There are endless financial incentives from states, utility companies, and the federal government. CES is here to help you take advantage of them all, making solar an affordable long-term investment for your business.

Federal Tax Credit

The current Federal Tax Credit is set at 30% for the next 10 years, until 2034. The FTC can have a significant impact on your solar system’s payback, but it has a limited time frame. The credit works by offsetting your federal taxes, but it’s not a grant where you would receive direct money from the federal government. You won’t be able to use the credit if you don’t owe any federal taxes. If you can’t use the full 30% in the year your system is operational, the remaining balance can be carried forward to future tax years. Businesses can also recoup the previous year’s taxes using the credit.

MACRS Depreciation & Bonus Depreciation

Businesses can benefit from 100% bonus depreciation since the Tax Cut and Jobs Act of 2108. This allows the full cost of a solar system to be depreciated in the year it is energized. The savings from this can be substantial. For instance, on a $100k system, the basis for depreciation would be the total cost minus half of the tax credit (87% or $87k) This amount can then be multiplied by the federal tax bracket, which is typically 24%, resulting in a savings of $20,880 in the year the solar system is put into service.


The Rural Energy for America Program (REAP) offered by the USDA provides grants to support energy efficiency improvements and renewable energy projects for agricultural producers and rural small businesses. These grants can cover up to 25% of the total installation cost of your solar system. However, this grant is highly competitive, and many applicants vie for a limited amount of funding. Nevertheless, it’s worth considering these grants as they can provide some extra financial help for your solar investment. Applying can be a complex process, including determining the appropriate round to apply in, verifying system eligibility, estimating the grant amount , and assembling necessary documents. Our team can handle all the paperwork, ensuring a hassle-free process for you and increasing your chances of success. There may be additional state incentives available depending on your system’s location.

US Treasury Direct Payment

The Inflation Reduction Act introduced and expanded tax credits for clean energy technologies, providing unprecedented policy certainty and opportunity for entitles that manufacture, install, and produce clean energy over the next decade. Tax-exempt and governmental entitles will, for the first time, be able to receive a payment equal to the full value or tax credits for building qualifying clean energy projects.

How do you qualify?
Tax-exempt organizations, States, and political subdivisions such as local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority, rural electric co-operatives, U.S. territories and their political subdivisions, and agencies and instrumentalities of state, local, tribe, and U.S territorial governments.
Water districts, school districts, economic development agencies, and public universities and hospitals that are agencies and instrumentalities of states or political subdivisions are also included.

For more info on qualifications: