Did You Know? You Can Recoup 40% (or More!) of Your Solar EV Charging Investment with a Federal Tax Credit

Important Note: Please consult a tax professional. This article is provided as information only and is not tax advice.

At Paired Power, we’re dedicated to helping businesses and fleet operators transition to clean, resilient, and cost-effective energy solutions. If you’re considering our solar-powered EV charging systems, here’s an incentive you might not be aware of: the federal government offers a 30% Investment Tax Credit (ITC) that can significantly reduce your upfront costs.

And because Paired Power’s products are manufactured in Silicon Valley, corporations may be eligible for an additional 10% tax credit bonus for U.S.-manufactured components and materials.

Additional 10-20% bonus credits may also be available, depending on the project’s location.

What Is the Federal Investment Tax Credit?

The Investment Tax Credit (ITC) allows corporations to deduct 30% of the cost of installing a solar energy system from your federal taxes. This includes expenses related to solar panels, battery storage, and other associated equipment. The credit applies to systems installed from 2022 through 2032, after which it will decrease to 26% in 2033 and 22% in 2034.

How Does This Apply to Solar EV Charging?

If you’re investing in solar-powered EV charging infrastructure, the ITC can be a game-changer.

For example, if you install a solar EV charging system costing $75,000, you could receive up to a $30,000 tax credit, effectively reducing your net investment to $45,000. This credit applies to both residential and commercial installations, including associated battery storage systems.

Additional Incentives

In addition to the 30% ITC, there are other federal and state incentives to consider:

• ITC Bonus Credits: The Investment Tax Credit (ITC) includes bonus tax credits for projects meeting certain requirements such as:
  • 10% Bonus Credit: Domestic Content Minimums (% attributable to U.S. Manufactured Products)
  • 10% Bonus Credit: Siting in Energy Community ex. Brownfield site, area related to mining operations)
  • 10% Bonus Credit: Siting in Low-Income Community or on Indian Land (<5 MW_AC)
  • 20% Bonus Credit: Qualified Low-Income Residential Building Project or Economic Benefit Project
• Alternative Fuel Vehicle Refueling Property Credit: This provides a tax credit for 30% of the cost (up to $1,000 for residential installations) for EV charging equipment. (Note: Please consult a tax professional as claiming this tax credit can impact eligibility for the solar tax credit.)
• Clean Vehicle Tax Credit: Commercial fleets and other tax-exempt organizations buying qualified commercial clean vehicles may qualify for a commercial clean vehicle tax credit per vehicle (including electric, hybrid or fuel cell EVs).
• Additional Incentives by State: The U.S. Department of Energy provides a search tool which lists electric vehicle incentives by state.

Act Now: Potential Changes Ahead

While the ITC is currently set to remain at 30% through 2032, recent legislative proposals suggest potential changes. A House Republican tax plan aims to end several green-energy tax credits, including the 30% Residential Clean Energy Credit, by the end of 2025. This means that to maximize your savings, it’s advisable to act sooner rather than later.

How Paired Power Can Help

At Paired Power, our solar EV charging solutions are designed to provide reliable, off-grid charging for your electric vehicle fleet. By integrating solar panels with battery storage, our systems not only reduce your dependence on the utility grid but because they are solar power systems, they also qualify for the federal ITC, allowing you to recoup up to 40% of your investment (which is not the case for grid EV chargers that are not eligible for solar credits).

As a solar-powered product made in America, our PairPicnic tables are ITC-eligible as well.

Ready to Take Advantage of the ITC?

Don’t miss out on this opportunity to reduce your investment costs and transition to sustainable energy. Contact Paired Power today to learn more about our solar EV charging solutions and how you can benefit from the federal Investment Tax Credit.