Tax Credit

If you are producing your own power for your processing facility, you may access the USA 10 percent microturbine or CHP tax credit, or up to 30 percent for solar energy.

All industrial SDR units are 480V 3-phase power.

For more information please visit: https://www.energy.gov/savings/business-energy-investment-tax-credit-itc

IRS Info: https://www.irs.gov/pub/irs-pdf/i3468.pdf

From the website:

Microturbines: The credit is equal to 10% of expenditures, with no maximum credit limit stated (explicitly). The credit for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) in capacity that have an electricity-only generation efficiency of 26% or higher.

Combined Heat and Power (CHP): The credit is equal to 10% of expenditures, with no maximum limit stated. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. See the note at the bottom of this page for more details. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system’s energy source, but the credit may be reduced for less-efficient systems. This credit applies to eligible property placed in service after October 3, 2008.

Solar Technologies: Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.

Power For Your Water Extraction Facility: 480 V 3-Phase Power. If you do not have 3-phase power, we can also quote a Capstone Turbine gas or LPG (or even diesel or vegetable oil powered) microturbine system, container mounted. One containerized system can produce 1 megwatt (1,000 kW). In the USA, you may be eligible for a 10 percent tax credit (up to 2 MW up through 2021) to install a microturbine, as well as access to power producer gas rates. If you pay more than $.10 a kwh for power, this may be a consideration.

From Baker Tilly: “The Investment Tax Credit (ITC) Section 48 allows project owners or investors to be eligible for Federal business energy investment tax credits for installing designated renewable energy generation equipment placed in service during the period 2006 through 2024. Most recently amended by the Bipartisan Budget Act in March of 2018, this evolving program continues to be a source of significant value to both renewable energy project developers, and forward-thinking commercial and industrial energy consumers.” (Source and more info)