If your business is feeling the weight of rising energy costs, you’re not alone. Utility rates keep climbing, cutting into profit margins and making long-term financial planning more difficult. But there’s good news: the federal government is paying businesses to go solar.
The Commercial Solar Tax Credit, officially known as the Investment Tax Credit (ITC), allows businesses to deduct 30% of the cost of a solar installation from their federal tax liability. That means serious savings—tens or even hundreds of thousands of dollars off your tax bill.
And that’s just the start. When combined with accelerated depreciation, state incentives, and energy savings, most businesses see an ROI in 3-7 years—while locking in decades of lower energy costs. Let’s break down what this credit means for your bottom line and why acting now is critical before incentives start changing.
What is the Commercial Solar Tax Credit (ITC)?
The Investment Tax Credit (ITC) is a federal incentive designed to make solar energy adoption more affordable for businesses. Currently, it covers 30% of the total cost of installing a solar system—including equipment, labor, and even necessary electrical upgrades.
For instance, if your solar project costs $500,000, the ITC immediately reduces your federal tax liability by $150,000. This is before considering additional savings from depreciation and local incentives. Notably, the Inflation Reduction Act of 2022 restored the ITC to its original 30% rate, enhancing its appeal to businesses.
For businesses that lease their space or lack upfront capital, Power Purchase Agreements (PPAs) offer a pathway to solar adoption with zero out-of-pocket costs, while still benefiting from lower electricity rates.
This isn’t a loophole—it’s a well-established federal program designed to make solar more accessible and financially viable for businesses. However, it’s important to note that government incentives can change, so what’s currently available may not last long.
How Much Can Your Business Actually Save?
The biggest mistake businesses make when considering solar is only looking at the upfront cost. The real financial benefit isn’t just in tax savings—it’s in how much you’re not paying to the utility company over the next two or three decades.
Take Helluva Container, a packaging company in Elk Point, South Dakota. They installed a 36.9 kW rooftop system at their office and an 85.5 kW system at their warehouse. After combining tax credits, grants, and other incentives, their payback period was just 0.9 years. That means in less than 12 months, their solar investment had already paid for itself—and now, they’re generating free electricity for decades.
For most businesses, solar delivers savings in three key ways:
- Upfront Tax Savings:
- 30% ITC credit immediately lowers tax liability.
- Bonus depreciation allows you to deduct most of the remaining costs in year one.
- Lower Operating Costs:
- Cuts electricity bills by 50-80%—meaning thousands in savings every year.
- Protects against future utility rate hikes, which are only going up.
- Increased Property Value & Energy Independence:
- Solar-equipped buildings appraise higher.
- Businesses become less reliant on unpredictable energy markets.
And here’s the kicker: Businesses that wait will keep paying their utility company more every year, while those that invest in solar lock in long-term energy savings.
Who Qualifies & How to Claim the Commercial Solar Tax Credit?
Any business, industrial facility, warehouse, farm, or commercial property owner installing solar qualifies for the Commercial Solar Tax Credit. Even nonprofits, schools, and government buildings can benefit through direct pay provisions, which allow them to receive the tax credit as a cash payment.
Filing for the credit is straightforward:
- Work with a Tax Professional – A CPA or solar tax expert ensures maximum deductions and proper tax structuring.
- File IRS Form 3468 – This form is submitted with your annual business tax return to claim the 30% credit.
- Explore Financing Options – Businesses that don’t want to pay upfront can use solar loans, leases, or PPAs to start saving immediately.
Every state has different incentives, rebates, and tax structures, and missing out on available savings means leaving money on the table. At Artisun Solar, we handle all the details—from identifying the best local and federal incentives to ensuring the entire process runs smoothly. Our team stays on top of every tax credit, grant, and financing option, so your business gets the best possible return on investment.
Why Acting Now Matters
The 30% ITC is locked in through 2032, but government incentives change all the time. Future reductions are possible, and businesses that delay could lose access to bonus depreciation and additional incentives.
Think about it this way: Every month you wait, you’re overpaying on your energy bills. While your competitors are reducing operating costs and securing predictable energy pricing, you’re at the mercy of utility rate hikes with no end in sight.
That’s why the best time to act is now. The businesses that move forward lock in their tax savings, slash energy costs, and increase their bottom line. Those who wait? They keep paying more for electricity with no return.
Take Control of Your Energy Costs & Tax Savings
The Commercial Solar Tax Credit (ITC) is one of the best financial tools available to businesses today. When paired with bonus depreciation, state incentives, and lower utility bills, the ROI becomes impossible to ignore.
But here’s the deal: government incentives change. The 30% ITC is locked in until 2032, but waiting too long could mean missing out on bonus depreciation, local rebates, or other financial benefits. Meanwhile, energy costs aren’t slowing down. Every month your business isn’t generating its own power, you’re paying more to the utility company—with no return.
This isn’t a decision to push down the road. The businesses that act now will see the biggest savings—those that wait will keep paying more with no end in sight.
If your business wants to:
- Slash energy expenses by 50-80%
- Take advantage of 30% tax credits & additional incentives
- Stop overpaying the utility company
- Lock in predictable energy costs for the next 25+ years
Then now is the time to act.
At Artisun Solar, we help businesses take full advantage of the ITC, bonus depreciation, and state incentives to maximize their savings. Our team will handle everything—from system design to tax credit filing—to make the process seamless.
Want to see how much your business can save?
Request Your Free Solar Assessment Today.
Learn more by checking out our Guide To Solar Savings: Understanding the ROI and Benefits of Commercial Solar Energy
