RENEWABLE ENERGY: THE CLEAN FACTS

Wind and sun oriented are controlling a perfect energy transformation. This is what you need to think about renewables and how you can help have an effect at home.
Solar Energy
Solar Energy
Sun powered, or photovoltaic (PV), cells are produced using silicon or different materials that change daylight straightforwardly into power. Disseminated galaxies create power locally for homes and organizations, either through roof boards or local area projects that power whole areas. Sun based ranches can produce power for a large number of homes, utilizing mirrors to think daylight across sections of land of sunlight based cells. Drifting sun based homesteads or "floatovoltaics" can be a successful utilization of wastewater offices and waterways that aren't naturally touchy. Sunlight based supplies somewhat more than 1% of U.S. power age. However, almost 33% of all new creating limit came from sun powered in 2017, second just to petroleum gas. Sun oriented energy frameworks don't create air toxins or ozone depleting substances, and as long as they are dependably sited, most sunlight based boards have not many natural effects past the assembling interaction.
Wind Energy
Wind Energy
We've made considerable progress from older style wind plants. Today, turbines as tall as high rises with turbines almost as wide in measurement prepare for action all throughout the planet. Wind energy turns a turbine's sharp edges, which takes care of an electric generator and produces power. Wind, which represents somewhat more than 6% of U.S. age, has become the least expensive fuel source in numerous pieces of the country. Top breeze power states incorporate California, Texas, Oklahoma, Kansas, and Iowa, however turbines can be put anyplace with high wind rates like ridges and open fields or even seaward in untamed water.
Hydroelectric Power
Hydroelectric Power
Hydropower is the biggest sustainable power hotspot for power in the United States, however wind energy is before long expected to assume control over the lead. Hydropower depends on water commonly quick water in an enormous waterway or quickly diving water from a high point and converts the power of that water into power by turning a generator's turbine sharp edges. Broadly and globally, huge hydroelectric plants or super dams are frequently viewed as nonrenewable energy. Uber dams redirect and decrease common streams, confining access for creature and human populaces that depend on waterways. Little hydroelectric plants (an introduced limit underneath around 40 megawatts), painstakingly oversaw, don't will in general reason as much natural harm, as they redirect just a negligible portion of stream.
Biomass Energy
Biomass Energy
Biomass is natural material that comes from plants and creatures, and incorporates crops, squander wood, and trees. At the point when biomass is singed, the compound energy is delivered as warmth and can create power with a steam turbine. Biomass is frequently erroneously portrayed as a spotless, inexhaustible fuel and a greener choice to coal and other non-renewable energy sources for creating power. In any case, late science shows that numerous types of biomass particularly from backwoods produce higher fossil fuel byproducts than petroleum derivatives. There are additionally unfortunate results for biodiversity. All things considered, a few types of biomass energy could fill in as a low-carbon alternative under the right conditions. For instance, sawdust and chips from sawmills that would some way or another rapidly deteriorate and discharge carbon can be a low-carbon fuel source.
Geothermal Energy
Geothermal Energy
In the event that you've at any point loose in an underground aquifer, you've utilized geothermal energy. The world's center is probably just about as warm as the sun's surface, because of the sluggish rot of radioactive particles in rocks at the focal point of the planet. Penetrating profound wells carries hot underground water to the surface as an aqueous asset, which is then siphoned through a turbine to make power. Geothermal plants commonly have low emanations on the off chance that they siphon the steam and water they use once more into the supply. There are approaches to make geothermal plants where there are not underground supplies, but rather there are worries that they may build the danger of a seismic tremor in regions previously viewed as topographical problem areas.
Nuclear
Nuclear
Atomic force, the utilization of supported atomic parting to create warmth and power, contributes almost 20% of the power produced in America. The United States has utilized atomic force for over 60 years to create solid, low-carbon energy and to help public protection exercises. The Energy Department's Office of Nuclear Energy's essential mission is to progress atomic force as an asset fit for making significant commitments in gathering our country's energy supply, ecological, and energy security needs. By zeroing in on the improvement of cutting edge atomic advances, NE upholds the Administration's objectives of giving homegrown wellsprings of secure energy, lessening ozone depleting substances, and upgrading public safety. Atomic force stays a significant piece of our country's energy portfolio, as we endeavor to diminish fossil fuel byproducts and address the danger of worldwide environmental change.
Bioenergy
Bioenergy
Biomass is a natural environmentally friendly power source that incorporates materials like farming and timberland buildups, energy yields, and green growth. Researchers and architects at the Energy Department and National Laboratories are discovering new, more productive approaches to change over biomass into biofuels that can replace ordinary fills like gas, diesel, and fly fuel. Bioenergy can help guarantee a monetarily strong and secure future while decreasing natural effects through: 1.Developing moderate homegrown fills and co-items 2. Propelling clean fuel sources 3.Generating homegrown responsibilities to help the development of the U.S. bioeconomy. Innovative work to change inexhaustible carbon and waste assets into feedstocks for transformation to biofuels, bioproducts, and bio power will reasonably grow biomass asset potential in the United States.
Hydrogen and Fuel Cells
Hydrogen and Fuel Cells
The Hydrogen and Fuel Cell Technologies Office (HFTO) centers around exploration, advancement, and exhibit of hydrogen and power module advances across various areas empowering development, a solid homegrown economy, and a perfect, evenhanded energy future. Hydrogen is the least difficult and most bountiful component known to man. It is found inside water, petroleum derivatives, and all living matter, yet it seldom exists as a gas on Earth—it should be isolated from different components. There are different homegrown assets that can be utilized to deliver hydrogen, including renewables (wind, sun oriented, hydropower, biomass, and geothermal energy), atomic force, and petroleum products (like flammable gas and coal – with carbon catch and sequestration). The U.S. at present creates in excess of 10 million metric huge loads of hydrogen each year, around one-seventh of the worldwide inventory.

