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Economics of Solar

Real Goods Solar provides a comprehensive set of financial options with our proposal, based upon a thorough understanding of your objectives and the engineering data gathered at the site visit. We provide a custom analysis of your return on investment, and detailed information about incentives you qualify for--such as upfront or performance based cash rebate, a 30% Federal tax credit, and an accelerated depreciation schedule. Since non-profit organizations cannot take advantage of the 30% tax credit, we will show you how you can still benefit from state and federal incentives.

Government Rebates & Incentives

A Smart Investment

Solar electricity can save you thousands of dollars. Hundreds of thousands of dollars. When viewed as a long term investment, it’s low risk with high returns—much better than conventional high risk investments. And with government incentives covering 75% of the installation cost, your payback time is considerably short.

Commercial solar electric systems deliver power when it is needed most during high demand times of the day, offsetting the expensive peak power charges businesses pay to utilities. These incentives include:

  • State Incentives
  • Federal Investment Tax Credit
  • Accelerated 5-year Depreciation
  • Property Tax Exemption
In addition to their substantial economic benefits, solar power also delivers the benefits of “going green.” Whether to burnish their public image, as a hedge against future rate hikes, or to meet carbon neutral goals, businesses are increasingly purchasing solar electric systems that enhance customer loyalty and attract socially responsible employees.

Power Purchase Agreement

One of the most common forms of financing is the Power Purchase Agreement (PPA). Power Purchase Agreements are structured by a third party financial institution where they own and maintain the system for 10-25 years. They assume the federal and state incentives. Your business is basically renting the roof space, and buys power for a long term fixed rate lower than your current utility provides. It’s a win-win for business with no capital outlay, and the PPA investors can take advantage of the 30% Federal Tax Credit. Real Goods Solar has strong relationships with reputable industry PPA providers, and we’ll work with you to negotiate the most competitive financing rates.

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