Note: We updated this article on 11/29/22 to reflect current legislative changes. It has never been a better time to go solar!
According to the Solar Energy Industry Association (SEIA), Virginia ranks 18th in the country for total solar capacity. With the Virginia Clean Economy Act, we expect that number to increase as the state works towards its goal of 100% renewable electricity generation by 2050.
Distributed solar will play a major and increasing role in Virginia as these measures are implemented. Those net-metered connections that our customers have invested in for over a decade are, as always, an integral part of a more sustainable future.
Besides the chance to invest in a cleaner electrical grid and set an example for our future generations, there are a number of incentives available to our customers here in Virginia that choose to go solar! We want to outline those today.
The biggest and best incentive for all solar customers continues to be the Investment Tax Credit (ITC), currently offered as a 30% federal tax credit.
Thanks to recent legislative changes, the tax credit is extended until 2032, when it will begin sunsetting again.
On top of tax credits, Solar Renewable Energy Credits are also available to both residential and commercial customers. These credits are created simply by using your net-metered solar array and are one of the main reasons many of our recent customers have gone solar. Learn more on our post here.
The Solarize Blacksburg and Solarize Montgomery campaigns helped many members of our community install solar in 2014. As we moved into a statewide market in 2019, Baseline Solar has continued to look for opportunities for installing solar in entire communities, a group of neighbors, or offer a negotiated rate for a neighborhood or municipality. Those strategies allow us to procure materials in bulk and pass along those savings to new solar customers across Virginia.
Baseline has seen an uptick in commercial interest for distributed solar here in Virginia over the past couple of years. We have a long list of completed projects at Eastern Divide Brewery, Hearthstone Apartments, and Mountain Precision Tool here in Blacksburg.
Solar for commercial customers brings with it an amazing set of incentives, building upon the federal tax credit and giving businesses truly excellent reasons to go solar.
Commercial clients are also able to use the Renewable Electricity Production Tax Credit. More information is available here.
Businesses can also use The Modified Accelerated Cost Recovery System (MACRS) depreciation for their solar array. Just like other equipment whose value depreciates over time, this further incentivizes businesses to go solar.
Finally, many of our rural small businesses can apply for the USDA Rural Energy for America (REAP) program, offering grants of up to 25% of project costs on top of the current 30% federal tax credit and depreciation.
Not all members of our large service area meet the criteria for rural small business; however, if you do, it’s an excellent program offered by the USDA. If you go solar with Baseline Solar, we handle the grant process for you and facilitate the application with our local USDA office.
There has never been a better, more optimistic time for solar here in the Commonwealth. If we can answer questions about solar or help you understand exactly how an investment in solar could benefit you and/or your business, get in touch today!