Safe harbor provision
What is it, and what it mean for your organization.
What is changing in 2026?
Eligibility for the Investment Tax Credit (ITC) rules are changing
In order to be eligible for the tax credits, you can only have a limited percentage of products from Foreign Entities of Concern (FEOC), and there is currently a lack of guidance about how those rules will work.
The requirements for the 10% domestic content adder will become more expensive and difficult to achieve because the domestic content percentage required increases from 45% to 50%.
What’s at stake?
30-50% tax credits and protection against upcoming cost increases and stricter sourcing rules that will make qualifying for these solar tax credits far more challenging.
Effective January 1, 2026, a larger share of your commercial project’s solar components will need to be made in the U.S., while also excluding materials sourced from certain countries like China and Russia. While it’s true that more solar manufacturers are moving towards domestic production and sourcing, and we fully support American manufacturing and the jobs it creates, we also know it will take time for the U.S. industry to scale up.
Section Styles rounded-corners
What is the Safe Harbor Provision?
A provision in the legislation called Safe Harbor allows businesses, nonprofits, municipalities and organizations to make a smaller, upfront investment before the end of 2025 that will lock in the current tax credits while still being able to complete their commercial installation as late as 2027.
Why is the Safe Harbor Provision important?
By Safe Harboring your commercial solar project before Dec 31, 2025, you can lock in 30-50% tax credits and protect against upcoming cost increases and stricter sourcing rules that will make qualifying for these solar tax credits far more challenging... Even a small 5-7% deposit or interest-only loan secures these credits for commercial installations through 2027 – making early action a smart way to strengthen your bottom line while investing in clean energy!
Section Styles rounded-corners
What steps do I need to take to secure the Safe Harbor Provision?
Reach out today and talk to a Commercial Energy Consultant to learn how we can help guide you through this process. From answering questions, to free, custom proposals and quotes, to understanding finance options – our team is here to help you Safe Harbor your project.
Invest in your organization while lowering your utility bills, reducing your carbon footprint, gaining energy independence, and strengthening your community’s power grid!
Take a look at some of our client stories…
System Logistics - Vertique in Arden, NC is a leading global supplier of innovative intralogistics and material handling solutions. Their installation of over 600 rooftop solar panels is projected to save them over $30,000 a year on their electricity costs. Hear directly from the team at System Logistics - Vertique in this video documenting their journey.
Asheville Jewish Community Center installed a 76.3 kW rooftop system - bringing clean energy to a campus rooted in community care and environmental stewardship. Guided by the Jewish principle of Tikkun Olam (“repair of the world”), the JCC now powers its programs and preschool with the sun. We sat down to interview Executive Director Ashley Lasher, who shared the motivations behind the project, and why they chose to go solar with Sugar Hollow Solar.