Why 2025 Solar Buyers Are Acting Fast — and What Happens If You Wait
Updated
November 18, 2025
2 minutes 50 seconds
min read
About Author
Alex has spent his entire career, in solar energy. In his current role at SunGreen, Alex oversees the design and optimization of systems to ensure they fit customer needs and maximize return on investment. Alex loves the technical aspects of solar energy production and is also well-versed in Federal, state, and utility-level policies regarding renewable energy. Alex is also a regular panel member in various industry webinars.
Find out how Sungreen can help your company avoid high demand charges.
Why 2025 Solar Buyers Are Acting Fast — and What Happens If You Wait
The clock is ticking for businesses that want to capture maximum value from solar energy. The 30% federal Investment Tax Credit (ITC) and current solar incentive structure won’t last forever — and upcoming FEOC (Foreign Entity of Concern) restrictions could make future projects more expensive and less flexible. That’s why smart commercial property owners and CFOs are signing contracts now, before the rules change.
The Window Is Closing: Upcoming Changes to Solar Incentives
Beginning in 2026, new federal sourcing restrictions will tighten qualification standards for the full 30% ITC. Projects that aren’t under contract and “safe-harbored” by the end of 2025 could lose access to current incentive levels. These policy shifts are designed to favor projects that use U.S.-manufactured components — but they’ll also raise costs and delay procurement for anyone who waits too long to move forward.
How Today’s Contracts Lock In 30% ITC and Avoid FEOC Restrictions
You don’t need to complete construction this year to secure your benefits — you just need to contract and make a qualified Safe Harbor purchase (typically 5% of the project’s total cost). This locks your system under today’s ITC rules, preserving full value while allowing you to build later. SunGreen Systems helps clients manage this process seamlessly — from documentation to equipment sourcing — ensuring your project qualifies under the current guidelines.
The Cost of Waiting: Rising Equipment and Labor Prices
Across California, C&I solar costs are already inching up due to supply chain tightening and higher labor demand. Once FEOC restrictions take effect, many imported components will become ineligible, driving prices even higher. In short: every month you wait could mean a higher project cost and reduced tax benefit.
Safe Harbor Explained — Start Now, Build Later
Safe Harbor gives businesses a flexible path to lock in incentives without rushing construction.
Here’s how it works:
1. Sign a contract with a qualified EPC (like SunGreen Systems).
2. Make a 5% qualified payment (equipment or material deposit).
3. Document and certify the transaction to satisfy IRS guidelines.
This approach lets you capture the 30% ITC now — even if your system breaks ground months later.
Why Partnering with SunGreen Systems Makes the Difference
For the last 17 yrs, SunGreen has helped California businesses design, build, and maintain high-performing solar and energy storage systems. Our team stays ahead of federal and state incentive changes, guiding clients through every compliance step — from Safe Harbor strategy to project execution. When incentives shift and complexity increases, experience matters. We make sure your investment stays protected.
Schedule Your Consultation Before Year-End
If your company has considered solar, now is the moment to act. By contracting in 2025, you can preserve full incentives, control costs, and plan construction on your timeline. Don’t wait for incentive changes or price hikes — they’re coming. Schedule your free Safe Harbor consultation with SunGreen Systems today: https://www.sungreensystems.com/contact
