Commercial Solar Installers in St. Louis, MO – Solar City STL
Welcome to Solar City STL, St. Louis’ leading name in commercial solar installations.
We are a full-service solar energy provider with a mission to offer our clients in St. Louis and the surrounding areas a sustainable, cost-effective energy solution that not only benefits their budget but also our shared environment. We are committed to helping businesses, large and small, transition to renewable energy and contribute to a greener, more sustainable St. Louis.
Why Choose Solar City STL?
With years of experience, our team of highly skilled professionals takes pride in delivering top-quality solar installations tailored to your unique business needs. We handle everything from initial site assessment, custom system design, permitting, installation, to ongoing maintenance and support.
Our solar installations are not just about saving money on energy costs; they are about investing in the future of your business and the planet. By switching to solar energy, you can significantly reduce your carbon footprint, showcase your commitment to sustainability, and even attract customers who value environmentally responsible businesses.
Customized Solar Solutions
At Solar City STL, we understand that every business is unique, which is why we don’t offer one-size-fits-all solutions. Whether your commercial property is a large warehouse, a small office building, or a retail store, we design and install a solar system that perfectly fits your needs and energy consumption patterns. Our goal is to maximize your return on investment while minimizing your carbon footprint.
Financial Benefits
Switching to solar energy is a smart financial decision. With Solar City STL, you can enjoy significant savings on your energy bills, protection against rising energy costs, and a favorable return on your investment. Missouri’s generous solar incentives and federal tax credits can make your transition to solar even more affordable. We’ll guide you through the process, ensuring you take full advantage of the available benefits.
Modified Accelerated Cost Recovery System (MARCS) depreciation
Many businesses utilize the Modified Accelerated Cost Recovery System (MARCS) depreciation method to estimate the depreciation of assets. In the case of solar energy systems, a 5-year cost recovery period is typically applied. Bonus depreciation allows investors to recognize the entire depreciation amount in the same tax year that the system is put into service.
Currently, in 2022, the depreciation basis for qualifying solar equipment stands at 87%. This means that 13% of the overall project costs are deducted to account for half of the Investment Tax Credit (ITC). This depreciation percentage allows businesses to claim 100% bonus depreciation for qualifying solar equipment placed in service before January 1, 2023.
Starting from January 1, 2023, the bonus depreciation percentage will decrease to 80% for year 1. The subsequent years will follow a schedule where the amount depreciated reduces as follows: 60% in 2024, 40% in 2026, and 20% in 2027.
The introduction of bonus depreciation was a response to the economic downturn of 2008. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 permitted companies to claim 100% bonus depreciation on qualifying capital equipment, provided it was placed in service by December 21, 2011. The percentage was then reduced to 50%. In 2017, The Tax Cuts and Jobs Act of 2017 increased the bonus depreciation percentage back to 100% for qualified property placed in service before January 1, 2023.
For businesses considering the adoption of solar energy, it is crucial to act swiftly in order to take advantage of the 100% bonus depreciation opportunity. The MARCS depreciation schedule outlines the percentage of depreciation for each year after the completion of the solar energy system, with 20% in year 1, 32% in year 2, 19.2% in year 3, 11.50% in year 4 and 5, and 5.80% in year 6.
Rural Energy for America Program Renewable Energy
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
What is an eligible area?
- Businesses must be in located in rural areas with populations of 50,000 residents or less.
- Check eligible business addresses.
- Agricultural producers may be in rural or non-rural areas
Federal Solar power Incentives
The Residential Clean Energy Credit, previously known as the Investment Tax Credit (ITC), has been extended to 2034 and now offers 30% in tax credits to consumers who purchase solar panels. The increased credit can be retroactively applied to solar systems purchased at the beginning of 2022.
The Solar Tax Credit was formally set to expire in 2024 but will now remain at 30% through 2032. It will drop to 26% in 2033 and 22% in 2034. It is set to expire in 2035 unless it is renewed again.
What is Direct Pay?
Direct Pay, as introduced by the Inflation Reduction Act, allows tax-exempt and governmental entities to receive a payment equal to the full value of tax credits for qualifying clean energy projects. Unlike traditional grant and loan programs, Direct Pay ensures that eligible entities receive their payment if they meet the requirements for both Direct Pay and the underlying tax credit. This provision provides unparalleled policy certainty, enabling entities to undertake ambitious clean energy initiatives.
Eligibility and Benefits:
- State, Local, and Territorial Governments:
– Eligible entities include states, U.S. territories, political subdivisions, agencies, and instrumentalities of state or local governments.
– Direct Pay enables local governments to invest in clean energy, accelerating the adoption of sustainable practices.
– Funding opportunities are available for projects such as solar, wind, battery storage, community solar, EV charging infrastructure, and purchasing clean vehicles for state fleets. - Tribal and Native Entities:
– Federally recognized Tribal governments, their subdivisions, and agencies, as well as Alaska Native Corporations, are eligible for Direct Pay.
– Direct Pay empowers Tribes to bring clean energy to their communities and enhance energy sovereignty and independence.
– Qualifying projects include solar arrays, which can receive the Investment Tax Credit and additional credits through the Low-Income Communities Bonus Credit program. - Rural Energy Cooperatives:
– Direct Pay is available to any corporation operating on a cooperative basis that provides electricity to rural communities.
