Solar Hot Water for Commercial Properties in Philadelphia & Vicinity


Renewable Energy Investment Tax Credit

The Federal Business Energy Tax Credit (or “Investment Tax Credit” or “ITC”) is a 30% tax credit available to commercial businesses that invest in or purchase solar property in the United States. Solar energy property includes equipment that uses solar energy to generate electricity.

In December 2015, the ITC was extended through the end of 2019 with provisions for reduced percentage credits of 26% for 2020, 22% for 2021, and 10% thereafter. For more information, please refer to Business Energy Investment Tax Credit (ITC) website and Form 3468, Investment Credit page on IRS.gov.


Dollars and Cents:
At right is a chart (click to enlarge it) showing a 79% drop in natural gas use after installation of our solar hot water system along with a high efficiency hot water heater on a 16 unit apartment building. This translates to natural gas expenditures dropping from approximately $4,200 per year to $1,000 per year based on a price of $2.14 per CCF.
Increase in Net Operating Income:
The annual gas savings and increase in NOI are approximately $3,200 per year.
Increase in Property Value:
It is estimated that the value of this building increases about $14 for every $1 increase in Net Operating Income. Using a 14 multiplier (7.14% cap rate), the $3,200 increase in NOI translates to a $44,800 increase in property value, which well exceeded the installed cost.
Decreased exposure to energy price increases.
When fossil fuel prices go up, sunlight remains free.
The letter to the right was from the pleased owners of the subject apartment building. See other positive referral comments.