Option 01
Cash purchase
Full ownership from day one. Highest lifetime ROI. Federal ITC + depreciation flow directly to your books.
Best for: profitable businesses with tax appetite
Financing
Four structures. The MACRS math. The NJ SREC table.
Cash, loan, PPA, or C-PACE — plus federal ITC, accelerated depreciation, and 15-year NJ SuSI revenue. Everything a CFO needs to evaluate a commercial solar investment before involving their CPA. Illustrative numbers — every proposal we deliver is CPA-aligned to your tax position.
Decision tree
Two questions narrow it down to the right structure.
Question 01
Can your business directly use the federal ITC + depreciation?
→ Yes
Cash, Loan, or C-PACE
You should own the system. Pick based on capital preference.
→ No
PPA / Lease
A third-party sponsor monetizes the tax benefits. You get the savings.
Question 02
Do you want capital deployed in solar, or somewhere else?
→ Yes
Cash purchase
Maximum lifetime ROI. Best for profitable, tax-paying businesses.
→ No
Solar Loan or C-PACE
Ownership benefits without the capex line.
The four structures
Each has a clear best-fit profile.
These aren't proprietary products — they're industry-standard structures we'll explain plainly. The right answer depends on whether you can absorb the federal ITC, your appetite for capex, and your real-estate strategy.
Option 02
Solar loan
Own the system, finance over 5–25 years. Many loans cash-flow positive from month one. Keep the ITC + depreciation.
Best for: businesses that want ownership without the capex
Option 03
PPA / Lease
We own and operate the system. You pay only for the electricity it produces — typically 20–40% below utility rates. Zero capex.
Best for: non-profits, schools, and tax-limited entities
Option 04
C-PACE
Property-assessed clean energy financing in eligible states. Long-term, transferable, off-balance-sheet for many corporate buyers.
Best for: real estate owners in C-PACE markets
MACRS depreciation
How it works for commercial solar — in four steps.
Commercial solar PV is 5-year MACRS property under current IRS schedules. Paired with the federal ITC, the depreciation tax shield is the second major tax-benefit leg of any commercial project — and it's the part most installers skip past. Here's the mechanics in four steps a CFO can quote at a board meeting.
Reliant is a solar contractor, not a CPA. Specific depreciation outcomes depend on current IRS schedules and your tax position — every proposal we deliver is intended for confirmation with your tax advisor.
01
30% ITC
Calculate the ITC
The federal Investment Tax Credit on a commercial solar project is currently 30% of total project cost — a direct dollar-for-dollar reduction of your federal tax liability in year one. (Subject to current IRS schedules and your CPA's confirmation.)
02
−15% basis
Apply the half-basis reduction
Per IRC §50(c)(3), the depreciable basis of the solar asset is reduced by half the ITC claimed — so if you took a 30% ITC, the basis you depreciate is project cost minus 15%. This is the 'half-basis adjustment' a CFO will want to see modeled.
03
First-year deduction
Take first-year bonus depreciation
Solar PV is 5-year MACRS property. Accelerated depreciation benefits may allow significant first-year tax deductions on the reduced basis, with the remainder spread across the MACRS schedule. The exact bonus percentage is set by current IRS schedules and is subject to CPA review.
04
Years 1–6
MACRS the remaining basis
Whatever depreciable basis remains after the first-year deduction is recovered on the standard 5-year MACRS half-year-convention schedule (20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%). The full depreciation tax shield depends on your marginal federal + state rate.
Worked example · $1M commercial project · 2026 rules
How the math actually pencils on a $1M project.
All numbers are illustrative. Specific outcomes depend on your tax position, marginal rate, and current IRS schedules — they're intended for CPA confirmation before any capital deployment decision.
Step 1
Project cost
Turnkey commercial solar project — engineering, panels, inverters, racking, electrical, install, and commissioning.
$1,000,000
Step 2
Federal ITC (30%)
Direct credit against year-one federal tax liability. Reduces taxes owed dollar-for-dollar.
$300,000
Step 3
Basis reduction (½ of ITC)
Per IRC §50(c)(3), the depreciable basis is reduced by half the ITC taken. $1.0M − $150K = $850K depreciable basis.
$150,000
Step 4
Depreciable basis
The amount eligible for accelerated and MACRS depreciation deductions over the 5-year MACRS schedule.
$850,000
Step 5
First-year bonus depreciation
Accelerated depreciation benefits may allow significant first-year tax deductions on the depreciable basis, subject to current IRS schedules and CPA review.
~$170,000
Step 6
Remaining basis (years 1–6 MACRS)
Recovered on the standard 5-year MACRS half-year-convention schedule. Tax shield value depends on your marginal rate.
~$680,000
Year-one tax benefit (illustrative)
~56% of project cost recovered in year-one tax benefits.
Federal ITC + first-year depreciation tax shield combined. The remaining MACRS schedule continues to generate deductions through years 2–6. Exact realized value depends on your marginal rate and tax appetite — subject to CPA review.
$565K
on $1M project
Accelerated depreciation benefits may allow significant first-year tax deductions, subject to current IRS schedules and CPA review. Reliant's proposal team will work directly with your CPA to confirm exact applicable percentages and marginal-rate impact before you deploy capital.
What commercial clients care about most
Four buyer priorities. Five proposal sections.
Across hundreds of commercial conversations, the same four questions get asked first. We've built every proposal Reliant delivers around answering them with hard numbers — so a CFO can review it once, hand it to their CPA, and bring a board-ready answer back inside a week.
