How Solar Reduces Overhead and Improves Profit Margins
Adding solar to your business just makes sense with the available tax incentives and depreciation benefits. The goal of any company is to increase its profit margin, and solar helps by decreasing a high overhead cost each month. Solar also brings some ancillary benefits, such as rapid depreciation, which can be used to decrease your tax bill from previous or future years, in addition to the 30% federal Investment Tax Credit (ITC).*
*Please consult a tax advisor on your ability to claim any nonrefundable tax credits.
How Solar Reduces Overhead and Improves Profit Margins
Adding solar to your business just makes sense with the available tax incentives and depreciation benefits. The goal of any company is to increase its profit margin, and solar helps by decreasing a high overhead cost each month. Solar also brings some ancillary benefits, such as rapid depreciation, which can be used to decrease your tax bill from previous or future years, in addition to the 30% federal Investment Tax Credit (ITC).
It’s not just about saving money; customers prefer green businesses!
Combining Federal, State, and Local Incentives for Maximum Value
Switching to solar offers businesses huge financial incentives—but time is running out. The 30% Federal Investment Tax Credit (ITC, Section 48/48E) is still available, but only for projects that begin construction by July 4, 2026. Systems started after that date must be placed in service by December 31, 2027, or they will no longer qualify.
When combined with accelerated depreciation (MACRS), most companies can offset 60–70% of their total system cost through tax incentives alone. That means many commercial solar projects pay for themselves in as little as 3–4 years, with decades of energy savings to follow.
The New York State Energy Research and Development Authority (NYSERDA) offers an upfront rebate to lower the cost of commercial solar installations. The incentive amount depends on system size and installation timing. The sooner you install, the higher the rebate you can receive.
Businesses in NYC can claim a 20% property tax abatement on solar installation costs. This benefit is applied in annual 5% installments over four years, helping to reduce the financial impact of going solar.
The 30% federal tax credit is still available for systems that begin construction by July 4, 2026 and are completed by 2027. Plus, commercial solar customers are able to depreciate their solar systems on their federal and state taxes. These tax incentives are equivalent to 60–70% of the cost of the system, and between the solar savings and tax incentives, customers can get their cost of solar back in anywhere from 4 to 6 years. With its 30-year or more useful life, once your solar system has paid for itself, it will keep saving money for decades to come.
Commercial solar systems qualify for accelerated depreciation (MACRS bonus depreciation), which allows businesses to write off a significant portion of system costs in the first year. In New Jersey, solar projects also generate Solar Renewable Energy Certificates (SRECs) that can be traded for additional income, providing ongoing financial returns.
NYC Commercial Solar & Green Roof Compliance: Local Laws 92, 94 & 97
New York City’s Local Laws 92 and 94, effective since November 15, 2019, require most new commercial buildings, expansions, and major roof replacements to include solar panels, a green roof, or a combination of both, with exemptions only for areas where installation isn’t practical (such as HVAC equipment, access pathways, or shaded sections). Together with Local Law 97 (LL97)—part of the Climate Mobilization Act, which requires large buildings over 25,000 sq. ft. (or combined properties over 50,000 sq. ft.) to reduce greenhouse gas emissions by 40% by 2030 and work toward net zero by 2050—these regulations are designed to advance NYC’s climate goals, expand renewable energy infrastructure, and hold commercial properties accountable for sustainability. While Kamtech Solar does not perform BEAMs compliance calculations, we partner with trusted service providers to help clients navigate requirements while delivering solar solutions that cut emissions and reduce costs.
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