LOWER SPEND

BIGGER
PARTY

CASH IN

POWER UP

REAP Grants & Loans

Combined Heat & Power (CHP) and solar carports qualify for USDA Rural Energy for America Program (REAP) Grants and Loans, which can cover up to 50% of eligible project costs—up to $1 million—with loans available to finance the remaining balance.

REAP-eligible zones aren't limited to "rural" areas. In California, Sonoma and Napa Valleys, the Central Valley, and many rural areas along Interstate 5 north of Sacramento are REAP. In the Northeast, significant eligible regions cover much of western and central Massachusetts (including Berkshire and Worcester counties), large parts of upstate New York such as the Hudson Valley and Adirondacks, and extensive rural areas of Vermont, New Hampshire, and Maine north of Portland. Additionally, many hotels along interstate corridors like I-90 and I-91 fall within eligible rural zones.

Is Your Hotel Eligible for REAP?

ENERGÍA

CONFIABLE

FUTURO VIBRANTE

REAP in Puerto Rico

Unlike the mainland U.S., where REAP eligibility is restricted to rural zones, the entire island of Puerto Rico qualifies—including metro areas like San Juan. By combining REAP grants, Bonus Depreciation, and the 30% Investment Tax Credit (ITC), hotel owners can substantially reduce project costs, leading to faster returns.

Solar Carports & CHP Makes Sense in Puerto Rico

Profitability: With grid electricity approaching $0.44/kWh, CHP systems powered by natural gas produce electricity for as little as $0.12/kWh. With heat recovery, total energy costs can drop by up to 73%.

Asset Value: For a 100,000-square-foot hotel, that kind of savings exceeds $1 million annually, adding more than $12.5 million in asset value.

Resilience: Puerto Rico’s grid is vulnerable to outages. Solar carports and CHP offer independent, reliable power. During Hurricane Irma, when 90% of St. Thomas lost power, Margaritaville Resort’s propane-fueled CHP system stayed online, even through 130+ mph winds.

TIME IS

MONEY

Bonus Depreciation

Hotel owners investing in Combined Heat & Power (CHP) systems and solar carports have a renewed opportunity to maximize tax benefits thanks to the restoration of 100% bonus depreciation.

Under the new legislation, qualified property placed in service between January 20, 2025, and January 1, 2030, is eligible for 100% bonus depreciation—allowing the full cost of the investment to be deducted in year one.

Example tax savings for a $1 million investment with 21% corporate tax rate:

2025–2029 (with 100% bonus): $1,000,000 deduction → $210,000 tax savings
2024 (still phasing down): 60% bonus → $600,000 deduction → $126,000 tax savings

This change makes 2025–2029 an ideal window for hotel owners to plan major energy upgrades and lock in maximum tax advantages.

Learn More About Bonus Depreciation

SANTA APPROVED

SAVINGS

Investment Tax Credit (ITC)

The federal Investment Tax Credit (ITC) under Section 48E offers a 30% tax credit for eligible commercial renewable energy projects, including solar carports (but not CHP systems). This credit is available at 30% for projects that begin construction by July 2026 or are placed in service by December 31, 2027, making it a strong incentive for hotels to invest in visible, guest-friendly sustainability upgrades.

On a $1 million solar carport, the ITC delivers a $300,000 direct federal tax reduction, immediately lowering the effective project cost to $700,000 and improving ROI.

For hotels in REAP-eligible zones, up to $500,000 may be covered by REAP, with the remaining $500,000 still eligible for the ITC (yielding an additional $150,000 credit). Combined with bonus depreciation and other incentives, these savings can dramatically reduce overall costs.

THE GAP

BRIDGE

State and Local Incentives

State and local incentives can significantly lower the cost of installing CHP systems and solar carports, helping hotels reduce upfront expenses while boosting long-term savings. By stacking these local programs with federal incentives, owners can achieve faster payback and improved ROI.

West Coast Leaders
California, Oregon, and Washington offer top-tier utility rebates and strong solar + storage incentives for commercial properties

Northeast Efficiency Champions

Massachusetts, New York, Vermont, and Connecticut lead with aggressive incentives for lighting, HVAC, CHP, and solar—especially for hotels and large buildings

High-Value Central States
Maryland, Illinois, Colorado, and Minnesota provide broad efficiency rebates and reliable solar incentives across a range of commercial retrofit projects.

Check Available Incentives

ZERO

UPFRONT CAPITAL

PACE Financing

PACE (Property Assessed Clean Energy) financing helps hotel owners fund energy upgrades like solar carports and CHP without upfront costs. Repayment happens through property tax assessments over long terms, often up to 30 years, making it easier to improve cash flow and asset value.

Pros

No upfront capital needed
Long repayment terms
Transfers with property sale
Can combine with other incentives

Cons

Availability varies by location
May require lender approval
Considered a senior lien
Increases property tax bills temporarily

Learn More About PACE

GROW

YOUR
VALUE

Other Financing Options

If PACE financing isn’t available in your state or doesn’t align with your objectives, we have a range of alternative financing solutions backed by strong relationships with banks and private lenders. We work closely with hotel owners and investors to evaluate options such as traditional loans, energy project financing, or lease structures that fit their needs. Our goal is to ensure you have access to cost-effective, flexible funding that aligns with your cash flow targets and long-term investment strategy, so you can move forward with confidence on energy-saving upgrades.

MARK

RIGHT
ON THE

REAP and Financing Expertise

Our REAP grant team brings deep expertise, with a $1 billion funding track record and a 95% success rate. They’ve delivered standout wins such as a $23 million DOE GRIP GRID grant for a Florida town and successfully structured combined USDA Small Business and REAP loans of up to $50 million. Their hotel successes include funding projects like the Best Western near Sedona, AZ—demonstrating their ability to navigate complex financing.

Our financing team offers equally strong credentials, with experience across more than 100 energy efficiency projects totaling over $200 million, maintaining a flawless 100% funding delivery rate. Their leadership is deeply involved in national PACE organizations and has helped launch statewide C-PACE programs, underscoring their commitment to reliable, expert-driven financing solutions.