BUSINESSES ARE CAPITALIZING ON IRA BENEFITS WHY NOT YOURS?
COMMERCIAL PV + STORAGE
WHAT’S FUELING THE PV + STORAGE SURGE IN HAWAII’S COMMERCIAL SOLAR MARKET?
INFLATION REDUCTION ACT Best Incentives in the Last 15 Years
30 % Federal Tax Credit
(+10 % ) Domestic materials (+10 % ) Energy community (+10-20 % ) Low-income residential building project or qualified low-income economic benefit project Direct pay for tax-exempt and non-profit organizations plus state and local governments. Federal and State depreciation 35 % State income tax credit
EXAMPLE SYSTEM COST
$600,000 $593,040 $6,960
Installed Cost Incentives Your Net Cost
Net Cost
Incentives 98 %
HAVE YOU INVESTED IN SOLAR?
YES
Upgrade or Replace Your Existing System Now
NO
Get a New Installation Now
200 kW rooftop system 340,000 kWh in first year 40% Fed. ITC in census tract 50% Federal ITC possible? NEW INSTALLATION Case Study Example The Numbers Installed Cost: $600,000 Incentives: $593,040 Net Cost: $6,960 1st Year Savings: $91,791 25 year Savings: $3,091,484 Payback Timeline: <1 year IRR: 49%
NEW INSTALLATION Cumulative Income
$ 4,000,000 $ 3,500,000 $ 3,000,000 $ 2,500,000 $ 2,000,000 $ 1,500,000 $ 1,000,000 $ 500,000 $ 0 - $ 500,000 - $ 1,000,000
0
25
Y E A R S
UPGRADING EXISTING SYSTEM Case Study Example Recent Proposal *Existing System New System (same footprint)
The Difference
kW:
50kW
100kW 150kW
kWh: Annually 170,000 255,000
85,000
Annual Savings $51,000* $76,500 $25,500
20 Year Savings $1,370,389 $2,055,584 $685,195
Servicing Cost
High
None
*if working properly/not including degradation **assumes 3% increase in utility rates per annum
UPGRADING EXISTING SYSTEM Case Study Example
EXISTING SYSTEM $25,000 Savings
NEW SYSTEM $50,000 Savings!!!
WHY ACT NOW?
New Trump Administration IRA Uncertainty
Trump Vows to Pull Back Climate Law’s Unspent Dollars politico.com
On Inflation Reduction Act Reform, Anything Short of Full Repeal is Failure
cato.com
Repeal the Inflation Reduction Act
nationalreview.com
“Rather than take a scalpel to the law, Congress has a rare opportunity to undo all of it.” nationalreview.com
POLITICAL CLIMATE SHIFTS Scale back or repeal renewable energy incentives. Changes to credit scope and eligibility. Pending guidance and interim rules are particularly vulnerable. Large credits with significant fiscal impact, could be targeted to fund other priorities.
HOW REAL IS THE THREAT TO THE IRA? A Familiar Playbook Executive orders and regulatory rollbacks were key tools of the Trump administration in repealing and replacing environmental policies.
Likely Targets Include Clean energy tax credits (solar and EVs). Emissions regulations and other environmental standards. What’s at Risk? Tax credits with pending or interim guidance.
Credits with large fiscal costs, like the ITC, which may be scaled back or eliminated. Key renewable energy policies could face delays or outright repeal.
NOT READY FOR SOLAR?
A Proven Solution Safe Harboring
WHAT IS SAFE HARBORING? Safe harboring allows businesses to lock in the current benefits of the Inflation Reduction Act (IRA), even if future legislation reduces or eliminates incentives. By making a contractual & financial commitment now, you can secure the benefits for 4 years.
WHY YOU SHOULD ACT NOW?
The new administration has made statements to dramatically revise the IRA. Industry experts: Tariffs on panels imported from China may rise. Purchasing Materials Now can help mitigate any inflationary impacts.
UNDERSTANDING SAFE HARBOR The IRS established a Safe Harbor provision: allowing customers to lock in tax credits by “ beginning construction ” on a solar project. Two approaches qualify: Incur 5-10% of Total Project Cost Make a financial commitment by year-end.
Begin Physical Work of a Significant Nature Start tangible construction activities on the project.
HOW LONG DOES SAFE HARBOR LAST?
2026
2025
2027
2028-29
Once you meet the requirements to “begin construction”, the provisions allow you to claim the current tax incentives for up to 4 years from the date of qualification.
WHY TIMING MATTERS
Safe harboring sooner helps ensure you lock in the maximum value of the
current incentives. For example, safe
harboring now means you preserve the full benefits of the IRA incentives as they stand now. Waiting until later could expose you to more risks, including higher material costs, increased tariffs, and potential legislative changes.
HAS THE PROCESS IMPROVED?
YES
TYPICAL SOLAR TIMELINE
HECO app. HECO approval Permit
Materials
Construction
Time to PTO -7
1
8
23 weeks
38 weeks
weeks
week
weeks
WHY CHOOSE REVOLUSUN A Proven Track Record and Capabilities.
100+ MW Solar Installed
40+ MWh Storage Installed
10,000+ Residential Customers
200+ Commercial Customers
COMMERCIAL PROJECTS
COMMERCIAL PROJECTS
Partial list
American Red Cross Kapiolani Medical Center *Highway Inn Waipahu *Alder Street Kobayashi Group University of Hawaii Star of Honolulu *Maunalani Nursing *Elks Lodge Waikiki Cole Academy – 2 locations Camp Palehua Castle Surf * Island Pacific Academy The Element *VA Clinic Kalaeloa - Hunt Foodland Distribution Humane Society Kapolei Forest City Kona Commons ABC Stores * Hanua Distribution Center Wilcox Memorial Kalapawai Market Waimanalo
Bank of Hawaii Kapolei United Fishing Agency * POP Fishing & Marine *Nico’s *Hawaiian Ice Ba-Le AIPA Kapolei Commons Department of Education Kupu A-American Custom Floor Foodland Distribution Center Kokua Hawaii Foundation Lifeline Fire & Security Maui Honda Plaza at Kaneohe Regal Theaters Kapolei St. Peter’s Episcopal Church *Ace Hardware Kalapawai Market Kapolei Safeway Distribution Warehouse
*pictured
MAHALO Contact us to learn more Steve Mazur 808.748.8888 steve.mazur@revolusun.com revolusun.com
Please join us for RePower & Safe Harboring Opportunities Workshop on April 17, 2025.
5pm-7pm RSVP for the RePower with Revolusun& Safe Harboring Workshop
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