If you're evaluating solar for a small business, rental property, or commercial building alongside your home, the rules — and the remaining incentives — are meaningfully different from residential.
The tax credit situation is different for businesses
This is the most important distinction in 2026: the residential 30% credit (Section 25D) expired for homeowner purchases, but the commercial Investment Tax Credit (Section 48/48E) remains available to businesses that own solar equipment — including on rental properties held as a business asset. This is also the mechanism that lets residential leases and PPAs indirectly access a version of the 30% credit, since the leasing company is technically a commercial system owner.
Depreciation is a business-only benefit
Commercial solar owners can typically also claim accelerated depreciation (MACRS) on the system, which residential homeowners cannot access at all. Combined with the ITC, this materially changes the economics for a business owner compared to a homeowner evaluating the identical hardware.
System design differs
Commercial systems are more likely to be ground-mounted or installed on flat commercial roofing (using ballasted racking rather than penetrating mounts), sized to a business's specific demand profile including demand charges that residential customers typically don't face.
Net metering and interconnection rules vary
Many states apply different net metering caps, tariffs, or even entirely separate programs for commercial-scale systems versus residential, and utility interconnection review is often more involved for larger systems that can materially affect local grid infrastructure.
If you're a small business owner
Talk to both a commercial solar installer (not a residential-focused one — the design and permitting process differs) and a tax professional familiar with the current-year Section 48/48E rules and MACRS depreciation schedule, since this remains one of the more favorable solar tax situations left in 2026 despite the residential credit's expiration.
Not financial, tax, or legal advice. Figures on this page are 2026 estimates based on industry aggregator data (EnergySage marketplace medians, SEIA/Wood Mackenzie market insight, and regional installer data) and are provided for general informational and comparison purposes only. Actual pricing, incentive eligibility, and payback periods depend on your specific roof, usage, equipment, and local program rules. Confirm current incentive details at dsireusa.org and consult a licensed tax professional and local installers before making a purchase decision.