up to 80% of the system’s total cost can be returned to you within the first year alone. With the accelerated depreciation considered, almost 100% of the cost of the system can be returned within the first six years of PV system operation, and that’s not including the money you’ll save on your monthly utility bill. When electric bill savings are added in, complete system payback can be achieved in as little as three years, assuming the tax credits and depreciation dollars can be monetized quickly and the system is purchased out-of-pocket.
26% Federal Tax Credit
The Federal tax credit (ITC) available for the purchase of a commercial PV system is 26% of the installed cost of the system with no cap and a 20-year roll-forward period to apply for the tax credit. This percentage is accurate as of January 1st, 2021.
Commercial Solar
The State tax credit available for the purchase of a commercial PV system is 35% of the installed cost of the system or $500,000 (whichever is less) with unused tax credit dollars rolled forward until exhaustion. Under certain conditions, the state tax credit may be refundable at a reduced rate.
Federal Business Energy Tax Credit
The business energy tax credit is a 26% tax credit available to commercial businesses that invest in or purchase energy property in the U.S. Energy property includes solar and geothermal energy. The energy property must be operational in the year in which the credit is first taken. The receipt of any grant or cash rebate monies for the PV system would reduce the cost basis from which to calculate the tax credit.
Federal and State Accelerated Depreciation
An additional incentive for businesses to go solar electric is the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, businesses can recover investments in solar electric equipment through depreciation deductions. For solar electric equipment, the current MACRS property class is five years.
Energy Savings
A ProVision Solar electric system provides monthly savings on your electric bill by replacing some or all of your purchased utility kilowatt-hours with solar-generated electricity. These savings will depend on the size of the installed system, time of year, location, and the price of electricity and will be realized every month over the life of the equipment, which is estimated at 30 years. The savings potential will be even greater should the cost of utility electricity rise over time.
*Required lawyer language: ProVision makes no binding claims or guarantees regarding the accrual of tax credits and depreciation dollars from the purchase of a solar electric system. Consult with your tax advisor, accountant, IRS or Hawai'i Department of Taxation for eligibility requirements and details on how these credits should be calculated for your own individual or corporate situation
Call ProVision Solar to Handle Your Commercial Solar Installation
At ProVision Solar, we’ve been providing commercial solar services to business owners across the Big Island for more than 40 years and are now ready to expand in Maui. Are you ready to make the switch and start saving big on energy costs? Make the switch with a PV system installation for your Big Island and Maui business and take advantage of all of the financial benefits. Contact us today with any questions that you may have or to schedule an appointment.
