The Commercial Solar Credit Is Running Out. Is Your Building Ready?
New commercial solar projects must be in service by December 31, 2027 to qualify for the federal tax credit. Find out if your California building fits a system of 50 kW or larger with a free commercial energy review.
- 50 kW and upBuilt for larger California buildings
- Roof, ground or carportUse the space your property has
- 10 years in California solarEd reviews it, the Mars team builds it
What should California building owners know about commercial solar?
If you own a California warehouse, farm, office or other large property, start with these three answers.
Is commercial solar worth it in California?
Yes, for many larger buildings. High California business electric rates make solar valuable, and the federal credit deadline makes timing matter.
How big does a commercial solar system need to be?
Our commercial program starts at 50 kilowatts, or roughly 120 panels. Rooftops, open ground and parking lot carports can all work.
Who installs commercial solar near me in California?
Solar With Watts reviews your building and bills. The Mars commercial team then handles design, permits, installation and utility interconnection.
Why do California business electric bills cost so much?
Many California business bills charge for how much power you use and how fast you use it. That second charge is called a demand charge.
On PG&E's B-10 business rate, summer energy runs about 34 cents per kWh from 4 to 9 p.m. Off-peak energy runs about 25 cents. Demand charges are added on top. SCE's TOU-GS-2 plan for businesses from 20 to 200 kW also includes demand charges.
That means two buildings can use the same energy and pay very different bills. A short spike from compressors, pumps or HVAC can raise the cost for the whole month.
| Bill item | What it means | What can help |
|---|---|---|
| Energy charge | The price of each kWh you use. It usually costs more during peak hours. | Solar replaces part of the power you buy from the utility. |
| Demand charge | A charge based on your highest power draw. On PG&E B-10, that is your highest 15-minute average each month. | A battery can trim short spikes. Results depend on your load pattern. |
| Exported solar | Extra solar sent to the grid. Net billing credits are usually below retail rates in PG&E, SCE and SDG&E territory. | Size the system to your load, and consider storage. See our NEM 3.0 guide. |
What one spike can cost
A building that peaks at 300 kW on PG&E B-10 would owe about $6,150 in demand charges for a summer month, before energy charges. Your free energy review starts with your own bills.
Example only: 300 kW × $20.50 per kW, secondary voltage summer rate effective March 1, 2026. Your rate, voltage and bill will differ.When does the commercial solar tax credit end?
New commercial solar projects must be in service by December 31, 2027 to qualify. That date applies to solar projects that did not start construction by July 4, 2026.
In service means the system is installed and ready to operate. Signing a contract by the deadline is not enough. Design, permits, equipment and utility interconnection all need time, so larger projects should start early. The IRS notice sets out both dates.
| Date | What it means for your project |
|---|---|
| July 4, 2026 | This construction-start date has passed, so new solar projects now fall under the in-service deadline. |
| December 31, 2027 | New solar projects must be in service by this date to qualify for the credit. |
| Construction after 2025 | Equipment sourcing rules apply. IRS guidance limits certain foreign-sourced content. |
Projects under 1 MW
Projects under 1 MW AC can qualify for a 30 percent rate, according to the IRS. Your tax professional should confirm your project.
Nonprofits and churches
Tax-exempt organizations and governments may be able to claim the credit through elective pay, even without a tax bill.
Battery storage
Federal rules give battery storage a longer timeline than solar. Equipment sourcing rules still apply, so check storage with your project team.
Which California buildings are a good fit for commercial solar?
The best fits have steady power use and enough space for at least 50 kW. That space can be a roof, open land or a parking lot.
Warehouses and industrial
Large roofs and daytime equipment can line up well with solar. Forklift charging, compressors and refrigeration may also make a battery worth reviewing.
Often a fit for: rooftop solar and storage
Farms and wineries
Pumps, cold storage and processing can create big loads. Open land may leave room for a system without touching your buildings.
Often a fit for: ground mount solar
Retail and offices
Parking lots can make power and give customers shade. If you own a multi-tenant property, we will look at how your meters and leases are set up.
