ROOFING PROJECT FINANCING: NAVIGATING YOUR BUDGET
National Roofing & Solar Corporation can help you navigate your commercial roofing project budgeting and financing strategies. If you’re looking to save money on a commercial project, it’s important to consider the solar tax credit. Combined with other local and state incentives, you can quickly see a return-on-investment. If you’re thinking of pulling the trigger on solar, contact NRSC today and we’ll put together a comprehensive commercial roofing assessment.
The cost of solar panels has fallen by approximately 80% since 2011. Businesses may also be able to access solar financing to pay for the cost of the panels and the installation. The potential savings that you might realize on your commercial building’s electricity bill should also factor into your analysis of the cost. Some buildings may realize savings of as much as 75% on their electricity bills after they install a solar project.
Businesses that install commercial solar panels are eligible to claim the federal Investment Tax Credit (ITC). In 2019, this credit reduced the taxes that businesses paid dollar-for-dollar up to 30% of the amount invested. This credit has a planned phase out in the coming years. In 2020, companies that install the systems will be able to claim 26%. Businesses that wait until 2021 can claim only 22% of the cost. Finally, companies that wait until 2022 and beyond can only claim 10% of the cost of new systems. Additionally, there is a federal MACRS depreciation tax benefit, which allows commercial solar customers to take the full depreciation benefit on their solar project in year one.
Many states also offer their own tax breaks such as property tax exemptions to businesses that install solar systems. The availability of these credits varies from state to state. Fortunately, our experts at National Roofing & Solar Corporation are thoroughly educated in the various state tax credits, rebates, and incentives throughout the nation. Contact NRSC today for help identifying which possible tax incentives could help your commercial roofing project.
What is C-PACE?
Commercial Property Assessed Clean Energy (C-PACE) is a state policy-enabled financing mechanism that allows building owners and developers to access the capital they need to make energy related deferred maintenance upgrades in their existing buildings, cover up to 20% of the cost of new construction, and make renewable energy accessible and cost-effective.
How does C-PACE Work?
C-PACE makes it possible for commercial property owners to obtain low-cost, long-term financing for energy efficiency, water conservation, and renewable energy projects. Most commercial property types qualify for C-PACE financing. The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit — like a new sewer, water line or road.
These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically ~20–30 years). The assessment transfers on the sale of the property and can be passed through to tenants where appropriate.
While facilitating sustainability efforts, the program reduces property owners’ annual costs and provides dramatically better-than-market financing for green new construction.
Where is C-PACE Available?
When it comes to financing your custom-designed solar power system, National Roofing & Solar Corporation can help you take advantage of various programs that make solar power affordable for homeowners and commercial property owners.
Start Saving Immediately
You can choose to purchase your solar power system outright. Owning your solar power system permits you to receive the benefit of applicable tax credits and incentives available. After your system is installed, you would essentially pay nothing for the electricity it generates and will immediately begin to recoup your investment. The team at NRSC is happy to review the benefits of this option with you in detail.
Go Solar With Little Or No Up-Front Cost
NRSC works with many different financing companies to offer loans for solar power systems. These financial firms offer loans for your solar power system for different terms at competitive rates, including no-money down options for commercial, not-for-profit, and residential applications. Financing still allows you to benefit from applicable tax credits and incentives, and the savings on your electricity bills may offset your financing payments. NRSC will design and install your solar power system, and also help you understand and choose the best financing solution to fit your goals.
Lease & Limit Your Up-Front Costs
You may opt to lease the solar power equipment. For some, this is the best financing solution. NRSC can advise you on lease and Power Purchase Agreement (PPA) options. Leases and PPAs limit upfront costs by changing the structure of ownership. In these scenarios, the tax credits and other incentives will go to the lessor or third-party owner to help pay down the project cost, making the system more affordable for you. The team at NRSC will be happy to provide more insight into the lease or PPA options.
To get started on your roofing project, get in touch today.
Contact us today and our team will get back to you with everything you need to get your next roofing or solar project moving forward.