Published On:
January 9, 2025
Last Updated On:
Nov 20, 2025
Comprehensive Incentives for Businesses
Investment Tax Credit (ITC)
The Federal ITC allows for-profit businesses to deduct 30% of the total system cost for solar and energy storage systems (ESS) from their taxes.
The Federal ITC also allows non-profits to receive an actual tax rebate check of 30% of the total system cost for solar and energy storage systems (ESS).
Projects meeting specific requirements can qualify for additional “adders,” up to 10% each for:
Projects in Energy Communities
Low-Income Areas
Domestic Content compliance
The Inflation Reduction Act (IRA) last day of eligibility is December 31st, 2025.
Additional deadline requirements:
Project commitment contract signed no later than December 31st, 2025 - No funds required at this time.
Safe Harbor 5% Project Progress by July 4, 2026 (excluding permitting) - Funding per contract Schedule of Values (SOV)
Project completion with active energy generation - December 31st, 2027
Federal MACRS Bonus Depreciation
Under the Modified Accelerated Cost Recovery System (MACRS), solar and ESS investments can be depreciated over five years.
In 2025, businesses can benefit from 60% bonus depreciation, allowing them to deduct a large portion of the system’s cost in the first year, with the rest depreciated normally.
State 10-Year Straight-Line Depreciation
Businesses can also utilize state depreciation benefits, which divide the equipment cost over its useful life for consistent annual tax deductions.
Self-Generation Incentive Program (SGIP)
California’s SGIP provides rebates for installing energy storage systems, enhancing energy resiliency while lowering costs.
Net Energy Metering (NEM)
NEM allows businesses to sell excess energy back to the grid, offsetting utility costs and providing ongoing savings.
Local and Utility-Specific Incentives
Many utilities in California offer rebates and programs tailored to solar and ESS installations. Contact us to identify programs specific to your location.
Maximize ROI with Option One Solar
1. Tailored Solutions for Commercial Properties
From rooftop arrays to large-scale ESS, we craft systems that meet your energy needs while maximizing incentives.
2. Comprehensive Support
We manage every aspect of your project, from design and permitting to incentive applications and system commissioning.
3. Proven Financial Benefits
With the combination of federal, state, and local incentives, our commercial clients often see payback periods as short as 5.8 years, with lifetime savings exceeding $1.6 million .
