Although electricity rates are lower in summer, you might notice a steady rise in your energy bills all thanks to demand charges, which are proportional to your energy usage during peak demand. Read on to delve deeper into demand charges and learn how to manage them effectively.
For most of the past two decades, the Federal Investment Tax Credit (ITC) has helped make solar a straightforward financial decision for commercial property owners. Incentives were stable, and project timelines were relatively flexible. That environment has changed. With the solar tax credit now in Phase 2, the timing of when a project is contracted plays a larger role in project economics, development timelines, and execution risk. Here are the key Fed ITC takeaways for property owners.
Solar projects remain viable across multiple financial structures, including PPAs, solar site leases, and direct ownership. Projects contracted on or before July 4, 2026 can benefit from a longer development timeline, allowing more time to complete permitting, interconnection, financing, and construction. Projects contracted after July 4, 2026 can still move forward successfully when key conditions are already in place, such as a rooftop ready for installation, available grid interconnection capacity, and access to ITC-eligible equipment. However, when those factors require additional time to address, contracting before July 4 can reduce investment risk by allowing projects more time to be completed.
Here’s how project timing now has a more direct influence on the planning, pricing, and execution of solar projects.
| Phase 2 Contract on or before July 4, 2026 | Phase 3 Contract after July 4, 2026 | |
|---|---|---|
| ITC Outcome |
Full 30% ITC
If Safe Harbor requirements are met
|
ITC may still apply
Some projects can still qualify
|
| Completion Deadline |
Placed in service through
December 31, 2030
|
Placed in service by
December 31, 2027
|
| Development Window |
Up to ~4.5 years
More flexibility for complex projects
|
~18 months or less
Tighter execution timeline
|
Beyond tax credit timelines, another important factor is access to available grid hosting capacity.
Solar projects must secure approval from the electric utility before connecting to the grid. In many regions, interconnection queues have grown as more projects seek access to available grid capacity. When an interconnection application is submitted, the project is placed in the utility’s queue for review and approval. Projects that contract earlier can submit interconnection applications sooner, improving the likelihood of securing available capacity and reducing the risk of development delays.
For commercial property owners, this means contract timing influences how quickly a project can realistically move from development to being placed in service.
ITC has long been a major driver of solar project economics. As the incentive structure evolves, timing becomes a more significant factor in how projects are structured and priced.
Developers can typically offer more competitive long-term electricity pricing under a PPA.
Project risk increases and may be reflected in:
Developers have greater flexibility to offer higher lease income to property owners.
Shorter timelines can reduce that flexibility and limit the number of sites that support viable project economics.
Delays from permitting, interconnection, or equipment availability can have a greater impact on financial outcomes.
What Safe Harbor Means for Solar Projects
Safe Harbor provisions allow solar projects to preserve eligibility for the ITC if a portion of project costs—typically at least 5 percent of total project value—is incurred before the applicable deadline and the project meets required placed-in-service timing and compliance conditions. This allows projects to retain tax credit eligibility even if construction and commissioning occur later, with qualifying projects able to be placed in service as late as December 31, 2030.
Beginning in 2026, federal Foreign Entity of Concern (FEOC) rules introduce additional requirements regarding the source of certain solar equipment and components. Under these regulations, solar equipment manufactured by entities classified as Foreign Entities of Concern, or supplied by companies owned by Prohibited Foreign Entities, may not qualify for the ITC (refer to IRS guidance for further details).
As a result, for property owners, equipment sourcing now affects project eligibility timelines and expected financial outcomes. It makes it increasingly important for developers to have visibility into compliant supply chains and access to ITC-eligible equipment.
Why early preparation helps reduce risk
As Safe Harbor and FEOC requirements affect both project timing and equipment sourcing, projects that begin planning earlier retain greater flexibility in development schedules.
Investors and some developers have already taken steps to secure supply contracts for compliant equipment and establish procurement strategies that support ITC eligibility. Developers like Solect, with established supply relationships and the balance-sheet capacity to secure compliant equipment, are better positioned to maintain project timelines and preserve expected financial outcomes.
For commercial and institutional decision-makers, the most productive next steps are strategic rather than transactional. An initial evaluation can quickly determine whether a building is a strong candidate for solar.
