There are several Federal and State-level incentive programs to consider when paying for your solar array. These incentives can be used concurrently to reduce your out-of-pocket cost and payback timeline. Whether you are a business or homeowner, a school or a non-profit, there are many options available to make your step into renewable energy an easy one.
Click on the pictures below to learn about the Federal and State incentives available in your area.
There are programs available designed to allow you to recoup a portion the up-front cost of your solar array through federal tax incentives. You can claim up to 30% of your total system cost against your overall tax liability for the year through the Solar Investment Tax Credit. As your solar contractor, ARiES Solar will provide you with your first-year tax forms to help you and your tax professional file for your tax credits.
Tax credits: A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government.
Solar Investment Tax Credit (ITC)
- Recently extended through 2019, the ITC allows both residential and commercial customers to claim 30% of the total system cost against their overall tax liability for the year.
- After 2019, the ITC will reduce over time to 26% in 2020 and 22% in 2021. After 2023, the residential credit will drop to zero while the commercial and utility credit will drop to a permanent 10 percent.
- As your solar contractor, ARiES Solar will provide you with your first-year tax forms to help you and your tax professional file for your tax credits.
Click here for more information on the ITC
Need the forms to file with your taxes? To start, you’ll need form 5695 (residential) or 3468 (commercial) from the IRS at irs.gov. Other forms may be required depending on your unique tax situation. We recommend you consult with your accountant.
USDA REAP Grant
Grants: A grant is free money applied for through a competitive process. ARiES can help you through this process. We have secured more than $7 million in grants for our customers.
ARiES Solar will take you through the process of applying for grants which will pay for 70% of your total system cost after the first year, and which will allow your system to pay for itself by the beginning of the fourth year.
What funding is available?
- Loan guarantees on loans up to 75% of total eligible project costs
- Grants for up to 25% of total eligible project costs
- Combined grant and loan guarantee funding up to 75% of total eligible project costs
What does this program do?
- Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements.
Who may apply?
- Agricultural producers with at least 50% of gross income coming from agricultural operations
- Small businesses in eligible rural areas.
More questions? You can visit the USDA website or give us a call:
Tennessee: (865) 309-4674 | South Carolina: (803) 567-1013 | Mississippi: (662) 271-5055
You may be eligible for TVA solar incentive programs if you live in the following TVA-serviced counties: Alcorn, Attala, Benton, Calhoun, Chickasaw, Choctaw, Clay, De Soto, Grenada, Itawamba, Kemper, Lafayette, Leake, Lee, Lowndes, Marshall, Monroe, Neshoba, Newton, Noxubee, Oktibbeha, Panola, Pontotoc, Prentiss, Quitman, Rankin, Scott, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Webster, Winston and Yalobusha. TVA Programs
- Green Power Switch (GPS) – This program allows system owners to sell their energy back to the Mississippi energy grid at a competitive rate. Solar installations ranging in size from 500 watts to 50kW will receive a credit for 100% of energy produced at the retail rate. If your system produces more power than you use, excess credits will be paid to you.
Don’t forget to claim federal incentives and grants you may be eligible for.
Ready to go solar? Get a free quote.
South Carolina is currently seeing a surge in solar installations due to some attractive incentives put forth by the state and by local power companies.
- Both commercial and residential taxpayers in South Carolina can claim a state tax credit of 25%, up to $35,000 over 10 years, of the costs of purchasing and installing a solar energy system. The South Carolina Department of Revenue offers forms and instructions for claiming the tax credit.
- Commercial installations, including those for businesses, municipal government entities and church organizations in areas served by utility South Carolina Electric & Gas (SCE&G) receive credits ranging from 14 cents to 22 cents per kilowatt hour produced by a solar array. The incentive will help pay off your system faster, and then offset your electric bill. More information is available at SCE&G’s renewables page.
LEARN MORE: ARiES Solar is conducting a USDA REAP Grant Workshop at Aiken Technical College in Graniteville, South Carolina on December 15th, 2016. This event is free to the public. Click here to register.
Click here to get more information or request a quote.
The Tennessee Valley Authority (TVA) offers renewable incentives in all 95 counties for Tennessee residents who wish to become Generation Partners. They can enroll in the Green Power Switch (GPS) program and sell their energy back to the Tennessee energy grid. For property owners who have a solar system that produces between 500 watts to 50 kilowatts, TVA will issue a credit for 100% of your energy at retail rate per kilowatt hour. If a qualifying renewable system produces more energy than the customer consumes, the excess credits will be paid out either monthly or annually, at the discretion of the power company.
TVA Renewable Energy Solutions
- Green Power Providers (GPP) – An innovative and sustainable program offered by TVA and local power companies to target residential and commercial customers who wish to install small-scale (50 kilowatts or less) renewable generation systems. GPP participants are paid for every kWh generated by their renewable energy system.
- Distributed Solar Solutions – A pilot program designed to encourage renewable energy projects that are directed by local power companies.
- Dispersed Power Production – Qualifying facilities that generate power up to 80 megawatts may connect to TVA power lines. Once connected, a qualifying facility can use its power for itself and sell any extra to TVA at TVA’s avoided costs, or it can sell all of its power to TVA at TVA’s avoided costs.
Clean Energy Tennessee Grants (CTEG) program from the TN Department of Environment & Conservation
The State of Tennessee in November 2016 announced a 6th round of grant funding for its Clean Tennessee Energy Grants.
The purpose of the Clean Tennessee Energy Grant Program is to select and fund projects that best result in a reduction of emissions and pollutants identified below. The program provides financial assistance to municipal government, county government, utility districts, and other entities created by statute (e.g. airport authority) in Tennessee to purchase, install, and construct energy projects that fit into one of the following eligible project categories:
- Cleaner Alternative Energy: biomass, geothermal, solar, wind
- Energy Conservation: Lighting, HVAC improvements, improved fuel efficiency, insulation, idling minimization
- Air Quality Improvement, including Sulfur Dioxide (SO2), Volatile Organic Compounds (VOCs), Oxides of Nitrogen (NOx), Hazardous Air Pollutants (HAPs), Greenhouse Gases
- February 28, 2017: Pre-Proposal submission deadline
- March 24, 2017: Full proposals (by invitation only) contacted for additional items
- April 21, 2017: Full proposal supplemental information submission deadline
- Fall of 2017: Announcement of Recipients
Ready to go solar? Get a free quote for your solar power array.