Solar on commercial buildings and investment properties

      If you are a commercial property owner, putting solar on the building may be a better idea than you thought. The tax credit is still the same for commercial as residential but will have an indefinite 10% tax credit once the residential credit is gone at the end of 2021. An incentive not commonly known is that a commercial owner can claim 100% depreciation on the solar equipment at year 1. This was changed in our tax code just a couple of years ago. This allows the commercial owners to essentially write off another 30% of the gross cost. Talk to a tax professional for more information.

Between the 26% tax credit and the depreciation, larger commercial systems can see payback periods of around 3 years!

      For investment rental properties, owners can put solar on the house and then take the electric bill into their own name instead of the tenant paying the SDGE bill. The owner then raises the rent by approximately the amount of what the old SDGE bill was and includes electricity in the rent. This way the tenants pay off the system and actually prefer it because now they have a fixed expense. After the solar loan is paid off, or the cash purchase has reached payback period, the owner profits the amount the electric bill would have been. In addition, the property value increases.