Bonus depreciation: what you need to know

Reading Time: 3 minutes As a business looking to go solar in the US, the best incentives available to you are tax incentives. Between the investment tax credit (ITC)–which works the same for businesses as it does for homeowners–and depreciation benefits at both the state and federal level, you can expect to receive half of what you pay for […]

Reading Time: 3 minutes As a business looking to go solar in the US, the best incentives available to you are tax incentives. Between the investment tax credit (ITC)–which works the same for businesses as it does for homeowners–and depreciation benefits at both the state and federal level, you can expect to receive half of what you pay for […]Reading Time: 3 minutes

As a business looking to go solar in the US, the best incentives available to you are tax incentives. Between the investment tax credit (ITC)–which works the same for businesses as it does for homeowners–and depreciation benefits at both the state and federal level, you can expect to receive half of what you pay for solar back as tax benefits. While the ITC has been around for a long time, and its success is well documented, bonus depreciation is a newer incentive that can provide nearly as large of a tax benefit as the ITC. 

Find out what solar panels cost in your area in 2021

Key takeaways


  • Bonus depreciation was introduced in the Tax Cuts and Jobs Act of 2017
  • The incentive allows you to depreciate 100 percent of the value of your solar investment (minus any other federal tax incentives you take) in year one
  • Bonus depreciation frequently provides a tax incentive of a similar magnitude as the ITC 
  • This incentive is scheduled to last through the end of 2022 – sign up to get solar quotes for your business from the EnergySage Marketplace to take advantage of this incentive today

What is depreciation and how does it work? 

First of all, to understand how bonus depreciation impacts the cost-benefit of solar, we’ll take a look at depreciation, focusing on what it is, and how it works. Before we do that, a quick disclaimer: we’re clean energy experts, not tax experts, and nothing in this article constitutes tax advice. With that out of the way, here’s what depreciation is and how it works, according to the IRS:

“Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.” 

So if you are a business, you can depreciate the value of certain business-related expenses, such as solar panels. Basically, the tax code allows you to take a tax benefit by recognizing that certain types of expenses and other physical assets will decrease in value over time. At the end of the day, depreciation reduces the earnings that you’re taxed on, meaning it works like a tax deduction, such as the impact of a charitable donation on your personal income taxes.

Bonus depreciation for solar

The notion of bonus depreciation isn’t new, but the way that it is applied to solar has changed in recent years. In fact, the Tax Cuts and Jobs Act of 2017 made two major updates to how bonus depreciation is applied as a solar incentive. First, it increased bonus depreciation to 100 percent in year one. Second, it defined the timeline that this benefit will be applied to solar assets: for any projects placed in service from September 27, 2017, through the end of 2022. 

Importantly, for solar assets in particular, the value that you can depreciate is reduced by 50 percent of any other federal tax credits from the project. So for a project that you will take the value of the ITC for, you have to reduce the value you depreciate by 13 percent (i.e., half of the 26 percent ITC). 

How to calculate the benefit provided by bonus depreciation for solar

To calculate the tax benefit of bonus depreciation for a solar project, there are three variables you need to know: the cost of your solar project (in dollars), the value of the federal ITC (percent), and your company’s tax rate (also a percentage). 

If you are taking advantage of the federal ITC (which you should!), then the regulation says you have to subtract half the value of the ITC from the value that you depreciate: when the ITC is at 26 percent like it is today, cut the ITC percentage in half–so 13 percent–and subtract that from the cost of your solar panel system. In other words, you get to depreciate 87 percent of the cost of your solar panel system. From there, the tax benefit you receive is based on your corporate tax rate, i.e., 30 percent or 37 percent. 

So if your solar panel system costs $100,000, the ITC is at 26 percent, and your corporate tax rate is 37 percent, then the depreciation benefit will be $32,190 in the first year: $100,000 (the cost of the system) * 87 percent (the value you can depreciate if you take the ITC) * 37 percent (assumed corporate tax rate). 

Again, this is a big tax benefit the year after you install solar. In the example above, bonus depreciation effectively amounts to a 32 percent tax credit, meaning that bonus depreciation basically doubles the ITC benefit

Take advantage of bonus depreciation with EnergySage

EnergySage doesn’t just help homeowners go solar; we also help get quotes for businesses and nonprofits. And with tax benefits like the ITC and bonus depreciation, solar is a no-brainer for many business owners due to its rapid payback period and high return on investment. To get started with solar quotes for your business, sign up for a free account today on the EnergySage Marketplace, and we’ll help you navigate your solar options. 

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