Discover the top four financial benefits that increase the returns from your solar energy system in Michigan making your transition to renewable energy easier and more affordable. Click here to visit our case studies page to see how these savings have worked on real projects.
1. Energy Savings: Invest in Your Future
One of the most compelling reasons to invest in solar energy is the substantial energy savings you'll achieve over time. By generating your own electricity, you can significantly reduce your monthly utility bills. Over the lifespan of your solar panels, these savings can add up to thousands of dollars, effectively offsetting the initial installation costs.
Additionally, as energy prices continue to rise, locking in your energy costs with solar ensures that you are protected from future rate hikes, making it a smart long-term financial decision.
2. Depreciation Benefits: Maximizing Your Investment
The OBBB restored the 100% bonus depreciation, a powerful tool that allows businesses to deduct the entire cost of qualifying solar equipment in the first year. This can result in immediate and substantial tax savings, especially for profitable businesses with high tax liabilities. When combined with the 30% Investment Tax Credit (ITC), bonus depreciation offers an opportunity for major upfront relief, making solar even more financially attractive.
3. Harnessing the Power of Tax Credits
Federal tax credits play a major role in making solar energy systems more affordable for farms and businesses. One of the most impactful incentives is the Federal Investment Tax Credit (ITC), which allows businesses to deduct 30%-50% of the total cost of a solar installation from their federal tax liability. This credit directly reduces the amount of taxes owed, offering substantial savings.
4. Other Grants & Incentives for Solar Projects
Various grants are available to support the adoption of solar energy, helping reduce the financial barriers for farms and businesses looking to make the switch. Additionally, private foundations and energy-focused organizations may offer grant opportunities targeted at specific industries, regions, or project types.
These grants are typically designed to cover a portion of the upfront costs, such as equipment, labor, or permitting, making solar more accessible to a wider range of operations. By providing non-repayable funding, they can significantly improve the return on investment and shorten the payback period. For many farms and businesses, grants serve as a critical tool in making solar energy both achievable and cost-effective.
Important Disclaimer
Harvest Solar is not a tax advisory firm or legal counsel. This information is provided for general educational purposes only. The interpretation of tax law can be complex and may evolve rapidly as new regulations, executive orders, and guidance are developed. Given the recent executive order signed July 7, 2025, and ongoing regulatory changes, the landscape for solar tax credits is particularly fluid. We strongly recommend consulting with qualified tax professionals and legal counsel who specialize in renewable energy tax law to understand how these changes specifically impact your business tax situation and to ensure you receive accurate, up-to-date advice for your circumstances.
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