If solar is on your company’s radar, time is running out to take advantage of one of the most valuable incentives for commercial projects: the federal Investment Tax Credit (ITC).
Read on to understand how the 2025 Reconciliation Bill, also known as the Big Beautiful Bill, impacts commercial solar now and in the future.
An Overview of the Investment Tax Credit (ITC)
The ITC is a federal incentive that allows businesses to deduct between 30 to 50% of the total cost of a solar energy system from their federal taxes. This credit has been a driving force behind the exceptional returns seen in commercial solar projects.
When combined with state tax credits, utility rebates, and depreciation incentives, the overall financial impact is substantial. Here are a few examples from our 850+ completed projects:
- Storm Products (UT): System payoff in under a year, with projected $2.9 million in lifetime savings, enhanced by available incentives
- Broce Manufacturing (OK): Over $2.1 million in lifetime value from a 397.9 kW system, driven by tax credits, rebates, and long-term energy cost avoidance
- KanEquip (KS): More than $1.6 million in lifetime savings, with the ITC lowering upfront costs and strengthening ROI
- Keusch Glass (IN): A small business success story, this 18.5 kW system paid for itself in under a year, delivering $2,000+ in first-year savings and an expected $89,000 in lifetime value
These project outcomes reflect the benefits of the current ITC. However, upcoming changes could significantly alter these economics for future projects.
How the 2025 Reconciliation Bill Impacts Commercial Solar
After months of debate, the final bill was signed by President Trump on July 4, 2025. For commercial solar, notable changes included:
- ITC Deadline: To claim the full solar tax credit, projects must be completed by Dec. 31, 2027. After Jan. 1, 2028, this credit drops to 0% without a gradual phase-out.
- 100% Bonus Depreciation: Full year-one depreciation is back, which allows for the ITC and depreciation to be stacked for the biggest tax advantage.
If you have concerns about these or any solar-related aspects of the bill, we would be happy to answer your questions.
Why Acting Now Matters for Your Energy Costs
Energy costs were rising rapidly ahead of the bill and aren’t slowing down.
In a May 2025 report, the ICF reports that U.S. electricity demand is expected to grow 78% by 2050, while energy infrastructure investments lag behind.
Rate increases are already affecting businesses:
- Duke Energy: 14% increase for Indiana businesses
- Dominion Energy: Proposed 14% jump in Virginia
- PJM: Auction results show a potential 29% rise in commercial customer rates
Nationwide, commercial electricity rates are 28% higher than a decade ago (Electric Choice). With the reconciliation bill signed into law, it’s expected to reduce electrical generation capacity by 340 GW by 2032. Meanwhile, demand continues to climb.
The result? Continued utility increases that will only cut more and more into your operating expenses and bottom line.
Solar offers protection and stability against these rising costs, giving you control of your energy.
Next Steps: How to See if Solar Makes Sense for Your Business
Even if you’re unsure, it’s smart to explore the options and run the numbers. Our team can prepare a free, no-pressure solar analysis showing:
- Custom system design options
- All available incentives
- Estimated savings and ROI
- Expected system payoff date for your facility
Artisun Solar gives you honest answers. If solar isn’t a fit, we’ll tell you. But if it is, you’ll be ready to act and get your plan in place before utility rates go up.
Get started here in under 2 minutes, and a member of our team will reach out soon.
Glossary: Solar Incentives Explained
- Investment Tax Credit (ITC): Federal tax credit covering 30% of solar system costs
- Safe Harbor: Allows businesses to secure the 30% ITC with a signed contract and 5% upfront payment, even if physical construction begins later
