Massachusetts electric customers who receive solar bill credits will soon have a new option to address accumulated excess credits. On June 1, the Department of Public Utilities (DPU) issued a Hearing Officer Memorandum under docket 25-117. In it, the Department accepts the electric utilities’ proposed solution to address the customers who have accumulated excess bill credits: a one-time transfer of excess credits and the ability to re-allocate future credits to other Accounts. The electric utilities will offer this to affected customers during the period between July 1 and the end of 2026.
Who does this affect?
This proposal will be available to electricity customers served by Eversource, National Grid, and Unitil.
What does it do?
If you subscribe as an offtaker of bill credits from a solar farm, and you find yourself amassing a negative balance on your electric bills, you can take action to allocate negative balances to other Accounts and re-allocate percentages of your subscription to other Accounts going forward.
When can this happen?
Applications are expected to open in July 2026 and run through December 2026.
Where do I sign up?
The utilities have not yet published a communication beyond the DPU proceedings. We will update this alert when details become available, and you can sign up for notices at the DPU website: Dashboard-Mass DPU Fileroom. Enter Docket #25-117.
Can we cash out our credits and receive a payment for our accumulated balance?
A cash-out option is not available.
We’ve signed on for more credit value than we need. What are our options?
Solect can help you understand your bill credit profile against total electric spend across your accounts and meters. Some options that have worked well include:
Forecast before you act. Project your electric use and anticipated spend, typically driven by electrification projects like switching heating systems, and by increases in electric vehicle charging. Perhaps your bill credits don’t need to be re-assigned after all!
Put credits to work on building efficiency. improvements. Use accumulated bill credits to pay for energy efficiency upgrades offered by your utility.
Re-assign a portion of your credits. Find another qualified offtaker to step in and take a portion of bill credits going forward. Save them money, save yourself the hassle. This is the “structural fix.”
If you schedule a bill credit review with us, we can help you understand your options. Use the button below to schedule your review.
Many organizations focus on how much electricity they use, but when they use it can be just as important. Understanding peak demand and taking steps to manage it can help organizations reduce energy expenses, improve operational efficiency, and maximize the value of their solar and energy storage projects.
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.
Federal solar tax credit policy entered Phase 2 in 2026, creating two different timelines for commercial solar projects depending on when they are contracted.
Key Takeaways for Property Owners
The federal Investment Tax Credit (ITC) for solar, 48E, entered Phase 2 of its policy sunset on January 1, 2026, but qualifying projects may still preserve the full 30% tax credit through Safe Harbor provisions.
Projects contracted on or before July 4, 2026 may be placed in service as late as December 31, 2030.
Projects contracted after July 4, 2026 must be placed in service by December 31, 2027, creating a significantly shorter development timeline.
These timing rules apply across all financial structures, including power purchase agreements (PPAs), solar site leases, and direct ownership.
Why Contract Timing Now Matters More for Solar Projects
For most of the past two decades, the federal ITC 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.
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.
As a result, project timing now has a more direct influence on how solar projects are planned, priced, and executed.
Solar ITC Phases 2 and 3 Project Timelines
Under current federal policy, the timeline for completing a commercial solar project depends on when the project contract is executed relative to the July 4, 2026 Safe Harbor threshold.
CONTRACT TIMING
ITC OUTCOME
COMPLETION TIMELINE
On or before July 4, 2026 (Phase 2)
Full 30% ITC if Safe Harbor requirements met
Placed in service through December 31, 2030
After July 4, 2026 (Phase 3)
Some projects can still qualify for the ITC
Placed in service by December 31, 2027
For commercial property owners, the difference between these timelines does not eliminate opportunity, but it does influence development flexibility, pricing assumptions, and overall execution risk. Developers that actively track federal policy changes and proactively address equipment sourcing can help translate these timelines into practical project strategies.
How Interconnection Queues Affect Solar Project Timing
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.
Contract Timing and Solar Project Economics
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.
