Category: Blog

On July 4, 2025, the President signed the One Big Beautiful Bill Act into law—a far-reaching piece of legislation that reshapes the clean energy landscape. Among its many provisions, the Act begins the phase-out of the federal Investment Tax Credit (ITC) for solar and wind energy projects. Just days later, Executive Order #14315 directed the U.S. Treasury to publish detailed guidance on how the ITC will wind down, including definitions of key terms like “Start of Construction,” “Safe Harbor,” and new limitations on equipment sourced from Foreign Entities of Concern (FEOC).

This represents a significant change—but it’s certainly NOT the end of solar. Far from it.

ITC Is Still Available—and Extremely Valuable

Solar projects currently qualify for 30% federal tax credit—or 40% in designated Energy Communities. Under the new law:

• Projects that start construction before July 4, 2026 have four years to be placed in service to qualify.
• Projects that begin construction after July 4, 2026 must be placed in service by December 31, 2027 to qualify.

This creates a valuable window for businesses and building owners to take advantage of the ITC while it’s still available.

Commercial-scale rooftop solar projects take 6 to 9 months to develop, including system design, interconnection, and permitting. Installation adds another 1 to 3 months. Existing “Safe Harbor” provisions allow an alternative to starting physical construction, with a 5% spend test and continuous development activities to demonstrate the project is proceeding. For projects that may not make the ‘start of construction’ and corresponding ‘placed-in-service’ deadlines, Safe Harbor may preserve the ITC value.

Plus, Bonus Depreciation is back. Businesses can deduct 100% of a project’s depreciable basis in the first year, reducing the payback period for system purchases. 

The Bigger Picture: Rising Costs, Strong State Support

Two forces will continue to drive the value of solar—regardless of changes at the federal level: the rising cost of grid-delivered electricity and strong state incentive programs.

Rising Cost of Grid-Delivered Electricity
Electricity prices are expected to rise as power plants burn more fuels and utilities make major infrastructure upgrades—costs ultimately passed on to ratepayers. Fortunately, behind-the-meter solar provides a unique hedge, helping businesses, schools, and municipalities manage long-term energy expenses and reduce exposure to future rate hikes.

Strong State Incentive Programs
Many states offer generous financial support for solar. Massachusetts’ SMART 3.0, Rhode Island’s Renewable Energy Growth (REG) Program, and New York’s NY-Sun are examples of reliable, well-structured programs designed to accelerate adoption—even when federal benefits are gone.

What’s Next? 

Solect Energy will share updates when Treasury releases guidance, likely by late August. In the meantime, if your building or portfolio of properties is a good candidate for solar, consider looking more closely to understand the potential financial benefits. Solar remains one of the smartest energy investments available.

We believe in the long-term value of solar—and we’re here to help you make the most of it.

By Matt Shortsleeve, SVP of Marketing & Policy, Solect Energy

With over 15 years of experience building solar and storage projects across Massachusetts and the Northeast, Solect has seen the solar landscape evolve through growth, challenges, and transition. SMART 3.0 stands out as a true turning point — a comprehensive effort to revitalize the market, accelerate deployment, and refocus clean energy on economic value and grid reliability.

Are you looking for ways to reduce your organization’s operating costs? As the long, hot days of summer approach, there is one particular hour on one specific day that deserves your attention. That hour is known as peak demand, and your energy consumption during that hour substantially impacts your organization’s energy expenses.

As organizations in the Northeast look for ways to save on energy costs and reduce their carbon footprint, solar energy is increasingly becoming the go-to solution. Despite the generous federal and state incentives, the initial cost of a solar installation can be a perceived barrier for some.

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.

Here’s a Reliable Tenant for You

The commercial real estate industry is in uncharted territory. Hybrid and remote work, layoffs, and volatile interest rates are resulting in historic highs for vacancy rates and ongoing occupancy losses. The struggle to fill empty offices is a national phenomenon.

As emission reduction mandates gain traction in Massachusetts, commercial building owners face growing pressure to adopt sustainable practices. With the implementation of stretch energy codes and net zero opt-in energy codes in communities throughout the state, decarbonization has become mandatory in most places.

Thinking that waiting a few months to begin a solar project doesn’t matter? Think again. In Massachusetts, the solar incentives from the Solar Massachusetts Renewable Target (SMART) program significantly impacts the financial return of a solar project.

For years, savvy businesses in Massachusetts have been transforming their parking areas into assets that reduce costs and generate revenue by installing solar carports. These elevated canopy structures with solar photovoltaic (PV) panels produce clean, renewable energy that can be used on-site or sent back to the grid.

K-12 schools across the United States are switching to solar power to meet their energy needs and sustainability goals. According to data from Generation180, a nonprofit organization promoting clean energy, nearly one in ten public schools now has solar panels, and Connecticut is ranked 8th in the nation for the number of schools with solar.

The Non-Residential Renewable Energy Solutions (NRES) program offers generous solar incentives for Connecticut businesses and property owners to transition to low cost, renewable energy – a proven way to save money on your electric bills, stabilize your electricity rates, or add a new source of revenue.