Incentives for Renewable Energy and Energy Efficiency
Federal Investment Tax Credit (ITC)
The Solar Investment Tax Credit (ITC) has been critical to the growth of the U.S. solar industry over the past decade. The ITC provided residential and corporate taxpayers a 30% tax credit for solar PV and solar water heating systems until the end of 2019. At the start of 2020, the ITC began a phased step-down according to the following schedule.
For systems installed:
January 1, 2020 - December 31, 2020: ITC = 26%
January 1, 2021 - December 31, 2021: ITC = 22%
January 1, 2022 and thereafter: ITC = 10% (commercial & industrial systems)
= 0% (residential systems)
To learn more about the Federal ITC, visit: https://seia.org/initiatives/solar-investment-tax-credit-itc
USDA REAP Grants & Guaranteed Loans
The USDA's Rural Energy for America Program (REAP) provides grants and guaranteed loans to agricultural producers and small rural businesses for investments in renewable energy systems and energy efficiency measures. Grants can cover up to 25% of project costs and can range from $1,500 to $500,000 depending on the size and type of project. To learn more, visit the US Department of Agriculture REAP program webpage.
Kentucky Agricultural Development Fund On-Farm Energy Efficiency Incentives Program
The KADF Program provides incentives for Kentucky farm families to increase the energy efficiency of existing equipment or facilities. Solar and other renewable energy systems are eligible for incentives. Successful applicants may receive up to 50 percent reimbursement of the actual cost of a qualified energy saving item, up to $10,000. Applicants may also be reimbursed an additional $150 for a third-party energy audit. To learn more, visit: https://agpolicy.ky.gov/energy/Pages/default.aspx
Property Assessment Clean Energy (PACE) Financing enables eligible commercial property owners to finance up to 100% of the cost of clean energy and water-saving improvements to their facilities with no out-of-pocket expenses. PACE financing, also known as EPAD (Energy Project Assessment District), is only available in certain jurisdictions within Kentucky. Kentucky's PACE programs are administered by Energize Kentucky, a program of the Greater Cincinnati Energy Alliance. To learn more, visit www.kypace.org.
Database of State Incentives for Renewables and Efficiency
The DSIREUSA database, provided by the North Carolina Clean Energy Technology Center, offers a comprehensive nationwide database of incentives offered by local and state governments, utilities, and the Federal government. Visit www.dsireusa.org.