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While the residential 25D ITC is gone, the Section 48/48E commercial ITC is still active at 30% base with bonus adders pushing to 50%+. Combined with MACRS depreciation (20% bonus in 2026) and 1:1 NEB credits, Maine commercial solar delivers strong ROI. FEOC deadline: July 4, 2026.
30-50%+
Commercial ITC
20%
Bonus Depreciation
$1.10-$2.55/W
Commercial Pricing
Jul 4, 2026
FEOC Deadline
The commercial solar Investment Tax Credit is a dollar-for-dollar reduction in federal tax liability. The base rate is 30% for projects meeting prevailing wage and apprenticeship requirements, with bonus adders that can push the effective credit to 50% or higher.
Available to all commercial solar projects meeting prevailing wage and apprenticeship requirements.
Additional 10% for projects using sufficient US-manufactured components (steel, iron, manufactured products).
Additional 10% for projects in brownfields, coal closure areas, or communities with high fossil fuel employment. Multiple Maine areas qualify.
+10% for projects in low-income census tracts or on Indian land. +20% for qualified low-income residential building projects or economic benefit projects.
Base ITC (30%): $99,000
+ Domestic Content (10%): $33,000
+ Energy Community (10%): $33,000
Total ITC (50%): $165,000
Net cost after ITC: $165,000
MACRS depreciation value: ~$43,000
Effective net cost: ~$122,000
After July 4, 2026, projects using components from Foreign Entities of Concern may not qualify for the full ITC. Maine businesses should begin construction or demonstrate safe harbor before this deadline.
| System Tier | Price Range | Typical | Size Range | Total Cost |
|---|---|---|---|---|
| Small Commercial (25-100 kW) | $1.80-$2.55/W | ~$2.15/W | 25-100 kW | $45K-$255K |
| Mid-Size Commercial (100-500 kW) | $1.40-$1.90/W | ~$1.65/W | 100-500 kW | $140K-$950K |
| Large Commercial (500+ kW) | $1.10-$1.50/W | ~$1.30/W | 500+ kW | $550K+ |
In addition to the ITC, businesses can depreciate solar equipment over 5 years under MACRS. In 2026, a 20% bonus depreciation allows accelerated first-year deductions. Note that the depreciable basis is reduced by half the ITC amount.
| Period | Standard MACRS | 2026 Bonus | Combined |
|---|---|---|---|
| Year 1 | 20% | 20% bonus | 40% of cost basis |
| Years 2-5 | ~12%/yr each | Standard MACRS | Remaining 60% |
| Total (5 years) | 100% | Fully depreciated | 100% of cost basis |
Bonus depreciation was 100% in 2022, dropped to 80% in 2023, 60% in 2024, 40% in 2025, and is 20% in 2026. It drops to 0% in 2027. This makes 2026 the last year with any bonus depreciation advantage for commercial solar.
Maine commercial solar systems receive the same 1:1 NEB (Net Energy Billing) credits as residential rooftop systems. Excess generation is credited at the full retail rate.
The FEOC deadline is July 4, 2026. Start your commercial solar project now to maximize ITC benefits and MACRS depreciation.