Comprehensive Incentives for Businesses

Investment Tax Credit (ITC)

The federal ITC allows businesses to deduct 30% of the total system cost for solar and energy storage systems (ESS) from their taxes.

The Inflation Reduction Act (IRA) extends this benefit through 2032 and includes provisions for carryback (3 years) and carryforward (22 years) in case the credit exceeds your tax liability.

Projects meeting specific requirements can qualify for additional “adders,” up to 10% each for:

• Projects in Energy Communities

• Low-Income Areas

• Domestic Content compliance

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 .