Today more businesses are embracing renewable energy and seeking to reduce their carbon footprint by installing solar arrays and electric vehicle chargers. This trend has led to more grant programs, incentives, and tax credits to encourage the adoption of green technology. It has also led to the bold claims that we hear every day about free and no-cost solar installation, generous checks from utility companies, and even eliminating your power bill forever.
How can you tell which claims are real and which are just advertising hype? And how can you get the real savings these programs offer?
Recently Todd Wood, our Sustainable Energy Division Manager, hosted an educational event at the Hunt corporate offices to explain available incentive programs and help participants understand how to make the most of them. Todd’s 15 years of experience working with utility companies gives him a detailed understanding of these programs and how you can use them to create renewable energy solutions for your business, including solar, battery, and electrical charging solutions. If you missed it, here’s a summary.
Incentives for Powering Your Business with Solar Energy
Federal Tax Credits
If you’re interested in installing a solar energy system, you may be eligible for several different tax credits. The first is a federal investment tax credit (ITC) that reduces federal income tax by up to 30% of solar power installation costs. This credit is for commercial solar projects with over 1,000 kilowatts of production that are installed by a contractor who meets certain labor requirements.
Additional credits are also available if the project meets certain requirements.
- 10% Credit for American-Made Components Bonus
- 10% Low-income Bonus
- 10% Energy Community Bonus
- 20% Low-income Residential Bonus
State Commercial Tax Credit
These tax credits are available in Utah for installing solar arrays on commercial buildings. Tax credits for as much as 10% of the eligible system cost or $50,000, whichever is less, are available until the end of 2023.
Depreciation
The depreciation of solar equipment is considered a business expense that reduces your tax liability. A solar investment’s depreciation expense can be written off every year for five years on both federal and state taxes.
Because these solar incentives are awarded in the form of tax credits, consult with your tax professional to see if they apply to your business.
Incentives for EV Chargers
Electric Vehicle (EV) incentives are available for installing Electric Vehicle Supply Equipment (EVSE) from federal and state governments and utilities.
Workplace Electric Vehicle Charging Funding Assistance Program
The Utah Department of Environmental Quality (Division of Air Quality) offers business, non-profit, and government organizations reimbursements up to 50% of the purchase and installation costs of eligible light-duty EVSEs up to $75,000.
Rocky Mountain Power EV Incentives
Rocky Mountain Power offers several cash rebates for installing approved electric vehicle charging stations.
- AC Level 2 Chargers (Up to 75%)
- Single Port $1,000 per charger
- Dual Port $1,500 per charger
- DC Level 2 >100kW Chargers (Up to 75%)
- Single Port $30,000 per charger
- Dual Port $42,000 per charger
Rocky Mountain Power Make Ready Grant
This grant helps finance electrical infrastructure between the utility grid interconnection and the vehicle chargers. The investments can cover infrastructure (switch gear, panels, or transformers) on both the utility side and the customer side of the meter for approved chargers.
Federal Investment Tax Credit (Inflation Reduction Act)
This program reduces the costs of installing Electric Vehicle chargers by providing an investment tax credit for 30 percent of the project cost up to $100,000. Projects must meet certain requirements.
- Subject to prevailing wage and apprenticeship requirements
- Tax credits require that installations are in certain census tracts as of 1/1/23:
- Population census tracts where the poverty rate is at least 20% or
- Census tract where median family income is less than 80% of state median family income
National Electric Vehicle Infrastructure (NEVI) Grant
NEVI provides funding to businesses that strategically deploy electric vehicle (EV) charging stations. Funding is available for up to 80% of eligible project costs, and it covers the following:
- The acquisition, installation, and network connection of EV charging stations
- Proper operation and maintenance of EV charging stations
- Long-term EV charging station data sharing
EV charging stations must be non-proprietary, allow for open-access payment methods, be publicly available to authorized commercial motor vehicle operators from more than one company, and be located within one travel mile of a designated EV corridor.
Look for Experience
When choosing a contractor to install your solar array or electric vehicle charging stations, the obvious choice is a partner with wide experience in installing both types of projects. Look for someone with expertise working with government entities and utilities to maximize the number of incentives you can earn.
The quality of the estimate a contractor gives you is a good predictor of the quality of service they will provide. When requesting an estimate, look for the following.
Transparency – A trusted partner makes sure you understand all of the costs involved in the installation by providing a complete breakdown of labor, material, and engineering costs so that you know what you’re paying for.
Accuracy – Calculating the project’s estimated savings based on future utility rate increases is a critical part of the decision process. Make sure predicted utility rates and all other projections are realistic.
Site Knowledge – An estimate of the cost and savings for your solar project will be more accurate when it is based on site specifics such as location, tree shading, and solar patterns. This will create an estimate you can count on.
How the Hunt Electric Sustainability Team Can Help
Today clients expect more from contractors than simply installing solar arrays and EV chargers. They want a partner who understands the incentives available and can help you qualify for all incentives relevant and applicable to your system and business. Our Sustainability team not only has decades of combined experience designing and installing solar arrays and EV chargers, but we also have a detailed knowledge of the incentives available that we pass on to our clients. And don’t forget – as an established contractor with 37+ years in business, you can count on us to be here to assist you with maintenance for years to come.
We welcome the opportunity to help you make sense of the incentives available for adding solar power systems and EV chargers to your business.
Learn More About Credits and Incentives for Solar and EV Charging
Federal Investment Tax Credit
State of Utah Commercial Tax Credit
Workplace Electric Vehicle Charging Funding Assistance Program
Rocky Mountain Power EV Incentives and Make Ready Grant
National Electric Vehicle Infrastructure (NEVI) Grant