Power Purchase Agreements (PPAs)
When projects retain full ITC value and benefit from longer development timelines, developers can typically offer more competitive long-term electricity pricing under a PPA. When development timelines are shorter, project risk increases. This may be reflected in:
Higher electricity pricing
Adjusted escalation assumptions
More selective site requirements
Solar Site Leases
When developers have confidence in tax credit eligibility and development timelines, they have greater flexibility to offer higher lease income. Shorter timelines can reduce that flexibility and limit the number of sites that support viable project economics.
Direct Ownership
For property owners purchasing solar systems directly, retaining the ITC can reduce project cost by 30 percent, significantly improving payback periods and long-term financial returns. When development timelines are shorter, delays related to permitting, interconnection, or equipment availability can have a greater impact on financial outcomes.
These development considerations are closely tied to Safe Harbor rules, equipment sourcing requirements, and evolving federal compliance standards.
Safe Harbor, Equipment Sourcing, and FEOC Compliance: Why Preparation Matters
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.
How Equipment Sourcing Is Becoming More Important
Beginning in 2026, federal Foreign Entity of Concern (FEOC) rules introduce additional requirements related to where certain solar equipment and components are sourced. 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. The IRS recently released guidance outlining how these requirements apply to projects claiming it.
For property owners, this means equipment sourcing has become more than a procurement detail. It now plays a role in whether projects can realistically meet eligibility timelines and maintain expected financial outcomes. Developers must have visibility into compliant supply chains and access to ITC-eligible equipment.
Why Early Preparation Helps Reduce Risk
Because Safe Harbor and FEOC requirements affect both projecttiming and equipment sourcing, projects that begin planning earlier retain greater flexibility in development schedules.
Investors and some developers have taken steps to secure supply contracts for compliant equipment and establish procurement strategies that support ITC eligibility. For property owners evaluating solar today, it is increasingly important to work with developers that not only understand evolving policy and supply-chain requirements, but also have the financial resources and procurement capability to secure contracts for ITC-eligible equipment. Developers 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.
What Property Owners Should Evaluate Before Starting a Solar Project
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.
Evaluate building readiness
Roof condition, available square footage, electrical infrastructure, and long-term ownership plans influence whether a building is a strong candidate for solar. Buildings with newer roofs, sufficient space, and stable long-term ownership typically move through development more smoothly.
Assess interconnection and hosting capacity
Local grid conditions influence whether a project can connect to the utility system and how quickly development can proceed. An early interconnection review helps determine whether sufficient hosting capacity exists and whether interconnection timelines align with ITC eligibility requirements.
Understand internal decision timelines
Capital planning, procurement reviews, and board approvals often take longer than expected. Understanding these internal timelines early helps ensure projects can move forward within available incentive deadlines.
These factors are typically evaluated early in the development process to determine whether a site is well positioned to move forward.
A Narrower Window, But Still a Clear Opportunity
The federal ITC landscape is evolving, but it has not disappeared. For commercial property owners considering solar in 2026 and beyond, the key question is no longer simply whether incentives remain available. It is how project timing, site readiness, and development planning align with the current policy landscape. Some projects may benefit from moving forward sooner to preserve Safe Harbor flexibility, while others may still proceed successfully under the shorter timelines that follow.
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.
Property owners interested in evaluating solar opportunities can schedule a consultation to better understand site feasibility, development timelines, and available project structures under the evolving ITC framework.
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.
Commercial real estate owners increasingly focus on maximizing asset performance by driving net operating income (NOI) and positioning properties to remain competitive as market conditions evolve. One opportunity gaining traction is converting unused rooftop space into a long-term revenue stream through a solar site lease.
Rooftop Solar Site Lease — At a Glance
Investment required: None
Revenue source: Lease payments from a solar developer
Typical lease term: 20–25 years
Impact on NOI: Increases NOI with predictable, long-term income
Upfront payment option: Available in some cases for roof or capital improvements
Ownership & operations: System owned, operated, and maintained by the developer
Ideal building size: 30,000+ square feet of usable roof space
Best-fit property types: Industrial, warehouse, flex, distribution, large retail
Effect on tenants: Minimal disruption; no impact on interior space
Property sale: Lease is typically transferable to a new owner
What Is a Rooftop Solar Site Lease?
