- February 25, 2026
You may have recently opened an electricity bill and gotten sticker shock. You are not alone!
If your organization is even remotely considering onsite solar, two critical federal deadlines could determine whether your project qualifies for 30–50% in tax incentives.
If solar is even a future consideration, this is a good time to evaluate feasibility while incentives remain available.
Why Is Solar So Popular?
There are two main reasons that you see so many solar panels being installed:
Rising Electricity Costs
With the introduction of AI and the resulting construction of data centers, demand for electricity is at an all-time high and is projected to increase even further.
At the same time, we are struggling as a nation to build enough electricity generation to meet the power demands of these data centers.
What does that mean for you? Higher power prices, especially during times of peak demand for electricity (typically 10 a.m. to 4 p.m.).
This problem isn’t going away and is projected to get worse.
The benefit of solar power is that it generates the most electricity at the very times when demand and prices are typically highest. Organizations that install onsite solar avoid using grid electricity during periods of higher demand, which can significantly lower electricity costs and help avoid future increases in your bill.
Financial Incentives
There are extremely attractive federal tax incentives for solar. These incentives are in the form of tax credits that can pay for between 30 and 50% of the costs of your solar project. Nonprofits can also participate by receiving a one-time payment instead of tax credits.
Also, some states have solar rebate programs that can add to these tax incentives to make onsite solar extremely affordable.
In many areas, this means a solar project can pay for itself in as little as three years.
Third-party ownership is also an option. Under this structure, a solar provider installs and maintains the panels, captures tax incentives and rebates, and passes the savings along in the form of lower electricity costs. In many cases, this can be accomplished with no upfront cost.
So What is Changing?
Unfortunately, one of the incentives for solar energy is about to go away.
The One Big Beautiful Bill that was passed by Congress in 2025 sunsets the federal tax credits currently available for solar energy.
There are two important deadlines to understand:
July 4, 2026
Begin Construction Deadline
For smaller projects, these still qualify for the federal tax credits if payment of at least 5% of the project cost is paid by this date.
For larger projects, qualifications may occur if physical work of a significant nature has started by this date. Work must continue in accordance with IRS guidance.
For organizations considering solar, starting your review and approval process NOW is the best way to ensure eligibility for these tax credits.
December 31, 2027
Placed in Service Deadline
If you fail to meet the July 4, 2026, deadline, projects can still qualify for the federal tax credit if your system is placed into service before the end of 2027.
This includes securing an interconnection agreement with your utility, which can be a lengthy and sometimes cumbersome process depending on the utility.
Even if a project cannot begin construction by July 2026, there may still be a pathway to qualify before incentives expire.
Please note: Under current rules, you only need to meet one of these deadlines to receive the tax credit, not both!
What Should You Do Now?
If you haven’t explored solar energy and the savings that it can offer, a good first step is to get a solar feasibility study completed for your site.
A feasibility study will determine:
- Whether your site is a good fit for solar
- How much solar your site can hold
- Estimated savings and payback
- Qualification timelines
A third-party feasibility study can be especially valuable. Too often, installers’ studies rely on optimistic assumptions. Remember, installers are incentivized to sell solar.
To request a complimentary solar feasibility study and start your solar journey, contact our team at:
solarRFP@naniaenergy.com
These deadlines are approaching quickly. Acting now can save you hundreds of thousands of dollars in both project costs and utility savings.
