June 4, 2026
It is time to be brave and bold in terms of your commercial solar investment plans. The federal Commercial Solar Energy Credit, otherwise known as the Investment Tax Credit (ITC), can dramatically reduce the cost of installation and accelerate your return on investment. This valuable incentive is set to expire.
This tax incentive provides a minimum 30% tax credit (or equivalent in direct payment from the IRS for tax exempt organizations) of the total cost of installing a solar energy system, with no cap on its value. This incentive was extended through the Inflation Reduction Act of 2022 but the timeline was reduced with passage of last year’s federal budget reconciliation bill.
The ITC is set to sunset in two stages. Project must meet one of the following deadlines:
- Stage One July 4, 2026 – Projects must be under construction or a substantial investment (at least 5% expended) in materials must be made before the deadline of July 4, 2026. Meeting this deadline allows a project four years to complete.
- Stage Two December 31, 2027 – Alternatively, projects must be complete and interconnected by December 31, 2027.
It is not too late to take advantage of either of these deadlines – especially if your organization is able to act quickly. If you haven’t begun the procurement process, the July 4th deadline will be extremely difficult to meet. However, achieving the end of 2027 deadline is very doable. The earlier you start, the more likely you are to meet the end of 2027 deadline.
There are experts across the state of Pennsylvania who are ready to help organizations reach their goals with low-cost technical assistance. Here in Southeast PA, the partnership between Solarize Greater Philadelphia and the PA Solar Center provides one-on-one assistance to take you through all phases of the project from feasibility to energizing the system. To jump start the process, fill in the GET Solar Inquiry Form and we will schedule an intake interview.
It is important to note that organizations can get an acceptable payback without the ITC and that Solarize Greater Philadelphia will be here to help you even after the tax incentives expire. If you are looking to add solar to your facility, acting now enables your organization to take advantage of this limited-time opportunity.