Often a fit for: solar carports or rooftop solar
Churches, schools and nonprofits
Large roofs and parking lots can reduce a major operating cost. Boards and committees often need clear numbers, so we start with your actual bills.
Often a fit for: rooftop solar or solar carports
You may be ready for a review if:
- You own the property, or the owner is on board
- You have a large roof, open land or parking lot
- Your electric bills are a major operating cost
- You can share 12 months of utility bills
Building new?
Mars works with commercial and multi-family builders early, including on California's Title 24 solar and battery requirements. Bring us in during planning, before electrical plans are final.
How can a California business pay for commercial solar?
Commercial financing is reviewed case by case. Select power purchase agreements and bank financing may be available, depending on your project and your business.
| Option | How it works | Who owns the system | Good to know |
|---|---|---|---|
| Bank financing | A lender finances the project, and you repay it over time. | Usually your business | Terms depend on the lender, your project and your credit. |
| Select power purchase agreements | A third party owns the system, and you pay for the power it produces. | The third-party owner | Available on select projects. The owner generally handles the tax credit. |
How does a commercial solar project work?
It starts with your bills, not a sales pitch. Ed reviews your building first. If it looks like a fit, the Mars commercial team takes the project from design through installation.
Send your details
Share your property, utility and monthly bill range.
Ed reviews the fit
Ed checks the fit, then asks for 12 months of bills if 50 kW or more looks possible.
Mars reviews your site
The Mars commercial team looks at your site, goals and payment options.
Design and permits
Mars handles design, engineering, procurement and permitting.
Install and connect
Mars installs the system and manages utility interconnection.
Built for working sites
Mars coordinates with other teams and trades on commercial projects. It also runs an internal quality control program with its own safety protocols and training.
How do I get a free commercial energy review?
Fill out the short form with your property details. There's no cost, and you don't need your bills yet.
What happens next
- Ed reviews your property details.
- If 50 kW or more looks possible, Ed asks for 12 months of bills.
- The Mars commercial team reviews your site, goals and payment options.
What do California businesses ask about commercial solar?
What size commercial solar system do you work on?
Our commercial program starts at 50 kilowatts, or roughly 120 panels. Send your property details, and Ed will review whether your site fits.
When does the commercial solar tax credit end?
New commercial solar projects must be in service by December 31, 2027 to qualify. That applies to solar projects that did not start construction by July 4, 2026.
Is signing a contract before the deadline enough?
No. A new project generally must be in service by the deadline, and signing alone does not meet that test. Design, permits, equipment and interconnection all take time, so start early.
Can churches, schools and nonprofits benefit from the tax credit?
They may be able to. Tax-exempt groups and governments may qualify through elective pay, even without a tax bill. Check your project with your tax professional.
Do you offer solar carports?
Yes. Solar carports can turn a parking lot into a power source and give people covered parking. They can make sense when your roof is full, older or hard to use.
Can solar go on the ground instead of my roof?
Yes, where the site allows it. Ground mount can work for farms, wineries and properties with open land. Soil, trenching distance and land use plans all matter.
Will solar lower my demand charges?
Not always. Solar lowers the energy you buy, but demand charges depend on your highest power draw. A battery can trim short spikes, depending on your load pattern.
How can I pay for a commercial solar system?
You can pay cash, use bank financing or, on select projects, use a power purchase agreement. Financing is reviewed case by case, based on your project and your business.
Do I need to own the building?
The property owner needs to be involved. If you lease your space, the owner would need to approve the project. Tell us your situation on the form.
What happens to extra solar power?
Extra solar goes to the grid, and credits are usually below retail rates in PG&E, SCE and SDG&E territory. That is why sizing and storage matter.
Do I need my utility bills to start?
No. Start with the short form. If 50 kilowatts or more looks possible, Ed will ask for 12 months of utility bills.
Who installs commercial solar projects?
The Mars commercial team handles design, permits, installation and utility interconnection. Solar With Watts reviews your building and bills first.
Is your building ready before the credit runs out?
Start with a free commercial energy review. Find out if your roof, land or parking lot fits a system of 50 kW or larger.
Looking for solar for your home? Try the Solar Panel Estimator or the Powerwall Calculator.