How to Safe Harbor aCommercial Solar Project Before Deadlines (and Protect Your 40% ITC Before New Restrictions Hit)

If you're exploring commercial solar for 2025 or beyond, Safe Harbor offers two major advantages:

1. It locks in today’s     full 40% Investment Tax Credit,
2. It secures the     equipment you need before new federal restrictions potentially make     certain components ineligible.

With FEOC rules tightening and several manufacturers at risk of losing eligibility next year, Safe Harbor has become not just a tax strategy— but a procurement strategy.

The businesses that act now can preserve their incentives, avoid costly redesigns, and protect project ROI. Here’s how it works.

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Why Safe Harbor Has Never Been More Important

Safe Harbor exists to protect your project against changes in federal rules. And 2025 is exactly the kind of year it was designed for:

• FEOC restrictions     may disqualify certain foreign-sourced components from receiving ITC     credit.
• New tariffs and supply     chain rules are already increasing equipment costs.
• Treasury guidance     expected next year may tighten ITC eligibility.

Safe Harbor allows you to lock in both your incentive and your equipment before these rules take effect.

This is especially valuable because most all SunGreen customers qualify for the 40% ITC thanks to Energy Community provisions.Safe Harbor ensures you don’t lose that by waiting.

How Safe Harbor Protects Your Incentive AND Your Equipment

Safe Harbor provides a double benefit:

1. You lock in your 40% ITC — permanently.

Even if federal rules change, your project keeps this year’s credit percentage.

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2. You secure ITC-eligible equipment that may not qualify next year.

Under upcoming FEOC rules, certain inverters, optimizers, batteries, and even some module supply lines may lose ITC eligibility.

Safe Harbor lets you:

• Lock in approved equipment     now
• Avoid supply chain     re-selection later
• Prevent redesigns or cost     increases
• Maintain your planned     schedule and ROI

This is one of the least understood but most valuable benefits of Safe Harbor.

How the 5% Rule Works (The Easiest Path for Customers)

Most companies Safe Harbor through a simple step:

Purchase at least 5% of total project costs before the deadline.

The purchase often includes:

• Modules
• Inverters
• Transformers / switchgear
• Racking and BOS components

These items allow us to both:

• Meet the IRS     requirement, and
• Secure equipment     guaranteed to be ITC-eligible, even if manufacturers fall out of     compliance next year.

SunGreen handles all storing, tracking, and documentation —customers never need to receive or manage equipment.

Steps to Safe Harbor Before Year-End (Customer-Friendly Overview)

1. Execute a Solar Agreement

This defines your project cost basis and allows SunGreen to calculate the 5% procurement amount.

2. SunGreen Procures Qualifying Equipment

We work with vetted U.S. distributors — including CED Greentech — to secure components that:

• Count toward Safe Harbor,
• Meet IRS requirements, and
• Are fully compliant     ahead of FEOC rules.

This is critical because equipment purchased after this year may no longer qualify for ITC at all depending on the supply chain.

3. You Receive a Complete Compliance Package

Your finance team receives IRS-ready documentation, including:

• Invoices
• Proof of payment
• Allocation letters
• Delivery or storage     confirmations
• EPC contract sections
• A complete Safe Harbor     certification binder

This is exactly what CPAs and tax attorneys want to see.

4. Project Progress Continues Normally

Once Safe Harbor is completed:

• Engineering continues
• Permitting continues
• Interconnection continues

All of this satisfies the IRS “continuous progress”requirement.
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Examples of Purchases That Qualify AND Protect Your Equipment Plan

Safe Harbor is often the difference between a smooth project and one that must be redesigned after new rules take effect.