New Tax Credits for Solar Irrigation Systems

With the number of legislation changes and amount of news circulating about solar profitability in agriculture, we’re here to set the record straight – or at least share the results we help our clients achieve. Here’s what we’re seeing:

The Facts About Irrigation System Solar

The Bottom Line: solar for irrigation systems still delivers serious returns. For every acre of solar installed, you’re looking at savings of $65,000 to $95,000. Depending on the footprint of your system, this translates to seven-figure savings over a 20-year period.

Now, let’s talk payback. Along with these savings, your system will pay for itself within 4 to 6 years. This isn’t a long-term gamble; it’s a smart investment with a clear and relatively quick return. Your Internal Rate of Return (IRR) is expected to fall between 13% - 22%. Essentially, you’ll watch as your money works for you.

Another Money-Maker: Tax Credit Bonuses

One more reason why now is the time to act: the Energy Community Tax Credit Bonus. This bonus adds a hefty 10% to the existing Federal Investment Tax Credit of 30%, bringing your total tax credit to 40% of the total project cost. To put it simply, if you’re looking at a $1M project, you’ll receive $400,000 back in tax credits that can be used immediately or carried forward over multiple years.

The great part for us in California? Most of the Central Valley qualifies for this bonus, and we at JKB screen every client to ensure this bonus tax credit is applied whenever possible.

Why Wait?

Energy costs are consistently rising, and continuing to operate without solar is a surefire way to leave money on the table. Considering the savings, ROI, and tax incentives, solar shouldn’t be overlooked – it should be viewed as a strategic business move that can significantly impact your bottom line.

At JKB Energy, we’re here to ensure you get the most out of your investment. Call us today at (209) 668-5303 to start your savings.