Business Energy Investment Tax Credit (ITC) - 30%
Businesses that install solar photovoltaic (PV) systems are eligible to receive an (ITC) investment tax credit, which can be used to directly offset federal tax liability on a dollar-for-dollar basis. If the tax credit exceeds your tax liability you can roll the credit into future tax periods for 20 years.
The latest legislation established new timelines for commercial solar projects to secure the full 30% ITC.
Begin construction AFTER July 4, 2026: The project must be completed and placed in service by December 31, 2027.
After December 31, 2027: The ITC for commercial solar is eliminated for projects that did not begin construction before July 4, 2026.
Non-taxable entities now have an option for Direct Pay of their ITC.
Focus on Energy Rebate
Focus On Energy Business Customer PV Incentive supports up to $25,000 for commercial properties and up to $35,000 for agricultural producers.
It is available to commercial properties (e.g. any property outside of a 1-3 unit home), and also applies to municipalities, non-profits, and/or any entity on a commercial utility rate structure. This incentive is prescriptive based on size; more specific details can be found on the FOE Business Webpage.
Federal - 100% Bonus Depreciation (Tax Reform Bill)
Systems installed in 2025 and beyond will receive 100% bonus depreciation for property placed in service.
We recommend working with your accountant or financial advisor to maximize this benefit.
Domestic Content
The Inflation Reduction Act (IRA)’s introduction of domestic content was rolled out in 2022 and will remain viable through 2032. Under the IRA, businesses can receive up to 10% off their solar project if their products qualify as ‘domestic content’.
The rules on domestic content are updated frequently. Please reach out to a Business Developer at Arch to learn more about taking advantage of this incentive.
BESS ITC Credit
The federal Investment Tax Credit (ITC) rate for a Battery Energy Storage System (BESS) is 30% for all projects under 1MW.
If the storage system is greater than 1MW, the project starts with a 6% base rate, which can increase to the full 30% rate if the project satisfies prevailing wage and apprenticeship requirements.
BMO Greener Future Financing
- Enjoy a 0.5% rate discount on qualifying term and flex loans
ranging from $100,000 to $500,000. - Get an additional .25% off your loan rate when you set up automatic payments from a BMO business checking account.
- Available to new and existing BMO customers
- Can be added to the 30% federal tax credit
Looking for Residential Solar Incentives?
Our Commercial Partners
