Installing solar requires an upfront investment, but with so many cost-saving incentives available, a solar system can pay for itself in just a few years, leaving decades of free electricity.
Lank, Johnson and Tull, CPAs were able to take advantage of the 30% Federal Solar Investment Tax Credit. By reducing their federal tax liability by 30% of the installation cost, they installed the system for considerably less. As long as you have federal tax liability, you’re able to take advantage of these savings, too. But the program starts to step down after 2019.
Another attractive incentive is accelerated depreciation. This allowed Lank, Johnson and Tull, CPAs to bring all of the tax savings from depreciating the solar system to the first year, greatly reducing the upfront cost of the system.
For the system in Seaford, they were awarded a USDA REAP Grant, which is available for farms and small rural businesses to help fund energy-efficiency improvements and renewable energy projects. These grants can cover up to 25% of the total installation cost of a solar system.