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Commercial Solar Incentives

Tax breaks & government Saving

Commercial Solar Incentives Add Up To Big Savings

Many of the world's most successful businesses are going solar to reduce operating expenses and dramatically improve their yearly balance sheets. For companies like Walmart, Target, and PepsiCo, it's no longer a question of "If" solar will save them money but how much and how quickly.

Despite this growing acceptance, most small and medium-sized business owners are still largely unaware of the numerous incentive programs available to dramatically reduce the costs of installing their solar energy plant.

Below is a quick summary of the most utilized commercial solar incentives. In addition to what's listed below, a few local utilities offer incentive programs of their own that can be added to the options below for even more savings. Our commercial solar team can help you determine what's available in your area. So read on and learn how to offset as much as 50% of a commercial solar purchase.

How Commercial Solar Incentives Work

Federal Solar Investment Tax Credit (ITC)

While residential solar tax credits expired in 2025, valuable commercial solar incentives remain available today. However, recent federal policy changes have introduced stricter construction and project-completion timelines, making early planning increasingly important. Under current guidance, many commercial projects that do not begin development before July 2026 may be required to be fully operational by the end of 2027 in order to qualify for available federal incentives.

State Solar Tax Credits

As of January 1, 2019, the Arizona state tax credit for commercial solar projects has been discontinued by the Arizona legislature. Please contact your state representative for more information.

Commercial solar panels on building

MACRS Investment Depreciation

Every commercial solar system qualifies for the Modified Accelerated Cost Recovery System (MACRS), established in 1986 as a method of depreciation in which a business’s investments are recovered, for tax purposes, over a specified period via annual deductions. Qualifying solar equipment is eligible for a cost recovery period of up to five years.

USDA REAP Grants

The USDA established the Rural Energy for America Program (REAP) grant to assist agricultural producers with renewable energy investments. This REAP grant is available in select rural towns across the country with a population below a certain threshold and covers 25% of a solar investment up to $500,000 for qualifying businesses.

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Help is available for any Arizona business seeking relief from rising energy costs. Contact our commercial solar team to find out what’s available for your business. Act now before these and other incentives expire.

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