For commercial property owners, rooftop solar isn’t just about energy savings—it’s about financial strategy. In 2025, federal and state tax incentives are creating some of the strongest returns ever seen in clean energy. Depreciation rules, bonus credits, and stacking opportunities can help building owners reduce tax liability while increasing cash flow.
Plankton Energy structures every project to take full advantage of these programs—whether through ownership, site lease, or Power Purchase Agreements (PPAs). Here’s what every property owner needs to know.
The Federal Investment Tax Credit (ITC)
The ITC remains the cornerstone of solar finance. In 2025, it provides a baseline 30% tax credit on total system cost for qualifying commercial properties.
Who qualifies:
• Direct purchasers of solar systems
What’s covered:
• Equipment costs
• Labor and permitting
• Interconnection, engineering, and all soft costs
Site leases and PPAs capture this value on the back end through Plankton, while direct buyers apply the credit to reduce their tax liability.
Bonus ITC Adders in 2025
The Inflation Reduction Act enables “adders” on top of the 30% ITC:
+10% for Domestic Content – Projects using U.S.-manufactured panels and racking
+10% for Energy Communities – Fossil fuel transition zones designated by the DOE
+10% for Low-Income Property Owners – When solar benefits LMI tenants or facilities
These adders can bring the total tax credit to 70% or more. Plankton models each project to assess eligibility and maximize value.
MACRS Depreciation: Accelerated ROI
Commercial solar systems qualify for accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS).
Key benefits:
• 5-year depreciation schedule
When paired with the ITC, MACRS can bring payback periods down to just 3–6 years. This front-loaded savings model is ideal for CFOs targeting stronger EBITDA and net operating income (NOI).
Learn more about how Plankton structures financing for optimal ROI.
Incentive Changes Are Underway: What CRE Owners Should Know
Following the passage of new federal legislation, significant changes to clean energy tax policy—including the ITC and MACRS depreciation—are now taking effect. While some provisions are still being implemented, it’s clear that the full value of today’s incentives will begin phasing down.
For commercial property owners exploring solar, 2026 presents the final opportunities to access the current tax credit and depreciation benefits before new federal limits are enforced.
Plankton Energy is monitoring these changes closely. We’re here to help you understand how evolving policy may affect your asset strategy—whether through ownership, lease, or structured PPA.
How to Capture These Benefits
Whether you own your building or lease your rooftop, Plankton will structure the most advantageous path:
Lower electricity costs (PPA)
Annual lease revenue (site lease)
Direct depreciation and tax credits (ownership)
Modeled returns across all three
We deliver a turnkey solar system—built around financial clarity.
Expert Takeaways
- The ITC offers 30–50%+ tax credits
- MACRS depreciation accelerates ROI
- State-level programs stack additional savings
- Plankton delivers turnkey modeling across all structures
2025 may be the final year to lock in full incentives - Even non-owners benefit via structured pass-throughs
Ready to Understand Your Solar Opportunities?
Whether you want to own your system, lease your roof, or evaluate the impact of upcoming policy shifts, Plankton Energy will provide a tailored, model-driven roadmap to maximize your returns.
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