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Solar incentives
Explore residential ownership concepts and commercial federal credit pathways—using careful language and official resources. Qualification depends on project details and current program rules.
Based in Panama City Beach, Florida. Serving residential solar customers throughout the Southeast and commercial solar customers nationwide.
Residential
State and utility programs vary. Product availability depends on project location. Homeowners should review final agreement terms and consult qualified tax professionals.
Cash purchase and financed ownership structures may allow the homeowner to explore available incentives, subject to eligibility.
Financing availability varies by credit, location, product, and lender requirements. Terms depend on the final agreement.
With a lease, the system owner may claim project incentives. Homeowners should review agreement terms before deciding.
State and utility programs vary widely. Product and program availability depends on project location and current rules.
Lease note
Under a lease or third-party ownership structure, the system owner may claim project incentives. A homeowner under a lease does not personally claim the federal tax credit.
Prefer a residential project path? Explore Residential Solar
Commercial
Projects may qualify for certain categories subject to eligibility. Potential benefits depend on ownership structure, location, documentation, and current program rules. Consult qualified tax and legal professionals.
Eligible businesses may be able to combine federal tax credits, bonus tax credits, depreciation benefits, grants, and long-term electric savings. Qualification depends on project size, equipment, location, labor requirements, business structure, tax liability, program funding, and current regulations.
30%
Qualifying commercial solar and energy-storage projects may be eligible for a federal tax credit equal to 30% of eligible project costs when applicable requirements are satisfied.
Not every visitor or project automatically qualifies. Final eligibility must be confirmed for each customer and project under current program rules. This is not legal or tax advice.
Many qualifying commercial projects may begin with a 30% federal tax credit. Additional 10% tax-credit bonuses may be available based on American-made equipment, project location, and separate program requirements.
+10%
Additional 10% tax credit
Projects using qualifying American-made steel, iron, and manufactured components may receive an additional federal tax credit equal to 10% of eligible project costs.
Example combination
Our standard commercial equipment package is designed to meet applicable domestic-content requirements. Final eligibility depends on the equipment installed, project documentation, certification, and current federal rules. Domestic Content is not guaranteed for every project.
+10%
Additional 10% tax credit
Projects located in a qualifying Energy Community may receive an additional federal tax credit equal to 10% of eligible project costs.
Eligibility is based primarily on the project’s location and current federal Energy Community designations.
Final eligibility depends on project location, documentation, and current federal designations. Not every location qualifies.
This official federal map can help identify whether the project address is located in a designated Energy Community. Final tax-credit eligibility must still be verified.
+10%
Additional 10% tax credit
Certain projects under 5 MW located in a qualifying low-income community may receive an additional federal tax credit equal to 10% of eligible project costs after receiving the required program allocation.
This bonus requires a separate application and allocation. Location alone does not guarantee qualification.
This map can help identify potentially qualifying census tracts. The Low-Income Communities Bonus also requires a separate application and allocation.
When added to a 30% federal tax credit, an additional 10% bonus can increase the total federal tax credit to 40% of eligible project costs.
Bonus tax credits have separate eligibility and documentation requirements. Not every project will qualify for every bonus.
Eligible agricultural producers and rural small businesses may qualify for competitive USDA Rural Energy for America Program funding for renewable-energy projects.
REAP awards depend on eligibility, application quality, available funding, and USDA program rules at the time of application.
Use the USDA Rural Business property eligibility tool to review whether the project location may qualify as rural. Map eligibility alone does not guarantee REAP eligibility or funding.
Qualified commercial solar and energy-storage property may be eligible for accelerated cost recovery through five-year MACRS depreciation.
Depreciation reduces taxable income rather than providing a dollar-for-dollar tax credit. The actual cash value depends on the owner’s tax situation and should be reviewed by a CPA or qualified tax professional.
Review this educational resource from the Solar Energy Industries Association for an overview of MACRS and depreciation treatment for qualifying solar property. Final tax treatment should be reviewed with a qualified CPA or tax professional.
Some commercial solar owners may be able to transfer eligible federal clean-energy tax credits to an unrelated taxpayer in exchange for cash. This can provide an alternative for businesses that cannot fully use the credit themselves.
The business completes an eligible commercial solar project
The project owner determines the available federal tax credit
An eligible third party purchases the transferable credit for cash
The business applies the cash proceeds according to its project and financing strategy
The tax credit is not automatically paid at full face value. Transfer pricing is negotiated between the seller and buyer.
The project owner remains responsible for eligibility, documentation, registration, filing, recapture exposure, and compliance with federal requirements unless otherwise addressed by contract. Federal tax credits may be subject to recapture. Spence Solar and Construction does not purchase tax credits or provide tax or legal advice.
Official resources
These links open official IRS, Treasury, and USDA pages in a new tab. Program rules change—confirm details with qualified professionals.
FAQs
Ownership, guarantees, and where to find official guidance.
Not always. Incentive treatment depends on ownership structure and eligibility. Under a lease, the system owner may claim project incentives rather than the homeowner. Review your agreement and consult a qualified tax professional.
No. Commercial projects may qualify for federal credits, bonus categories, USDA REAP, depreciation benefits, transferability, or elective pay depending on eligibility and current program rules. Nothing on this site guarantees incentive outcomes.
Use the official IRS, Treasury, and USDA resource links on this page. Program rules change, and official sources should guide eligibility research alongside your tax and legal advisors.
Next step
Share your project type and location. We’ll discuss potential pathways without providing tax, legal, accounting, lending, or grant advice.