Time is Running Out to Maximize Solar Incentives for Your Business

If your business is considering going solar, now is the time to act. A proposed Senate bill—part of the One Big Beautiful Bill Act (OBBBA)—would significantly reduce the Federal Investment Tax Credit (ITC) for commercial solar starting January 1, 2026.

What Does This Mean for Your Business?

The 30% Solar Tax Credit Is on the Chopping Block

Currently, businesses can claim a 30% tax credit on commercial solar projects. But under the Senate’s proposed changes:

• The credit would drop to 18% in 2026
• Then phase down to as low as 6% in 2027, and disappear in 2028

That reduction could translate to hundreds of thousands of dollars in lost savings on a typical commercial installation.

You Can Still Lock in the Full 30%—If You Act in 2025

The IRS allows you to “safe harbor” your project, securing the 30% credit even if you don’t start construction until later, but to qualify, certain steps must be taken this year.

Safe harbor provisions for commercial solar projects enable businesses and developers to lock in the current 30% federal Investment Tax Credit (ITC) by meeting certain IRS requirements that show construction has “begun”—even if the project isn’t finished that year. 

New Restrictions on Foreign Components Begin in 2026

Starting in 2026, solar systems using components from “Foreign Entities of Concern” (FEOCs)—including some Chinese manufacturers—may become ineligible for federal tax credits.

Energy Storage Still Gets the Full 30% Credit

Looking at battery storage? You’re in luck. The 30% ITC for Energy Storage Systems (ESS) remains intact through 2033, making now a smart time to plan for solar + storage.

 

Batteries help reduce your reliance on the grid during high-demand hours when electricity rates are highest and allow your business to cut energy costs. This is called Peak Demand Shaving. By combining on-site solar generation with battery storage, your businesses can strategically use stored energy and solar power to avoid drawing expensive electricity from the grid, while also lowering its carbon footprint. Batteries also improve your energy security by keeping your business running when the grid goes down.

Don’t Miss the Window of Opportunity

The OBBBA is still making its way through the legislative process, and changes may occur. But one thing is clear: Waiting puts your full incentive at risk.

Our team can help you:

• Analyze your site and utility data
• Design the optimal solar + storage solution
• Navigate safe harbor requirements
• Structure your financing to maximize available credits

Start the Solar Process NOW

Federal policy is shifting quickly. The 30% commercial solar tax credit may soon be a thing of the past. To ensure you don’t lose out, begin your solar project before the January 1, 2026 deadline.