Time Is Running Out to Maximize Solar Incentives for Your Business
If you are considering solar for your business, NOW is the time to act. The Big Beautiful Bill includes significant reductions in tax credits for solar that could negatively impact future energy projects.
What Does This Mean for Your Business?
The 30% Commercial Solar Tax Credit Will Go Away
Currently, businesses can claim a 30% federal tax credit on commercial solar and/or energy storage projects. Under the One Big Beautiful Bill signed into law on July 4th, commercial solar projects that have already been planned, financed, and approved still qualify for the applicable tax credit, as long as they begin construction before June 2026 or are operational by the end of 2027. Projects may be “safe harbored” and may include materials that do not meet FEOC (Foreign Entity of Concern) requirements if construction begins by the end of 2025.
Other solar-related provisions in the OBBB:
- Residential solar leasing companies can receive the 30% Federal Tax Credit, or ITC (48E).
- Commercial solar projects that start construction less than 12 months after the bill’s enactment and are placed into service within four years can still claim the full ITC (48E) credit, as long as equipment meets FEOC requirements.
- Tax Credit for Energy Storage (batteries) has not been affected by the new law, but will be subject to FEOC rules.
- Physical work test is narrowed and does not include “preliminary activities”
- Projects larger than 1.5 MW must use “physical work test”
- Projects smaller than 1.5 MW can still use 5% safe harbor
- All projects still have four years to be placed in service under the continuity safe harbor
We urge businesses to reach out as soon as possible to start the process of going solar as safe harbor rules are uncertain after 2026. By starting work on your solar installation before the end of the year, companies can better solidify their claim to the 30% commercial solar tax credit.
With the expected rising costs of energy rates and demand charges, plus 100% depreciation, many customers are finding that a solar investment, even without the federal tax credit, still makes economic sense. Locking in energy rates makes good business sense when forecasting business costs. Acting now and procuring equipment as soon as possible is also protection against additional possible tariffs.
We help businesses:
- Protect their tax credits
- Assess site feasibility
- Navigate safe harbor rules with confidence
It is important to start planning your project NOW to have the best chance to qualify for the tax credit.
A commercial battery installation designed by Good Energy Solutions.
Tax Credits for Energy Storage Remain Intact
Looking at battery storage? You’re in luck. The 30% ITC for Energy Storage Systems (ESS) remains intact through 2033 (FEOC restrictions apply), making now a smart time to plan for solar + storage
Batteries can help reduce your reliance on the grid during high-demand hours when energy rates are highest for Time of Use rate structures to allow your business to cut energy costs. Batteries can also reduce monthly utility bills by dumping their electrons into your facility during high power events during the day. The battery is then recharged during lower power usage hours, effectively reducing demand charges that the utilities add to your bill. This is called Peak Demand Shaving. Demand charges (based on instantaneous kilowatts of power) can be as expensive on some customer bills as the energy charges (based on kilowatt hours of energy), By combining on-site solar generation with battery storage, your business can strategically use solar power and stored energy to avoid drawing expensive electricity from the grid while also lowering its carbon footprint. Batteries improve energy stability and security by potentially keeping your business running when the grid goes down, if that is a design consideration.
Don’t Miss the Window of Opportunity
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. To ensure you don’t lose out on all possible incentives, begin your solar project as soon as possible.
* This blog post has been updated on August 22, 2025.
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Our mission at Good Energy Solutions is to provide our customers with honest, real solutions to reduce their fossil fuel consumption and lower their long term energy costs. Our combination of hands-on experience, education, and outstanding customer service make our company the clear choice to help you achieve your energy goals.
Founded in 2007 by Kevin and Shana Good, Good Energy Solutions has earned a reputation for our expert reliable service, long workmanship warranties, and quality commercial and residential solar installations.
We are engineers and craftsmen designing for efficiency while keeping aesthetics and longevity in mind. Because of our installation quality and customer service, Good Energy Solutions' solar panel systems feature some of the longest product and service warranties in Kansas and Missouri. Also, we have more NABCEP® Certified Solar Professionals on staff than any other company in Kansas or Missouri. To achieve this certification, PV installers must demonstrate that they possess extensive solar PV installation experience, have received advanced training, and passed the rigorous NABCEP certification exam.
If you would like to know more about solar power for your home or business, contact us here.