Is Your Business Eligible for Solar Grants? How to Find Out

If you're looking into commercial solar power options for your business, there may be a few different ways of receiving helpful financial assistance in this process. One is the use of solar grants for businesses, which can be available at both the federal and local levels.

At Intermountain Wind & Solar, we're here to offer a wide range of solar power services to clients around Salt Lake City, Utah, and Boise, Idaho areas, including solar tax credits, grants, and various other financial incentives or assistance formats that might be available to you. Here are some basics on how solar grants for businesses work, some of the criteria that are typically required, and how to go about applying for and capitalizing on these grants if they're available to your business.

Types of Commercial Solar Grants Available

Let's begin at the federal level, where there are a couple of major programs meant to assist with solar grants for business needs. The most notable such program is the USDA Rural Energy for America Program (REAP), which is designed for non-profits, agricultural organizations, and commercial properties as they look to reduce energy costs and carbon footprint.

The REAP program can be combined with other tax incentives, and is typically awarded to cover a major share of the total system cost - up to 50% in many cases, in fact. The program also comes with some other key benefits:

• Technical assistance: Applicants can receive technical assistance in the form of energy audits and renewable energy development plans to help determine which technologies are best suited for their specific needs.
• Completion documents: The REAP program requires applicants to submit completion documents, including performance and warranty information, utility interconnection agreements, and more. This helps ensure that the project is completed successfully and can continue to operate effectively in the long term.
• Flexibility: The REAP program allows for a wide range of renewable energy technologies to be implemented, including solar, wind, biomass, geothermal, hydroelectric, and more. This flexibility allows organizations to choose the best option for their specific location and needs.

In addition to federal programs, both states and local municipalities often have their own grant programs to assist businesses with implementing solar and renewable energy solutions. These programs can help to supplement the costs associated with installing renewable energy systems, making it even more accessible for businesses of all sizes.

Checking Eligibility

Naturally, checking into whether your business is eligible for one of these grant types is vital as you're considering your options and financial support. Using the REAP program as our example, here are some of the notable requirements (many of which are similar for other grant programs, though some may not be):

• Eligible entities: To qualify for the REAP program, small businesses must be located in a rural area and classified as an SBA small business. For agricultural producers, 50% of gross income must come from the direct production of agricultural products.
• Eligible projects: As we noted above, the REAP program applies not just to solar, but also to several other forms of renewable energy. These include wind, geothermal, hydroelectric, and biomass projects. Additionally, the program covers energy efficiency improvements for small businesses in rural areas.
• Improvements that qualify: Furthermore, many energy efficiency improvements (EEIs) can also qualify for the REAP program. These include high-efficiency HVAC systems, insulation, lighting, and other energy-saving measures. Eligible EEIs must be installed within the scope of a renewable energy project, and they must provide energy savings to the business.
• Coverage amounts: As noted above, the REAP program can cover up to 50% of eligible project costs. This helps significantly reduce the financial burden for businesses looking to implement renewable energy solutions and improve their overall energy efficiency.

How to Apply

Luckily, most of the entities in charge of various solar grants for businesses have relatively simple, straightforward application procedures. For the REAP program, applicants are required to complete a detailed application form and provide supporting documents such as feasibility studies, cost estimates, and energy audits.

It's important for businesses to carefully review the requirements and ensure all necessary information is included in the application to increase their chances of being approved for funding. Be sure to also take note of any deadlines for submission and submit the application on time.

At Intermountain Wind & Solar, we're here to help clients around Utah and Idaho with all their solar needs, including with tax incentives and solar grants for businesses to help them make solar projects more feasible. Contact us today to learn more about how we can assist you with your solar energy needs!