01
Tax credits
How much is the federal ITC actually worth on this exact project, this exact tax year? We model it with your CPA's marginal-rate assumptions, not generic numbers.
02
First-year deductions
How much depreciation lands in year one vs. spreads over MACRS years 2–6? The first-year number is what a CFO presents to the board.
03
Cash flow
Will the system be cash-flow positive from month one with our financing structure? We layer loan / PPA / C-PACE payments against utility savings and SREC revenue.
04
ROI + payback
Year of payback (typically 4–6 yr commercial), 25-year IRR, and lifetime ROI. The three numbers that survive every board-room conversation.
Inside every proposal
Five sections — built to be CPA-ready.
Hand it to your accountant. The numbers are framed exactly the way they'd want to see them.
01
Federal ITC modeled
30% credit applied to total project cost, with CPA-aligned assumptions on your year-one tax appetite.
02
MACRS depreciation modeled
5-year MACRS schedule applied to the half-basis-reduced amount. Year-by-year deduction broken out.
03
Bonus depreciation modeled
First-year accelerated depreciation, framed per current IRS schedules, subject to CPA review.
04
Utility savings
12-month bill analysis × system production model × utility-rate escalator. Net displaced kWh × current $/kWh.
05
Total tax impact + 25-yr NPV
Year-one cash benefit, payback year, lifetime IRR, and discounted 25-year project value — one summary page.
+ facility-specific addenda
(utility tariff, off-taker structure, AHJ + utility timeline)
(utility tariff, off-taker structure, AHJ + utility timeline)
NJ SREC market
NJ SuSI / SREC-II — locked-in revenue for 15 years.
The New Jersey Board of Public Utilities runs the Successor Solar Incentive (SuSI) program. Every MWh of solar production earns an SREC-II certificate worth a fixed price for 15 years — the most valuable state-level solar incentive in the country, paired with federal benefits. Public-entity projects (schools, hospitals, municipal) get an additional $20/MWh adder.
Worked example · 1 MW NJ rooftop
~$112,500 / yr × 15 yr ≈ $1.69M
A 1 MW small-non-residential rooftop in NJ produces roughly 1,250 MWh per year. At the current $90/MWh SREC-II value, that's locked-in revenue for the full 15-year program term — paid on top of utility-bill savings and the federal ITC + depreciation stack.
System size
1 MW rooftop
Annual production
~1,250 MWh / yr
SREC-II value
$90 / MWh (SREC-II)
Annual SREC revenue
~$112,500 / yr
Term
15 years
Total contract value
~$1.69M over 15 yr
| Market segment | Size range | SREC-II value | Public-entity value | Notes |
|---|---|---|---|---|
| Net Metered Residential | All sizes | $90 / MWh | — | Behind-the-meter rooftop on owner-occupied homes. 15-year fixed-price term, paid per MWh of production. |
| Small Non-Res Rooftop / Carport / Canopy / Floating | < 1 MW | $100 / MWh | $120 / MWh | Commercial rooftops, parking-lot canopies, carports, and floating-solar arrays under 1 MW. Highest ADI tier — BPU's built-environment preference. |
| Large Non-Res Rooftop / Carport / Canopy / Floating | 1 MW – 5 MW | $90 / MWh | $110 / MWh | Larger commercial rooftop, canopy, carport, and floating-solar arrays. |
| Small Non-Res Ground Mount | < 1 MW | $85 / MWh | $105 / MWh | Sub-1-MW ground-mount on commercial, industrial, or agricultural parcels. |
| Large Non-Res Ground Mount | 1 MW – 5 MW | $80 / MWh | $100 / MWh | Larger commercial ground-mount on private parcels — typically agricultural or industrial. |
| Community Solar — LMI | Up to 5 MW | $90 / MWh | — | Subscriber-supported community solar projects serving low- and moderate-income households. |
| Community Solar — Non-LMI | Up to 5 MW | $70 / MWh | — | Subscriber-supported community solar projects awarded under the Community Solar Energy Program (non-LMI track). |
| Interim Subsection (t) | All sizes | $100 / MWh | — | Interim category for grid-supply projects on properly closed sanitary landfills, brownfields, or areas of historic fill. |
Source: NJ Board of Public Utilities (BPU) Successor Solar Incentive program schedule. Values fixed for 15-year term once an SREC-II registration is approved. Adders for public entities apply per BPU rule. Reliant confirms current applicable values during proposal — the BPU updates the schedule periodically.
Incentive layers
Multiple programs stack on most commercial projects.
For NJ commercial projects, the federal ITC and accelerated depreciation typically combine for a meaningful year-one tax benefit. SREC-II revenue layers in over the 15-year program term, and net metering offsets utility cost on every kWh consumed. Exact stacking varies by tax position and project geometry — subject to CPA review.
01
ITC
Federal Investment Tax Credit
30%+ of project cost, U.S. nationwide
02
MACRS
Modified Accelerated Cost Recovery
Bonus depreciation, businesses w/ tax appetite
03
SREC
Solar Renewable Energy Credits
NJ, PA, MD, MA, OH, DC markets
04
NY-Sun
NYSERDA NY-Sun
New York commercial incentive
05
C-PACE
Commercial PACE Financing
Available in eligible states
06
REAP
USDA Rural Energy for America Program
Agricultural & rural businesses
Get your model
Send us your bills. We'll send back the math.
12 months of utility bills + facility address. We'll model all four financing structures + every applicable incentive program — framed for direct hand-off to your CPA. Side-by-side comparison delivered in 2–4 business days.