A rooftop solar site lease is a third-party ownership arrangement. In this model, a solar developer leases roof space from a building owner and then finances, builds, owns, and operates a solar array on that roof for its full useful life which is typically 20 to 25 years. The property owner continues to own and operate the building as usual, while receiving lease payments for the rooftop space. The solar developer assumes responsibility for all aspects of the system, from design and construction through long-term operation and maintenance.
From a commercial real estate perspective, solar functions much like a long-term tenant occupying space that would otherwise generate no income.
What Is the Investment Required?
None. Under a rooftop solar site lease, there is no upfront capital investment required from the property owner. The solar developer covers all project costs, including engineering, permitting, construction, interconnection, and monitoring and maintenance.
For owners seeking new revenue streams without deploying capital or increasing operating complexity, this structure offers a rare combination: predictable income with no balance sheet impact.
Solar as the Ideal Long-Term Tenant
When evaluated using traditional commercial real estate criteria, a rooftop solar tenant performs exceptionally well:
Lease terms typically span 20–25 years
Lease payments are predictable and contractually defined
The system occupies unused roof space only
There is no impact on interior square footage, parking, or tenant operations
No turnover risk and no tenant management issues
In an unpredictable leasing environment, few tenants offer this level of stability.
NOI Impact and Long-Term Asset Value
Rooftop solar lease payments directly increase NOI, which can enhance asset value depending on capitalization assumptions. Because the income stream is long-term and contractual, it is often viewed as low-risk and high-quality revenue. For portfolio owners, rooftop solar site leases can improve property-level cash flow, diversify income sources, and enhance appeal to buyers and lenders seeking stable returns. Importantly, solar revenue is additive. It does not interfere with existing leases or future tenant strategies
Why Timing Matters for Rooftop Solar Leases
Recent changes to federal solar incentives have altered the flexibility of project timelines. To qualify for the full 30% Investment Tax Credit (ITC) and secure the most favorable lease terms, timing is now a critical factor. Under current “Safe Harbor” provisions, projects that are contracted before July 4, 2026, can benefit from an extended development window, with a “placed-in-service” deadline as late as December 31, 2030. In contrast, projects contracted after July 4, 2026 must be operational by the end of 2027 to qualify. Later contracting does not eliminate opportunity, but it reduces flexibility.
What Property Owners Are Saying
We chose Solect due to their approach to understanding our commercial property management needs and leveraged their solar expertise to deliver a clean energy solution aligned with our operational and financial requirements.
— Doug Freeman, Principal, Capital Group Properties
Which Properties Are Best Suited for Rooftop Solar?
While each site is evaluated individually, strong candidates typically include:
30,000+ square feet of usable roof space
Structurally sound roofs with sufficient remaining life
Industrial, warehouse, flex, distribution, or large retail properties
Long-term site control and stable ownership
Many owners are surprised to learn that rooftops already meeting these criteria can generate meaningful revenue with minimal effort.
Upfront Lease Payments for Capital Improvements
In some cases, rooftop solar site leases can include an upfront lease payment, paid at the beginning of the contract term. This upfront revenue may be used to offset roof replacement or repairs, address deferred maintenance, or fund capital improvements that increase tenant appeal
In effect, the solar tenant can contribute to improving the building before the system is installed, aligning the project with long-term asset needs.
Leasing Your Rooftop to Solect Energy
Solect Energy works with commercial property owners across the Northeast to transform underutilized rooftops into reliable, long-term revenue-generating assets.
Solect manages the full process—from feasibility and engineering through financing, construction, interconnection, and long-term operations. This allows building owners to benefit from solar without taking on risk or complexity.
For owners looking to improve asset performance, a rooftop solar site lease offers a straightforward opportunity: a dependable tenant, predictable income, and no capital investment.
Does Your Rooftop Qualify for a Solar Site Lease?
Schedule a brief conversation to find out. 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.
