Commercial Tax credits
Businesses save the most!  As a business 86% of the cost of a solar system is offset by tax credits and incentives, and a return on your investment in as quick as 3.5 years. Up to 58% of the system's total cost can be claimed in tax credits and accelerated depreciation within the first year.
 
Financial Incentives for Hawaii Businesses to go Solar Electric:
- 30% Federal Business Energy Tax Credit
- 35% State of Hawaii Energy Conservation Tax Credit
- Federal and State Accelerated Depreciation
- Energy Savings

Please note that the tax incentive calculations are based on our understanding of the new energy conservation credits described in the SEIA Guide to Federal Tax Incentives for Solar Energy. Please click on the link below to download the manual or consult your tax professional.  You can also e mail your tax questions to our Chief Financial Officer Salma Ansari for more info: (download manual)
Call Rising Sun Solar for a free site survey and quote at 808.579.8287

Here's How the Tax Credits Work:
State of Hawaii Energy Conservation Tax Credit: This corporate income tax credit allows a credit of 35 percent of the cost of equipment and installation of an active solar electric system. The credit is to be applied in the year in which the system is placed in service. This credit is available for systems installed for commercial or industrial use, and there is a $500,000 maximum per year per system to the total amount of the credit. Tax credits that exceed the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. (Department of Taxation Form N-334) For more information, go to www.state.hi.us/tax/current/n334.pdf.

Federal Business Energy Tax Credit: The business energy tax credit is a 30 percent tax credit available to commercial businesses that invest in or purchase energy property in the U.S. Energy property includes solar and geothermal energy. The energy property must be operational in the year in which the credit is first taken. The property must also be constructed by the taxpayer and used by the taxpayer. Credit may not be taken if financing for the project is subsidized or from tax-exempt bonds. The tax credit is unlimited. Remaining credit may be carried back 1 year and then carried forward for 15 years.
(IRS Form 3468 http://www.irs.gov/pub/irs-pdf/f3468.pdf )

Federal Business Energy Tax Credit: The business energy tax credit is a 30 percent tax credit available to businesses that invest in or purchase energy property in the U.S. Energy property includes solar and geothermal energy. The energy property must be operational in the
year in which the credit is first taken. The property must also be constructed by the taxpayer and used by the taxpayer. Credit may not be taken if financing for the project is subsidized or from tax-exempt bonds. The tax credit is unlimited. Remaining credit may be carried back 1 year and then carried forward for 15 years.
(IRS Form 3468) For more information, go to www.irs.gov/pub/irs-pdf/f3468.pdf.

Federal and State Accelerated Depreciation: An additional incentive for businesses to go solar electric is the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, businesses can recover investments in solar electric equipment through depreciation deductions. For solar electric equipment, the current MACRS property class is five years.
(For more information, read IRS Publication 946 at www.irs.gov/pub/irs-pdf/p946.pdf  or
Form 4562 at www.irs.gov/pub/irs-pdf/f4562.pdf.)

Save Money, Save Energy
Energy Savings: A Rising Sun Solar Electric system provides a monthly savings on your electric bill by replacing some or all of your purchased utility kilowatt-hours (kw) with solar-generated electricity. These savings will depend on the size of the installed system, business location and the price of electricity, and will be realized every month over the life of the equipment; estimated to run
for over 30 years. The savings potential will be even greater should the cost of utility electricity rise over time.

Net Metering
Spin your electric meter in reverse!! A solar electric system changes the dynamics of your relationship with the utility. As a clean energy producer you can "Net Meter" your electricity. In simple terms, if the solar system produces more energy than you are using at that moment in time, your meter will spin backwards crediting your account at the full retail rate. When your energy needs exceed your system's output your meter spins forward. Your electric meter measures the "net" difference and the utility company bills you for this amount.

In June 2001 Hawaii became the 35th State to adopt a Net Energy Metering Law  (NEM) allowing renewable energy grid connected systems up to 50 kilowatts. A larger system can be installed, however, the customer will not be credited for energy that isn't used on site. Systems larger than 50kw require what's called a "demand profile analysis," which can be provided by Rising Sun, to determine the best size for the customer.

Note: There is no charge from the utility company to become a net-metered customer.