Commercial building owners and industrial operators, the federal Investment Tax Credit (ITC) is your chance to save big on solar projects, but the clock is ticking. As of August 2025, you must act now to secure the full 30% tax credit for commercial solar before it shrinks. Battery storage systems also qualify, with a longer window to lock in incentives. Pacifico Energy is ready to help you move fast and maximize your savings. Don’t wait—here’s why August 2025 is your moment to act.
The ITC: Slash Costs and Boost Value
The ITC, under Section 48E of the Internal Revenue Code, covers 30% of the costs for solar panels and battery energy storage systems (BESS) on commercial and industrial properties. Strengthened by the 2022 Inflation Reduction Act, this credit has saved businesses millions, cutting energy bills and boosting property values. Pairing solar with storage lets you store power to manage peak demand, dodge soaring Southern California Edison rates, and tap into grid revenue—all while leading the way in sustainability.
ITC Phase-Out: Solar Deadlines Are Looming
The “One Big Beautiful Bill” (OBBB), signed by President Trump on July 4, 2025, accelerates the ITC phase-out for solar projects. The table below outlines the critical deadlines:
| Timeframe | Action Required | ITC Eligibility |
|---|---|---|
| By July 4, 2026 | Begin construction (spend 5% of project costs or start physical work, e.g., installing panels or foundations) | Full 30% ITC, with four-year safe harbor to complete construction |
| July 5, 2026 – Dec 31, 2026 | Begin construction and place in service by Dec 31, 2027 | Reduced to 18% ITC |
| Jan 1, 2027 – Dec 31, 2027 | Begin construction and place in service by Dec 31, 2027 | Reduced to 6% ITC |
| After Dec 31, 2027 | Begin construction | No ITC for solar projects |
For a $1 million solar project, missing the July 4, 2026, start date could cost you $120,000 (30% vs. 18%), and waiting until 2027 could cost $240,000 (30% vs. 6%). With only 11 months left, August 2025 is your critical window to act.
Battery Storage: A Longer Runway for Savings
Unlike solar, battery energy storage systems under Section 48E remain eligible for the full 30% ITC for projects starting construction by December 31, 2033, per the OBBB. This applies to standalone storage or systems paired with solar, making it a smart way to enhance your project’s value. By acting now, you can combine solar and storage to maximize savings before solar’s ITC fades.
Why August 2025 Is Make-or-Break
It’s August 2025, and delays could push your solar project past the July 4, 2026, deadline, slashing your ITC savings. Southern California’s permitting and interconnection queues are clogged, and equipment lead times are stretching. New “Foreign Entity of Concern” (FEOC) rules under the OBBB require equipment to avoid certain foreign suppliers to qualify for the ITC, demanding immediate planning. A 10% bonus credit (increasing the ITC to 40%) is available for projects starting after June 16, 2025, if they meet a 45% domestic content threshold—another reason to start now.
Industry chatter on X shows businesses racing to launch solar projects to secure the ITC, with storage as a key strategy to future-proof investments. Acting today means:
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- Major Savings: The 30% ITC cuts solar and storage costs, saving thousands on energy bills.
- Higher Property Value: Green upgrades attract tenants and investors.
- Sustainability Edge: Lead as a clean energy champion.
How Pacifico Energy Gets You There
Pacifico Energy has helped businesses like yours secure the ITC and deploy solar and storage projects with speed. In 2024, we installed 27 MW of solar and 25 MWh of storage across Southern California. Here’s how we help you act now:
- Secure the 30% ITC: We’ve guided clients to lock in permitting and interconnection applications before year-end to stay on track. We’ll ensure your solar project starts by July 4, 2026, meeting IRS safe harbor rules.
- Navigate FEOC and Domestic Content: We source compliant equipment to keep your project eligible and target bonus credits.
- No Upfront Costs: Our Energy-as-a-Service model means you pay only for the power you use, with zero CAPEX, while we manage installation and maintenance.
- Fast-Track Execution: From site review to commissioning, we streamline your project to meet deadlines.
- Lock in PPAs: We secure power purchase agreements to shield you from rising utility rates.
August 2025: Your Last Shot at Full Solar ITC Savings
The ITC phase-out is a now-or-never moment for commercial solar. It’s August 2025, and every day you wait risks losing the full 30% tax credit, increasing costs and hurting your ROI. Battery storage offers a longer window, but starting your solar and storage project today maximizes your savings and powers your business with clean energy.
Pacifico Energy is your trusted partner to make it happen. Contact us today at info@pacificoenergy.com or (949) 555-1234 to evaluate your property and start your project before the solar ITC fades. Act now—your savings and sustainability goals depend on it.
Disclaimer: This information is for general guidance only. Consult your tax advisor to confirm ITC eligibility and compliance for your project.
