Commercial Air Conditioning Government & Utility Company Incentive Programs

To support energy efficiency, encourage the use of renewable sources, and create new job opportunities, many states, cities, and utility companies are now offering tax credits, rebates, and other incentives.  The end goal of this initiative is to encourage more businesses to “go green”, and fuel additional growth in an emerging energy market that is still in its infancy.

What Kind of Incentive Programs Are Available?

There are hundreds of incentives that US citizens or business can take advantage of. These incentive programs can be classified into three categories:

  • Federal Tax Credits – The federal government offers several incentives for solar power, the most notable of which is the Solar Investment Tax Credit. Under this program, you can get 30% of your total solar air conditioner installation expenditure deducted from your annual income tax payment. Should your tax payment be less than your tax credit, the credit will roll over into the next year. The Solar Investment Tax Credit program is currently in effect until December 31, 2016.
  • State and Local Rebates – Different tax credit and rebate programs are available in all 50 states. Procedures and requirements for these programs, as well as total subsidies, vary from state to state. For example, the State of California’s rebates, which are administered through the California Solar Initiative, start at roughly $2 per watt. Many of California’s utility companies also offer rebates, ranging from $0.20 to $3.80 per watt. In New York State, you can get a rebate of $1.50 per watt if you purchase your system from an investor-owned utility company. In the most generous states, tax credits and rebates can cover as much as 40% of the cost of your commercial air conditioning system.
  • Renewable Energy Credits – Solar Renewable Energy Credits (SREC) are tradable commodities designed to promote the use of solar power. SRECs are generally awarded to facilities using solar equipment at a rate of 1 SREC per 1000 kWh of electricity produced.  The market value of SRECs varies by state, and can be anywhere from $50-$700.  The additional income received from selling SRECs increases the economic value of a solar investment and assists with the financing of solar technology. It is worth noting, however, that you need to have your solar system registered and certified to qualify for and redeem these credits.

Which Incentive Programs Can You Benefit From?

If you are interested in purchasing a solar air conditioning system for your company to take advantage of the incentives listed here, as well as help the development of more advanced solar technology, please contact one of our representatives today. The team here at Energy Efficiency Pros will provide you with all the information you need regarding the different incentives that may be available for your company. Since incentives vary widely from city to city and state to state, it’s best to speak with a pro to determine what incentives you qualify for and which plan will best suit your needs.