Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax
Solar Thermal Electric
New Mexico provides a 10% personal income tax credit (up to $6,000) for taxpayers that own a residence, business, or agricultural enterprise who purchase and install certified photovoltaic (PV) and solar thermal systems on their property. Eligible systems include grid-tied commercial and industrial PV systems, off-grid and grid-tied residential PV systems, active solar thermal systems, and systems with or without storage. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. The taxpayer must then apply for the tax credit with the New Mexico Taxation and Revenue Department within 12 months of
The community renewable energy program in Massachusetts was first brought to legislation on July 2nd, 2008 through Chapter 169 of the Act of 2008 within Massachusetts' session laws. This Act introduced "neighborhood net metering" to Massachusetts, establishing the framework for community net metering projects. Neighborhood net metering is any Class I, II or III net metering facility serving 10 or more residential customers, served by a single distribution company and located within the customers' neighborhood. Net metering facility classification definitions may be found within the act here.
An important addition to neighborhood net metering comes from the Code of
On September 17th, 2021, the Governor of the State of Delaware signed into law Senate Bill 2, which amended the Renewable Energy Portfolio Standards Act and the Electric Utility Restructuring Act of 1999 to accelarate the adoption of community-owned solar photovoltaic systems in Delaware and to establish a process relating to community-owned energy generating facilities (CEFS).
Below are some of the key features of this program.
- The community-owned energy generating facility shall not have subscriptions larger than 200 kilowatts constituting more than 60% of its capacity.
- A community-owned energy generating facility shall not exceed a capacity of 4 megawatts.
New Jersey's community solar program is governed by the Solar Act of 2021 (L. 2021, c. 169) which established a new Successor Solar Incentive Program, also known as the “SuSI Program”. The SuSI Program implements the Clean Energy Act of 2018 (L. 2018, c.17) and the Solar Act of 2021 (L. 2021, c. 169). The SuSI Program provides incentives to eligible solar facilities to enable the continued efficient and orderly development of solar renewable energy generating sources throughout the state.
The program provides one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) for every megawatt-hour (MWh) of solar electricity produced
Residents or businesses can choose to invest in, or lease, a renewable energy system installation on the rooftops of their homes or businesses, or on their properties. However, some Connecticut residents and businesses are either not able to, or elect not to, invest in or lease an individual property installation for a variety of reasons (e.g., high installation costs, unsuitable rooftop orientation, shaded property, or because they rent instead of own their properties). Subscription to a shared clean energy facility (SCEF) provides an option that can be used to overcome such barriers, thereby expanding access to renewable energy to more
Community Solar in the state of Maine is governed by by P.L. 2019 c. 478, P.L. 2021 c.390, and Chapter 313 of the Public Utility Commissions (PUC) rules. These rules govern the state's Net Energy Billing (NEB) Policy. Under NEB there are two programs which customers can participate in "Community" or shared renewable projects, a kWh credit program, which is available to all electric utility customers, and a tariff rate program, which is available to non-residential customers.
The kWh program allows customers to choose to participate in a larger project on a “shared” basis with other customers. These
D.C. Act 20-196, enacted on December 13th 2013, established a community renewable energy program in the District of Columbia. This program sets a production capacity of 5MW on all systems, along with a minimum of two (2) subscribers. Community renewable energy facilities (CREF) may offset no more than 120% of the subscriber's electricity consumption over the prior 12 months. All individual billing meters must be within the District of Columbia. Credit rates will be applied to customer's each billing month, and will be allocated by multiplying the quantity of kilowatt hours allocated to each subscriber by the subscriber's CREF credit
The Non-Residential Renewable Energy Solutions (NRES) Program is a successor program to the Low Emission Renewable Energy Credit and Zero Emission Renewable Energy Credit (LREC/ZREC) and Virtual Net Metering (VNM) programs with the objectives to foster the sustained, orderly development of the state’s Class I renewable energy industry and to encourage the participation by customers in under served and environmental justice communities, among others. The program is authorized to run for six (6) years and to select up to sixty (60) MW of clean energy annually.
This is a six-year program that combines the state's previous Net Metering program and
The Enhanced Community Renewables Program is one element of the Green Tariff Shared Renewables (GTSR) Program, which was established by Senate Bill 43 of 2014. The Enhanced Community Renewables Program allows a customer to purchase a share of a community renewable energy project directly from a developer and receive a bill credit on their proportionate share of the system's production. The program is capped at 600 MW statewide.