Federal solar incentives are evolving, but they remain available for projects that align with current timelines. Solect Energy has secured supply contracts for ITC-compliant equipment through 2030. With these resources, Solect works with property owners across both timelines and advises clients on strategies aligned with their building conditions, project goals, and development schedules.
To explore solar for your property, schedule a consultation.
Call 508-598-3511, email info@solect.com, or use the button below. It could be one of the best financial decisions you make today.
Check Solar Feasibility
As the solar landscape continues to expand across the Northeast, there’s never been a better time to explore collaborative opportunities and contribute to the broader growth of the renewable energy industry.
Solect Energy, a leading commercial solar and energy storage developer in the Northeast, has been delivering solar solutions—from PV to EV—for a wide range of commercial sectors, including C&I, CRE, municipalities, nonprofits, and beyond.
If you own or manage a portfolio of commercial properties and are considering solar, connect with our team to assess your solar potential. If your business operates in the renewable energy sector and you’re exploring collaborative opportunities, we’d love to meet you as well. Our Strategic Partner Services create meaningful value for our partners and the communities we serve. Either way, we look forward to an engaging conversation with you at the upcoming RE Plus Northeast!!
Our team will be at the event to share insights and expertise on a range of topics, including the following and beyond:
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Join Team Solect at the Annual Members Meeting and Fall Fête—a vibrant evening of engaging conversations, networking, knowledge-sharing, and camaraderie. We’re excited to connect with industry peers, partners, and long-standing friends as we come together to discuss innovative strategies for advancing the green revolution and accelerating the region’s journey toward carbon neutrality. Let’s celebrate progress, collaboration, and the future of sustainable energy!
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Join Solect Energy SVP Scott Howe as he brings his extensive expertise in renewable energy to the 2024 NEREJ Annual Western MA / Connecticut CRE State of the Market Summit. With a career defined by innovation and leadership in the energy sector, Scott will share valuable insights that shape the future of commercial real estate across the Northeast.
The summit will tackle key issues affecting the Western MA and CT CRE landscape, with a special focus on transactions, regional projects, and financing strategies. Critical topics like sustainability, energy transition, and increasing power demand will also be explored, along with solutions to environmental challenges.
Don’t miss this opportunity to gain expert knowledge from one of the industry’s leading voices.
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Catch Solect SVPs Alex Keally and Matt Shortsleeve at the GridTECH Connect Forum Northeast this month as they discuss interconnection and advancing clean energy goals!
Despite New England’s progress toward 100% renewable energy, several key challenges remain, including the intermittent nature of wind and solar, limited space for large-scale projects, and increasingly severe weather conditions. The region needs to modernize its grid to integrate distributed energy resources, manage peak demand, and address the growing “duck curve”, while inconsistent policies and regulations across states continue to hinder advancement. This conference provides a valuable platform for insightful discussions on these critical issues and more.
Use promo code SPKGUEST for $50 off registration. Let’s drive the future of clean energy together!
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Join Team Solect at this exciting event focused on Opportunity Zones, new housing developments, transportation, infrastructure enhancement, and the future of the Metro South region. It features a panel discussion driven by regional leaders from organizations like MassDOT, Bridgewater State University, the Citizens’ Housing and Planning Association (CHAPA), the Brockton Area Transit Authority, and more.
Don’t miss this opportunity for an engaging discussion over a complimentary breakfast, followed by a networking session to connect with industry veterans and thought leaders.
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Join Team Solect and discover exciting career opportunities in the fast-growing renewable energy industry. Learn how you can make a meaningful impact by contributing to the advancement of green energy and driving the world toward a sustainable, greener future. Let’s work together to shape tomorrow’s energy landscape!
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Thursday, Aug 15th, 2024, 10:00 am – 10:30 am | Free
USDA REAP funding is at an all-time high, with 95% of Maine and New Hampshire qualifying as eligible areas—and the best part is agricultural use isn’t required.
Join our free webinar to learn the key steps to secure a USDA REAP grant, including eligibility, application scoring, and timelines. We’ll also cover additional federal and state incentives to help further reduce your project costs.
Gain insights from Solect’s experienced team–featuring senior directors Andrew Hickok and
Ted Rioux–and optimize your chances of success. Don’t miss out on this opportunity for significant funding—register today!
