This Solutions Spotlight was contributed by VECKTA.
In a total of ten weeks, solar projects for four large distribution centers went from assessment to contract signed, funds wired to the EPC, and equipment purchased and tagged to the project. Millions of dollars in tax credits and energy savings locked in. A big leap forward in carbon-reduction goals. This is what modern solar procurement looks like and what serves the modern market, where incentives and cost levers frequently shift to close and open opportunities.
A major market shift is set to happen over the coming months. The ITC for solar is phasing out, but for projects under 1.5 megawatts AC, the opportunity is still in play. Projects that are safe harbored by July 4, 2026, qualify for the 30-50% credit while gaining four additional years to complete the project.
Projects that miss this deadline must be placed in service by the end of 2027, which is feasible for smaller energy systems, but they’re at the mercy of permitting and interconnection timelines.The companies acting now will succeed in controlling for inevitably rising energy costs, maximizing value for projects that might not pencil without the incentive, and gaining a competitive advantage.
At its base level, the ITC offsets 30% of a project's total cost. This is a dollar-for-dollar credit against a company’s federal tax liability. Layer in Energy Community and Domestic Content bonuses, which offer an additional 10% each, and that figure can realistically climb to 50% of total project costs.
Consider a $2 million solar project. At 30%, that's $600,000 in credits that directly reduce tax liability and are applicable in the year the system becomes operational. And with 100% bonus depreciation now reinstated under the One Big Beautiful Bill Act, companies can depreciate the full asset value in year one, further improving early cash flows. What’s more, there is a market for selling these credits if either the company doesn’t have enough tax liability, has to carry the credits forward for several years, or wants to minimize capital expenditure in the near-term.
For projects that might have looked borderline on a standalone basis, the ITC can compress payback periods by 40-60% and increase Net Present Values by 33-70%. Thus, a so-so project becomes lucrative.
So, we’re facing a July 4 deadline (or a December 31, 2027 deadline). But, the million-dollar question, quite literally, is how does a procurement, facilities, operations, sustainability, you-name-it team meet this deadline?
To properly safe harbor a project, three things must happen:
The third element is where companies get burned because money changing hands isn't enough. Equipment must be real, documented, and assigned.
It is still realistic to meet safe harbor requirements. Companies that want a proper, competitive process with a meaningful margin for error should start by April 1 at the very latest.
Historically, commercial solar procurement has been a 12–24 month exercise involving developers, consultants, lawyers, and internal stakeholders who struggle to move in sync. That model doesn't work when you need to move with speed and discipline, especially with a fixed ITC deadline carrying a high financial stake.
VECKTA’s tech-enabled procurement has condensed the traditional, analog, outdated, and expensive process. Our fastest transaction closed in seven weeks, from first meeting through system design, RFP, competitive bidding, negotiation, and contract award. That's not a fluke. It reflects what's possible when you combine AI-enabled site assessment, a competitive supplier marketplace, and structured procurement.
Instead of months of one-off developer conversations, teams work through a single advisory team and platform that simultaneously assesses sites for solar potential, models systems against real utility tariffs and runs competitive RFPs across a vetted and curated supplier network. For the first time, intelligence on real pricing and economics is amassing for commercial solar buyers, resulting in a compressed, efficient and more lucrative buying experience.
VECKTA has assessed over 60,000 commercial and industrial sites, modeling more than 7.9 million kW of solar capacity and contracted or actively procuring over $200M in projects. That pattern recognition changes what's possible for individual customers.
For companies wondering whether solar makes sense after the incentive window closes, the answer is: increasingly, yes.
High-cost electricity markets are already there: California, New York, Massachusetts, Connecticut, Rhode Island, Hawaii, New Hampshire, Vermont, New Jersey and Maryland all have commercial rates that make solar economically viable on fundamentals like rising utility costs and falling system prices alone. States like Illinois are increasingly rolling out incentives for solar and battery storage technologies to encourage adoption that will improve their grid reliability, cut emissions, and reduce costs for utility customers.
By 2030, VECKTA analysis suggests that due to continuing utility rate increases, projected at 3-8% annually, depending on state and utility territory, combined with declining equipment costs, onsite solar will be financially compelling across nearly all U.S. markets for companies with the right site characteristics. And battery storage federal tax credits remain intact through 2033, further strengthening the case for systems that provide both cost savings and operational resilience.
The ITC is an accelerant, not the foundation of the business case. But while it's available, there's no reason to leave hundreds of thousands—or millions—of dollars on the table.
Dan Roberts is Co-Founder and SVP of Sales at VECKTA, a commercial onsite energy procurement platform that helps commercial and industrial customers identify, develop, buy, and optimize onsite solar and battery storage projects.
