The ITC is a 26 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms.
Solar projects that qualify for the ITC also are eligible for accelerated depreciation. This deduction allows 85% of the tax basis for the project to be depreciated over a five-year period.
Solarize is a program that allows a particular community to employ the savings of bulk purchasing and the reduction of “soft costs,” such as marketing and administrative overhead, to allow individuals to install solar at reduced cost. The program also helps eliminate guesswork for the homeowner by prescreening contractors to perform the installation.
Community solar offers the benefits of solar energy to homeowners whose sites are unsuited for solar installation and renters.
Working together, community leaders can partner with a power provider to create a large scale solar project in a well-suited central location nearby.