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
With the commercial real estate industry evolving at an unprecedented pace, join us at the 8th Annual Northern New England CRE Summit to explore the key driving forces defining the industry’s present and future.
Solect senior executives, Scott Howe and Ted Rioux will be there to meet with you at the summit and offer their extensive industry insights on the importance of solar adoption highlighting its environmental benefits and the significant savings potential it offers for your CRE business in today’s market.
Additionally, the summit brings together some of the industry’s top leaders to discuss a range of critical issues including the following:
As one of the Northeast’s leading commercial solar developers, Solect Energy specializes in designing and developing solar and bettery energy storage systems tailored to meet our customers’ unique needs, challenges, and savings objectives. Explore our diverse portfolio to see some of the significant projects we’ve developed for some of the region’s leading CRE brands.
Visit our table for in-depth discussions with our team over a complimentary breakfast buffet.
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Controlling energy expenses has become a pressing challenge in today’s business landscape. With energy consumption rising steadily, exploring effective solutions to address its financial impact without further ado is essential. Additionally, amidst the escalating climate crisis, it’s our responsibility to embrace sustainability practices for a healthier and greener future. Thankfully, the answer is simple: solar and battery energy storage systems (BESS).
By harnessing clean energy, your business can bolster savings, advance its sustainability initiatives, foster a cleaner economy, and elevate its brand reputation in the industry.
As a premier commercial solar and energy storage development company in the Northeast, Solect Energy is noted for crafting tailored solar and BESS solutions for businesses, commercial and industrial entities, as well as public and nonprofit organizations, spanning over a decade. Our seasoned team is dedicated to designing the optimal solar and storage solution according to your unique challenges, expectations, energy consumption patterns, available spaces, financial considerations, and more.
Let’s discuss how your business can further improve savings and optimize your sustainability objectives.
For inquiries, please feel free to reach out to us.
Explore the event page for more.
Join us for a dynamic panel discussion hosted by Solect Energy in collaboration with MSEN (MetroWest STEM Education Network), Framingham State University, and MassBay Community College on June 5 at the MassBay Community College campus in Framingham, MA.
As a leading commercial solar developer, Solect Energy is powered by a dedicated team of industry experts and visionary leaders who recognize the critical link between education and the future of our workforce. We are committed to nurturing tomorrow’s professionals with the guidance and training they need to propel advancements in science and technology for years to come.
The panel discussion explores strategies for equipping our students with the skills and expertise necessary to drive sustainable scientific and technical growth crucial for enhancing the clean energy sector further.
Learn more about this event and reserve your spot by clicking here.
But that’s not all – explore the rooftop solar project and solar canopy developed by Solect Energy at the MassBay Community College campus in Framingham, with a combined production capacity of 442 kW. Let’s discuss how embracing solar energy can not only lead to significant cost savings but also make a powerful statement about your commitment to sustainability.
Have questions? write to us at info@solect.com, and we’ll be sure to get back to you promptly.
Solect Energy, one of the leading commercial solar developers in the Northeast, is thrilled to participate in the forthcoming Annual Summit on Maine’s Economy & Climate Change.
At Solect, we deeply understand the pressing need to combat climate change, which inspires our commitment to developing a cleaner, greener, and more sustainable future. By championing the widespread integration of solar energy solutions, we actively contribute to mitigating carbon emissions while empowering our clients to unlock substantial savings and achieve remarkable returns on their solar investments.
Join our team at the upcoming conference and let’s discuss how to implement the necessary changes essential for a greener and cleaner Maine while mitigating the impact of climate change.
Questions? Feel free to write to us at info@solect.com.
Drop us a line here for a one-on-one discussion with Team Solect during or after the event.
The time has never been better to consider solar adoption thanks to a number of stimuli, including the Green School Works grant (that pays K-12 public schools for roof replacement to foster clean energy projects), direct pay, and SMART incentives.
Additionally, it’s crucial to take proactive measures to comply with decarbonization mandates in alignment with the state’s commitment to achieving carbon neutrality by 2050.
Let’s discuss how team Solect can help you optimize your savings and sustainability goals with the ideal solar and energy storage solution.
Come see us at booth 606 and don’t forget to drop your business cards for a chance to win two tickets to Boston Red Sox or Worcester Red Sox games. See you there!
For any questions, drop us a line here.