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Because of the tax effect of depreciation, most commercial systems generate profit from the first day of installation if financed through a loan . Under the Modified Accelerated Cost Recovery System (MACRS), businesses can recover investments in solar through depreciation deductions.
The following table shows a breakdown of system value, costs and incentives for a 10 kW system.(the most popular system size selected by commercial customers).
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The system value is $80,000.
Incentives from New York State are $40,000 and the 10 % Federal Investment Tax Credit is $4,000.
The Net Cost of $36,000 can be financed through a loan and the loan interest rate is reduced by 4% through the New York Energy $martSM program. |
As with residential Customers, we do a specific Cash-Flow Calculation with our proprietary program to ensure that you know exactly what savings you can expect after installing a Prudent Power System.
However, due to the large impact of deductible depreciation of the solar investment and the tax effect of the electricity cost itself on the Cash-Flow of commercial systems, detailed calculations can be done only after incorporation of the specific depreciation data and after consideration of the tax effects of the utility bill for your specific company.
Commercial customers can expect substantial savings over the expected minimum lifetime of 30 years of the system.
Please contact us and we would be happy to give you a detailed proposal based on your specific situation.
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