Updated Commercial & Industrial Solar Incentives: How to Save on Energy and Taxes in 2026-2027

For commercial, industrial, and small businesses, managing energy costs while improving long-term financial stability is more important than ever. Federal and rural incentives for solar and energy storage have recently been updated, making this a timely moment to evaluate how solar can help reduce operating expenses, lower tax liability, and strengthen your sustainability reputation.

Here’s an updated overview of the incentives available to businesses planning solar projects in 2026 and 2027 — including key deadlines and what they mean for your organization. This guide reflects the latest program updates and incentive rules (post 2025 OBBB Act) and is designed to help businesses make informed decisions that are relevant for the near future.

1. Federal Investment Tax Credit (ITC) – 30%

The Investment Tax Credit (ITC) remains one of the most impactful federal incentives for commercial solar and battery storage.

Businesses can claim 30% of the total project cost as a dollar-for-dollar credit against federal taxes.

Key timing rules for 2026:

• Projects must begin construction by July 4, 2026, or
   
• If started later, be placed in service by December 31, 2027, to qualify at the current level.
   

This credit applies to both solar and standalone batteries, offering flexibility for businesses seeking energy savings or improved resilience.

Source: IRS – Form 3468
https://www.irs.gov/forms-pubs/about-form-3468

2. Bonus Depreciation — Accelerated First-Year Tax Benefits

Commercial solar projects are eligible for accelerated depreciation under MACRS, including bonus depreciation.

After claiming the federal Investment Tax Credit (which reduces the depreciable basis by half of the ITC value), the remaining adjusted basis may be largely depreciated in the first year using bonus depreciation. Under current law, this often allows businesses to depreciate approximately 80–85% of the system’s total cost in year one.

The actual tax savings depend on the business’s tax rate, but the combination of the ITC and accelerated depreciation can significantly reduce taxable income in the first year, creating strong early cash-flow benefits and shortening the effective payback period—particularly for small and mid-sized businesses.

3. Additional ITC Adders: Domestic Content & Energy Community Bonuses

Some projects may qualify for extra tax credits:

Domestic Content Bonus (+10%)

Available for systems that use:

• 100% U.S.-made steel and iron
   
• At least 40% U.S.-manufactured components
   

Energy Community Bonus (+10–20%)

Eligible if the project is located in:

• A brownfield site
   
• A region with historical fossil-fuel employment or above-average unemployment
   
• Certain census tracts linked to closed coal mines or retired coal plants
   
• Low-income or community-benefit project areas (20% credit available)
   

4. Rural Businesses: USDA REAP Grants & Loans

Rural businesses may qualify for additional financial support through the USDA Rural Energy for America Program (REAP).

REAP benefits include:

• Grants covering 25% of the solar project cost
   
• Loan guarantees to reduce financing barriers
   
• Quarterly funding rounds until the program’s allocation is fully utilized
   

Many areas are considered rural even outside traditional expectations, making this program relevant for a wide range of businesses.

Eligibility Map & Program Information:
https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency

5. Long-Term Financial Benefits Beyond Incentives

Solar provides value beyond tax credits:

Lower Operating Costs

Solar reduces monthly utility expenses and helps businesses better manage operational budgets. Some companies also benefit from optimized utility rate plans when paired with solar production.

Property Value

Solar is a tangible asset that can increase property value. Studies show that commercial buildings with renewable energy systems can sell at a premium compared to those without — a factor often overlooked when assessing ROI.

Strategic Sustainability

With supply chains, customers, and investors placing greater emphasis on sustainability, adopting solar reinforces a business’s reputation for forward-thinking and responsible operations.

Why Now Is a Strong Time to Consider Solar

Businesses across Georgia and nationwide are facing rising energy costs, unpredictable utility pricing, and increasing pressure from customers and investors to demonstrate sustainability. Investing in solar now allows organizations to:

• Lock in current federal incentives before they expire, including ITC and bonus depreciation
   
• Access additional credit adders for domestic content and energy community projects
   
• Leverage USDA REAP support if located in rural areas
   
• Begin benefiting from lower energy costs immediately. Every day you wait, you continue paying your utility for energy that your business could be generating itself. Installing solar today lets you start saving now while building predictable long-term financial and operational benefits.

Why Businesses Choose AES

AES combines engineering expertise, hands-on installation experience, and a customer-first approach to deliver solar solutions that create real value for businesses across Georgia. What sets AES apart is our ability to design and deliver custom solar systems for large-scale commercial and industrial projects as well as small businesses, ensuring every solution aligns with your energy needs, financial priorities, and sustainability goals.

What Makes AES Different:

• All-In-House Expertise: From design to installation and ongoing maintenance, our fully in-house team handles every aspect of your project—no middlemen. This allows us to provide real-time support, answer technical questions, and ensure consistent quality.
   
• Proven Experience Across Sectors: With 18 years in solar and over 850 systems installed, AES serves residential, commercial, government, and nonprofit clients. Our team develops custom solutions for every facility, no matter the size or complexity.
   
• Accredited & Recognized: AES is a 2025 Top Solar Contractor, featuring dual NABCEP-certified installers, Journeyman Wireman and Master Electricians, and a certified in-house engineering team. We are the only Georgia provider consistently serving residential, commercial, and government clients since 2014, and our work has been featured in AJC, WSJ, and NPR.
   
• Local & Growing: Based in Athens with a satellite office in Savannah, AES offers close, hands-on support. Having all professionals in-house allows us to provide ongoing maintenance and monitoring, ensuring your system performs efficiently for decades.
   
• Reliable Guarantees: Most systems are backed by a 25-year workmanship and power production warranty, giving you confidence in your investment.
   
• Value-Driven Results: AES focuses on delivering the highest value at the lowest cost, helping businesses save anywhere from $100 to $100,000 on monthly energy bills, depending on their system size and energy needs.
   

AES can provide a no-obligation assessment of your facility, financial incentives, and custom system options — giving you a clear picture of what solar can realistically do for your business, now and in the coming years.

Contact AES today to explore how solar can support your facility, budget, and long-term sustainability goals.