Eligible for Solar Tax Credit
Solar is a great way for a condominium management association to manage its electricity costs. Condo associations aren’t eligible for the 30% federal energy credit for solar, but even without the credit, solar is a very attractive proposition. Here’s what the economics look like for a typical condo association solar installation over the 25-year life of the system.
Solar Economics
$350,000 System
| Association required cash | 0 |
| Total electricity cost savings | $1,750,000 |
| Solar financing cost | ($500,000) |
| Total Benefit | $1,250,000 |
The association puts up no cash and saves over $1.2 million in electricity costs, net of the financing cost. Not a bad deal. But it gets better.
Condominium associations aren’t eligible for the energy credit, but their members who live there are!
Resident association members are entitled to their share of the energy credit on a solar system installed on association property. This means that they get a federal tax credit equal to 30% of the system price in the year the system is installed – that’s a $105,000 windfall on a $350,000 system. The credit is a huge bonus, which makes it a whole lot easier for the association leadership to present solar to the members.
“Solar controls our energy costs, but it won’t have any impact on dues and members share in a $105,000 tax credit. And by the way, it generates $1,250,000 in cash for the association in the long-term.”
Solar for your condominium association is a great idea that just got even better! For more information about financing your condominium association’s new solar project contact us at 530-345-0400