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With energy costs rising across New England, our Commercial Solar Consultants have been hearing the same questions from business owners all summer: “What’s up with the Tax Credit and is this the right time to consider solar?” The Investment Tax Credit (ITC) has been the foundation of solar projects for nearly two decades, and there’s been a lot of media surrounding it, so it’s not surprising that people are confused about this.
But there actually is still (limited) time for businesses and nonprofits to access the 40% tax credit. Projects placed in service before the end of 2027 will qualify as long as they use eligible materials.
*If you’re a small business owner, you might want to apply for our Small Business Solar Accelerator.
The key, however, is that time is limited. Even though the end of 2027 seems like a long ways off, the timeline for commercial solar projects is not fast. Developing and constructing a solar project takes time. There are engineers creating and stamping electrical diagrams, and coordination with structural experts, town authorities, and the utility. Things like permitting and utility interconnection can take months, and those timelines are outside of our control. And with the tax credit set to expire, utilities are being inundated with applications.
Jen Stevenson Zepeda, a Commercial Solar Consultant in Massachusetts, explains a recent example: “One of my more recent projects took 5 months from the utility receiving the interconnection application to being approved- and I’d say that’s pretty quick. So we need to make sure we save enough time for a typical development and construction life cycle!”
And by acting now, businesses can start reducing their electric bills. Utilities in all three states – from Eversource to Central Maine Power to National Grid – have increased their rates this year, straining the budgets of small businesses. But by utilizing the ITC, a solar return-on-investment becomes much shinier.
“And the ITC is also available to non-taxed entities like non-profits, via Elective Pay” adds Rachel Eades, a New Hampshire Commercial Solar Consultant. “You can cover 40% of your install costs! And with electric rates rising, generating your own solar energy on the roof will save you money for decades to come.”
“We’re seeing some of the strongest commercial solar economics I’ve seen in years,” says David Webb, another New Hampshire employee-owner. “For businesses considering solar, the question is no longer just ‘Does this make financial sense?’ but also ‘Can we realistically get this project completed before the deadline?'”
David, Rachel, and Jen are all strongly recommending business owners get in touch with their team. They can take a look at existing electric bills and create a proposal that shows exactly how much money businesses will save by switching to solar.
Interested to learn more? Get started with Jen, Rachel, David, and the team here.
