Solar Tax Credit : Critical Information for Business Leaders
Federal ITC expires December 31, 2027 - Key insights for strategic planning
While the federal solar Investment Tax Credit (ITC) has expired for residential installations, commercial projects can still claim the full 30% credit—but only until December 31, 2027. Here's what you need to know to maximize this opportunity.
THE DETAILS
-
For systems under 1 MW AC, businesses can claim a 30% federal investment tax credit (ITC) on eligible solar project costs.
-
Sub-1 MW systems are generally exempt from prevailing wage and apprenticeship requirements for the 30% credit, simplifying compliance and budgeting.
-
Timing: Under current law, the 30% ITC is available for qualifying projects placed in service through at least 2032, with a planned step-down thereafter. Programs evolve, so early planning is smart.
Why Rooftop Projects Are Well Positioned
-
Most commercial rooftops land comfortably under 1 MW AC, aligning neatly with today’s ITC rules.
-
Access to the full 30% credit without additional labor compliance at this size.
-
Predictable engineering and installation timelines that fit typical budget cycles.
-
Strong economics as utility rates and demand charges continue to trend upward.
Benefits Beyond the ITC
-
Lower utility bills and operating expenses
-
A hedge against utility rate volatility
-
Progress toward ESG and sustainability goals
-
Greater resilience when paired with battery storage
Battery Storage Incentives
-
Standalone battery storage can also qualify for a 30% ITC under current law when project requirements are met, independent of a solar installation.
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.