Incentives

The stack, explained. Every dollar you are owed.

Most proposals capture some of this. We build the full stack and document it to the standard a tax-credit buyer will require.

Figures and program rules current as of September 2026. Programs change quarterly; we re-verify before every proposal.Not tax advice — confirm eligibility with your own advisor.

Federal investment tax credit (ITC)

30% base

A credit against federal income tax equal to a percentage of the eligible installed cost. For energy storage the full credit is available for projects that begin construction through 2033, stepping down after. For solar, the rules changed in 2025: projects that begin construction after July 4, 2026 must be placed in service by the end of 2027 to qualify, so sequencing matters. We structure the project so the storage component and the solar component each qualify on their own terms.

Domestic content bonus

+10%

An additional credit when a required share of the steel, iron and manufactured components is produced in the United States. Whether a system qualifies depends on the specific equipment — which is one reason we specify equipment for incentives, not off a product line.

Energy community bonus

+10%

An additional credit for projects located in designated energy communities: certain areas with historic fossil-fuel employment, coal-plant closures, or brownfield status. The maps are specific down to the census tract; we check the address.

Accelerated depreciation (MACRS)

5-year schedule

Solar and storage assets can be depreciated on a five-year schedule, with bonus depreciation available in the year placed in service. For an owner with taxable income this is the second-largest piece of the stack after the ITC, and it is the one most proposals leave off the page.

State and utility programs

Varies

State rebates, performance incentives, storage-specific programs and utility demand-response or virtual-power-plant payments. These change quarterly and differ by service territory, so we do not publish rates. We match your building to what is open in your territory at the time we model it, and we date-stamp every figure.

Supply-chain compliance (FEOC)

Required

Since 2026, equipment sourced from prohibited foreign entities can disqualify a project from the credit, with a ten-year recapture risk. Screening equipment for compliance is now part of qualifying for the incentive, not a separate exercise.

What “about half” means in practice

On the representative 150 kW solar + 100 kW battery example used across this site, the federal ITC and accelerated depreciation together are worth about $217,000 against a $425,000 installed cost — roughly half, before any state or utility program and before the domestic-content or energy-community bonuses.

That figure assumes an owner who can use the credit. If you cannot — because of your tax position, or because you are a non-profit or municipality — the credit can still be captured through a PPA or, in some cases, transferred or paid directly. Which route makes sense is a financing question as much as a tax one, and we model them together.

Compare the four financing structures →