Navigating Federal Incentives with Solect’s Expertise

Investing in solar energy and storage becomes a smart financial choice with federal incentive programs. At Solect, we provide expert guidance, leveraging our comprehensive knowledge of existing and upcoming policies, programs, and regulations in the ever-changing policy landscape. We help your organization combine all eligible incentives and tax credits to maximize savings – so you can significantly reduce costs or create a new
revenue stream.

Framingham Brophy School; Framingham, MA; 369 kW, PPA
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Federal solar incentives: an overview

With expertise and policy involvement at the national level, Solect knows how to take full advantage of the solar incentives offered by the U.S. government. The landmark Inflation Reduction Act (IRA) of 2022 created significant federal support for solar and energy storage, including:

  • Increasing the solar Investment Tax Credit (ITC) to 30%: Translating to a $300,000 one-time tax credit for eligible costs based on a $1,000,000 solar or energy storage project.
  • Offering bonus tax incentives and generous “adders”: For example, for using US-made products or developing your project in a low-income, energy, or native community.
  • Expanding eligible technologies: Stand-alone energy storage systems are now eligible for the 30% ITC with the potential to go up to 70%.
  • Introducing Direct Pay: Receive a direct payment equivalent to the full value of tax credits for building qualifying clean energy projects
    (for nonprofits and public entities).

Modified Accelerated Cost Recovery System (MACRS)

Your project may also qualify for MACRS accelerated depreciation. Many of our clients have retrieved as much as 50% of their system costs.

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