By Mike Troupos
TL;DR
The first deadline has passed. The July 4, 2026 window to begin construction on solar closed. Projects that started in time are generally still on track for the credit.
If you haven't started, the clock says December 31, 2027. That's the date a new solar project needs to be placed in service to qualify, about 14 months from now.
Battery storage runs on a different clock. The storage credit stays at full value through 2032 before stepping down in 2033 and 2034.
Where your equipment comes from matters now. New supply chain rules took effect in 2026 and can affect whether a project qualifies.
You don't need a big tax bill to benefit. Credits can be sold to another company for cash.
Last July, right after the bill was signed, I wrote about what it meant for the solar Investment Tax Credit. That post got more traffic than almost anything we've published, which tells me a lot of you were trying to figure out your next move. A year later, here's where things stand.
What's changed since last year
The first deadline came and went. Quick refresher on the rule: a solar project qualifies for the credit if it either began construction by July 4, 2026, or gets placed in service by December 31, 2027. The first half of that is now closed.
What counts as "starting" got complicated. In August 2025, the IRS narrowed what counts as beginning construction for most solar projects. In June 2026, a federal court threw that guidance out. If you started a project close to the July deadline, have your tax advisor confirm how your start date holds up.
Supply chain rules kicked in. Starting in 2026, projects face restrictions on equipment and components tied to certain foreign entities. One part from a listed supplier doesn't automatically sink a project. There's a cost-based test, and Treasury has issued interim guidance on how to calculate it. Still, it's now something to document up front, not take for granted. That means knowing where components come from beyond your first-tier supplier, getting sourcing certifications in writing, and keeping those records current. And a cheaper panel or battery isn't cheaper if it puts the credit at risk.
The 2027 deadline, in real terms
Fourteen months sounds like plenty of time. For solar, it usually isn't. A project has to get through feasibility, design, permitting, equipment procurement and utility interconnection before it counts as placed in service. Interconnection alone has been a bottleneck. Last year I noted that most contracts signed in 2025 were for assets coming online in 2027 through 2029.
If onsite solar is on your radar, the decision likely needs to happen in the next few months, not next summer.
What's still on the table
Battery storage. Storage isn't subject to the solar and wind cutoff. Beyond the credit, storage can cut demand charges by shaving your peak usage, and it can keep critical loads running during an outage.
The bonuses. The domestic content and energy community bonuses are still part of the credit structure.
Selling the credit. Credits can be transferred to an unrelated company for cash. That opens the door for businesses that couldn't use the full credit against their own taxes.
What about electricity prices?
Last year I predicted electricity prices would keep climbing faster than inflation. Across the country, prices ave actually accelerated more than last year (Source: https://www.eenews.net/articles/data-centers-drive-76-surge-in-pjm-power-prices/)
Electricity used to be bought, now it needs to be managed. Each year, more industrial clients come to this realization as the cost of electricity represents a growing piece of their COGS.
What to do now
Already started a project? Confirm with your tax advisor that your start-date documentation holds up under the current rules.
Haven't started? Get a feasibility study done this year so you can make a real go or no-go call by early 2027.
Look at storage on its own. Even if solar doesn't pencil out on the 2027 timeline, storage might.
Ask your developer about sourcing. Get written sourcing certifications for panels, inverters and batteries, and loop in your tax advisor before contracts are signed.
Ask about transferability if your company can't use the full credit.
As always, this is a planning overview, not tax advice. Your tax advisor should have the final word on how the rules apply to your project.
Is your organization managing your energy? We can run a complimentary analysis to see if there are cost savings.