Financing
Achieve has access to a variety of financing options for our renewable energy solutions.
Programs and rates vary substantially based on which product(s) are being financed, the size
of the project and the location. We encourage you to discuss financing alternatives with us.
Incentives
There are very strong incentives for the installation of solar power. The incentives
can be different for residences and vary from state to state. Achieve tracks these
programs and will help you understand how rebates can make your solar installation
more economical.
State or Utility Rebates
Many states offer rebate programs for the installation of PV systems. The amount of
the rebates vary but can be up to about half the cost of installation.
Federal Investment Tax Credit
The Internal Revenue Code provides an investment tax credit (ITC) for certain
types of energy projects, including “equipment which uses solar energy to
generate electricity.” Historically, through 2005, the size of the solar credit
was equal to 10% of the project’s “tax credit basis” – i.e.,
the portion of system costs to which the ITC applies. The Energy Policy Act
of 2005 temporarily increased the solar credit to 30% of a project’s tax credit
basis, for projects placed in service between January 1, 2006 and January 1, 2008.
In late-December 2006, the Tax Relief and Healthcare Act of 2006 extended the in-service
deadline to December 31, 2008, and in October 2008, the Energy Improvement and Extension
Act of 2008 extended it once again for a full eight years, through December 31,
2016.
Accelerated Tax Depreciation
The IRS provides a Modified Accelerated Cost Recovery System through which certain
investments in solar power projects can be recovered through accelerated income
tax deductions for depreciation. Under this provision, which has no expiration date,
"equipment which uses solar energy to generate electricity" qualifies
for 5-year, 200 percent (i.e., double) declining-balance depreciation. Accelerated
depreciation applies to business tax returns.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) are a financing tool intended to "level
the playing field" for non-taxable entities specifically, governmental entities
and electric cooperatives, and recently extended to public power providers) that
cannot directly utilize federal tax credits (or accelerated tax depreciation benefits).
CREBs are “tax
credit bonds,” which means that the bond purchaser receives a federal income
tax credit in lieu of interest payments. From the borrower’s perspective,
CREBs are therefore essentially the equivalent of a zero-interest loan.
Impact on the Environment
After production, PV systems have virtually no negative impact on the environment,
making them one of the cleanest power-generating technologies available. PV
systems produce no air pollution, hazardous waste, or noise, and they require no
transportable fuels. Because of these benefits, PV can play an important role
in mitigating environmental problems such as air pollution, fossil fuel usage and
global warming.