When evaluating your facilities, these are the key characteristics Solect looks for. Together, they help determine whether a commercial or municipal property is ready to support a long-term solar project.
General Site Requirements
The property owner (or authorized representative) must be willing and able to enter into a solar contract.
The building, parking lot, or land should be expected to remain in place for at least 20 years.
The site should receive direct sunlight for most of the day throughout the year.
The property should have access to 3-phase electric service, which is needed for most commercial-scale systems.
Roofs
At least 15,000 square feet of available roof area.
At least 20 years of useful life remaining, with a valid manufacturer’s warranty.
Sufficient structural capacity to support the additional weight of solar equipment.
Parking Lots
At least 25,000 square feet of open surface area.
No underground or below-grade conditions that would prevent installation of canopy foundations.
Ground Sites
At least 100,000 square feet of available area.
Land that is not forested, in agricultural use, or of ecological importance.
Outside of designated wetland buffers (typically 50–100 feet).
Previously developed sites and brownfields can be strong candidates.
Energy Storage (Optional)
Best suited for facilities with:
Demand greater than 500 kW
Time-of-use electric meters
Ground area available to install pad-mounted storage equipment
👉 This checklist is a starting point. Solect works with customers to review each property in detail, identify the best candidates, and align projects with long-term capital and sustainability plans.
Taking advantage of upfront incentives from government and utility programs, municipalities in the Northeast are rapidly adopting electric technologies for buildings and transportation, reducing their dependence on fossil fuels.
Is your solar system keeping up with your energy goals? If not, repowering—replacing inverters or solar panels—might be a smart move. Read on for 6 compelling reasons to consider it.
By Matt Shortsleeve, SVP of Marketing & Policy, Solect Energy
With more than 15 years of experience building solar and storage projects across Massachusetts and the Northeast, Solect has seen the energy landscape evolve through growth, challenges, and transition. SMART 3.0 marks a truly positive turning point — a comprehensive effort to revitalize the solar market by accelerating deployment and delivering long-term economic value to project participants and the state’s economy.
With their ongoing commitment to sustainability, universities and colleges set ambitious goals to reduce their carbon footprints. This path to decarbonization requires a significant shift towards electrification which is the replacement of technologies that directly use fossil fuels (like natural gas, oil, and coal) with those that use electricity. Therefore, electrification is a key step in phasing out fossil fuel dependence.
Generous incentives still available, technological advancements, soaring electricity costs, and ambitious sustainability goals are driving widespread adoption of solar photovoltaic technology, with solar arrays being installed on parking lots, farms, and even lakes.
Taking advantage of upfront incentives from government and utility programs, businesses in the Northeast are rapidly adopting electric technologies for buildings, industrial processes, and vehicle fleets, reducing their dependence on fossil fuels. This shift—primarily driven by the need to enhance operational efficiencies, achieve sustainability goals, and comply with evolving regulations—is transforming how companies approach capital planning and energy consumption. Despite the reduced upfront costs and promises of technological advancements, this growing reliance on electricity can lead to huge increases in operational expenditures (OPEX) due to ‘double trouble.’ This article explores the concept of ‘double trouble’ and shows how strategic implementations of solar and energy storage solutions can help control these costs while enhancing the sustainability benefits of electrification.
On July 4, 2025, the President signed the One Big Beautiful Bill Act into law—a far-reaching piece of legislation that reshapes America’s 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.
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.
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.
Earlier this year, the Public Utilities Regulatory Authority (PURA) approved updates to the Non-Residential Renewable Energy Solutions (NRES) program, a statewide, six-year solar program that supports Connecticut’s goal of carbon-free electricity by 2040.
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.
The recently passed Inflation Reduction Act of 2022 (the “Act”) has generated a lot of buzz – and rightly so. This is a nearly $400 billion legislative package that expands tax incentives and discounts for solar, energy storage, and other renewable energy resources.
The recent signing of the Inflation Reduction Act (IRA) of 2022 has generated both excitement and confusion for businesses and property owners. There are 730 pages of dense legalese on a range of topics, with various provisions, that require further guidance by the U.S. Department of Treasury.
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