5 min. read
Our Expert Insights series brings you real-world perspective from our Commercial Markets experts on navigating energy upgrade and transition decisions.
In this segment, our experts discuss why commerical businesses should still consider solar or distributed generation projects, even after the changes coming to the Investment Tax Credit (ITC) under the One Big Beauitful Bill Act (OBBBA).
Watch the full video or read the transcript below.
Q: What is the Investment Tax Credit?
AT: I’m Andrew Trapanese, VP of Development and Engineering for SitelogIQ’s Commercial Markets group.
So, the Investment Tax Credit is a federal subsidy that has come and gone over many years. Most commonly, [it] provides a 30% tax value to solar or energy storage or many types of distributed energy technologies for the total project cost. For so long, the industry has had this federal subsidy, and that’s what’s enabled many projects to come to fruition.
Q: What pressures exist right now around federal tax credits?
CL: My name is Clark Longhurst. I’m the President of the Commercial Markets division for SitelogIQ.
One shift in mindset that I would encourage any business owner or somebody trying to make a decision as it relates to solar renewables is to think about what this might look like long term as opposed to kind of in the next, you know, quarter or several months.
These are things that do take a while to get put into the ground or on the roof, and the sooner that you start, the sooner you reap the benefits.
I think that time is not always our friend and that is certainly the case here with the One Big Beautiful Bill that was legislated last July [of 2025]. We’re moving into an environment that those tax credits are going to be phasing out. Fairly complex how that gets phased out, but just important to know that those programs are going away. We’re looking at somewhere between 30 and 40% of a tax credit towards these projects that will no longer be available after these milestones have been hit.
Q: What trends are impacting power requirements in the U.S.?
AT: I think one of the undervalued dynamics is just the changing macro power dynamic in the United States. We have a load growth environment at a rate that we haven’t seen in the past 20 to 30 years. And what that’s driving is significantly higher energy costs and higher growth rates in energy costs in many markets. Thus the underlying economics, even without the Investment Tax Credit, are really going to improve or change over the course of the next several years.
Q: Will renewable projects still make sense for my business post-ITC?
CL: If we think about the energy space that we’re kind of walking into, all of the demands that are being put on our energy grid right now, renewables will be part of our future for a very long time, whether there’s tax credits to help or not.
When we think about sustainability, when we think about energy costs, when we think about renewables, really there’s no bad time to move forward. The way that the financial metrics work or the way that the mechanics of these projects work is even with no tax incentives, the higher the cost of the power, the better the return on investment. So, I would encourage everybody to not be scared away from pursuing, or at least entertaining, these projects.
Even if there [are] no tax incentives available, there’s also potentially state and local programs that can help augment or offset some of those expiring tax credits as well.
Q: How can SitelogIQ help me strategize and implement my renewables project?
AT: One of the ways SitelogIQ helps its customers is really identifying the right commercial strategy for completing a solar project. Is it for that ownership group to buy and build the projects themselves? Or is it [better] to have a third-party owner through a power purchase agreement or some other third-party structure that enables them to take advantage of the business opportunity, while not necessarily having to outlay the cash to build the project.
Q: What should I do next if I’m considering solar or a renewable project?
CL: If you’re a business who is looking to execute on a renewable strategy, I would recommend moving quickly. The ITC credits are expiring soon and there is still time to get out and make those projects happen prior to those milestones or those expirations.
Waiting may cost more than acting—for some projects, you could experience a loss of 30-50% of the upfront costs.
SitelogIQ is your one-stop partner to help you assess, design, and install energy upgrade projects. We have a dedicated team to help you navigate changes and qualify for tax credits before the impending deadlines.
We support all project phases of energy efficiency, electrification, and renewable solutions. One partner, one source of accountability, one comprehensive strategy—across all properties or locations.
With the OBBBA, time is of the essence. Let’s chat about your energy transition goals and how you can take advantage of incentives that are still available today.