– Rural electric co-ops can leverage Direct Pay to invest in clean energy projects, create jobs, and continue delivering affordable, reliable electricity.
– Geothermal wells, for example, can benefit from the Production Tax Credit and Energy Communities Bonus Tax Credit. - Other Tax-Exempt Entities:
– Eligible entities include 501(c)(3) organizations, religious or apostolic organizations, and all other organizations exempt under section 501(a) of the tax code. organizations such as public charities, private foundations, schools, hospitals, houses of worship, and others
– Direct Pay helps nonprofits install clean energy systems, reduce energy costs, and allocate more resources towards their mission.
– Nonprofits can also generate clean electricity for their communities through technologies like community solar.
Application Process:
To take advantage of Direct Pay, entities need to follow a simple application process:
- Identify the project and the applicable tax credit.
- Complete the project and determine the corresponding tax year.
- Determine the tax return due date and complete pre-filing registration with the IRS.
- File your tax return, including the registration number and necessary documentation.
- Receive your direct payment once your return has been processed.
Federal Solar Tax Credits for Businesses
Are you a business owner, nonprofit organization, or local government entity planning to install a solar energy system? You may be eligible for federal investment and production tax credits. These credits can significantly reduce your federal income tax liability and make solar energy more financially viable for your organization.
- Investment Tax Credit (ITC)
- The ITC is a tax credit that allows you to offset a portion of the cost of installing a solar system in the tax year. By taking advantage of the ITC, you can reduce your federal income tax liability by a percentage of the system’s cost.
- Production Tax Credit (PTC)
- The PTC is a per kilowatt-hour tax credit for electricity generated by solar and other qualifying technologies. It applies to the first 10 years of a system’s operation. Like the ITC, the PTC can help reduce your federal income tax liability, and it is adjusted annually for inflation.
- Choosing the Right Tax Credit for You
- Deciding between the ITC and the PTC depends on several factors, such as the cost of your project, the amount of sunlight available, and whether you qualify for any bonus tax credits. Our experts can help you determine which tax credit is the best fit for your specific needs and circumstances.
- Eligibility and Expenses
- To qualify for the ITC or PTC, your solar system must meet certain criteria. It must be located in the United States or U.S. territories, use new or limited previously used equipment, and not be leased to a tax-exempt entity. There are also specific labor requirements that must be met to qualify for the full tax credits.
- When calculating the ITC, it’s important to understand the eligible expenses. These include the cost of solar panels, inverters, racking, installation costs, certain indirect costs, energy storage devices, and more.
- Additional Incentives
- In addition to the ITC and PTC, there are bonus credits available that can enhance the value of your tax credits. These include the domestic content bonus, energy community bonus, and low-income bonus. Our website provides detailed information on each of these incentives and how they can benefit your solar project.
- Claiming the Tax Credits
- To claim the ITC or PTC, you need to complete the necessary IRS forms and attach them to your tax return. Our website provides links to these forms and offers guidance on how to complete them correctly to ensure you receive the full benefits of the tax credits.
- Unused Tax Credits and Financing
- If you have unused tax credits, they can be carried back or forward to offset future tax liabilities. We also provide information on financing options, such as tax equity financing, that can help you maximize the benefits of the tax credits.
At Solar City STL, we are committed to helping businesses and organizations in the St. Louis area take advantage of federal solar tax credits. Explore our website to learn more about these tax credits and how they can make solar energy a smart financial choice for your organization.
Trusted & Experienced
Choosing Solar City STL means choosing a partner you can trust. With a proven track record in St. Louis, we have helped countless businesses make the shift to renewable energy. Our dedication to quality service, client satisfaction, and a greener future has earned us a reputation as the go-to commercial solar installer in the region.
Commercial Solar Warranty
Silfab Solar, Solaria, and Enphase are three of the leading companies in the solar equipment market, all known for their commitment to quality, high-performance products, and long-standing warranties. Silfab Solar, a North American manufacturer, provides a 30-year product and performance warranty for their premium solar modules. This warranty assures that their solar panels will function at a certain level of their rated power output for a period of 25 years. Similarly, Solaria, based in California, offers a 25-year product warranty and a 30-year performance warranty. The 30-year performance warranty guarantees that the panels will produce a certain percentage of their rated power after 30 years of operation.
Enphase, a global energy technology company, offers a 25-year warranty on their microinverters, which is significantly longer than the industry standard. Their warranty covers both product and performance, ensuring that their microinverters will work and perform to a specific standard for a quarter of a century. This extended warranty period is a testament to the company’s confidence in the durability and longevity of their products.
Notably, SolarCity STL offers a unique proposition with a 25-year labor and production warranty. This warranty is comprehensive, covering not only the solar panels but also the workmanship that goes into installing them. It also guarantees a certain level of electricity production for 25 years. This means that if the solar energy system does not produce the promised amount of electricity, SolarCity STL will compensate the homeowner for the difference. This type of warranty offers peace of mind to homeowners, ensuring that they receive the expected return on their investment in solar energy.
Get Started Today
Ready to take the first step towards a more sustainable, cost-effective energy solution for your business? Contact Solar City STL today for a free consultation. Let us help you harness the power of the sun and transform the way your business uses energy.
Solar City STL – Powering St. Louis, one business at a time.
