2020 Safe Harbor Deadline is Coming Fast!
Safe Harbor Basics
Safe Harbor gives solar developers and contractors a vehicle to take advantage of current ITC solar tax credit rates for projects that won’t be completed in the current calendar year. In 2020, the tax credit is 26%, drops to 22% in 2021, and 10% for commercial and utility-scale projects in 2022.
Projects can use Safe Harbor rules in two ways – either with a 5% financial investment toward physical products to be used in the construction of the project or with strong evidence to show project start prior to the end of the year along with proof of continuous work.
Projects must be completed and in service within 48 months of start date to be eligible.
For companies purchasing equipment to meet the 5% financial investment, purchases must be made (money exchanged hands) by December 31, 2020, and delivery of said products must occur by March 31, 2021.
If you are unsure if your project will qualify for Safe Harbor, consult an attorney.
Choosing CPS Inverters over PV Modules to Meet Safe Harbor
Choosing CPS America inverters instead of PV modules makes financial and logistical sense.
Stable pricing: PV pricing changes weekly, up to ± 10% per quarter. And more efficient, higher-wattage panels are on track to enter the market over the next two years. With each improvement comes a lower price point per watt. CPS America’s #1-rated, 3-phase, string inverters provide stable pricing versus fluctuating module pricing.
Future-proofing tech: NREL is projecting fast-paced PV module efficiency improvements over the next few years. PV modules can’t have a “firmware update” in the field. But CPS America inverters can.
Easier storage: PV pallets are not stackable, requiring a large floor space. Compare the space required to store 250kW of PV modules for ~$1,000/month versus 10MWac worth of CPS America inverters for an equivalent $1,000/month. And CPS inverter pallets are stackable!
Off-site storage: CPS America provides options for us to store your inverters, saving you even more money on storage.
Safe Harbor and COVID
2020 saw an extension to allow contractors and developers to take possession of products due to COVID. However, in 2021, no such allowances will be made. COVID is a known factor. However, there are still COVID disruptions in global supply chains, and PV module delivery is not guaranteed. CPS America inverters are in stock now, guaranteeing delivery by March 31, 2021.
CPS Products In-Stock Now
Ready to Make the “Safe” Choice for Safe Harbor?
- Understanding ‘safe harbor’ for extending your 30 percent solar ITC qualification
- Beginning of Construction for the Investment Tax Credit under Section 48
- Safe Harbor in the Covid storm for your 2020 solar project: “Do it now.”
- NREL’s solar cost projections plummet in new forecast
- PV module prices are falling faster than all predictions
- Solar Investment Tax Credit (ITC)