Learn how Ohio businesses can save big with the federal Investment Tax Credit, MACRS depreciation, and utility rebates for commercial solar panel installation.

Are there tax incentives or rebates available?

August 02, 20253 min read

Commercial Solar Tax Incentives in Ohio: What Your Business Needs to Know

When you’re considering commercial solar panel installation in Columbus or anywhere in Ohio, the first question is often: “Are there tax incentives or rebates available?”

Short answer: Yes. And they’re significant.

Let’s break it down clearly so you know exactly how your business can benefit—and how BC Solar helps you get every dollar you’re entitled to.


Federal Investment Tax Credit (ITC)

The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total system cost from your federal taxes. That includes:

  • Solar panels

  • Inverters

  • Batteries

  • Design and installation costs

  • Engineering and permitting

This credit is currently locked in at 30% through 2032, making now a great time to invest in solar.


Accelerated Depreciation (MACRS)

In addition to the ITC, commercial solar systems qualify for accelerated depreciation under the MACRS program (Modified Accelerated Cost Recovery System).

That means:

  • You can depreciate 85% of the system’s cost over 5 years.

  • This can reduce your tax liability even further, especially in the first few years after installation.

Most of our clients use both the ITC and MACRS together—this can offset 50–60% of the total system cost when combined.


State and Utility Rebates

Depending on your location and utility provider, you may also be eligible for:

  • Local utility rebates (availability varies across Ohio)

  • Renewable Energy Credits (RECs)

  • Performance-based incentives in certain jurisdictions

BC Solar will research and apply for every rebate you qualify for. We make sure nothing gets left on the table.


How BC Solar Helps You Maximize Incentives

We don’t just install panels. We walk you through the entire financial process. Here’s how:

  • We calculate your ITC and depreciation savings.

  • We coordinate with your accountant or tax advisor.

  • We apply for local rebates and guide you through the paperwork.

  • We build your system around real payback numbers, not guesses.

When Brian Zaayer (BC Solar’s founder) sits down with your team, the goal is simple: to make your solar investment as financially smart as it is sustainable.


Real-World Example

A Columbus-area bank installed a solar + battery system with BC Solar. With the ITC, MACRS, and local incentives:

  • Over 50% of their system cost was covered

  • Their estimated payback period was under 6 years

  • Their building now operates with grid backup for essential systems


FAQ

How much can my business save with commercial solar incentives?
Between the 30% federal ITC, MACRS depreciation, and possible local rebates, businesses in Ohio often recover 50–60% of the system’s cost through tax incentives alone.

Can I claim the ITC and MACRS depreciation together?
Yes. These two incentives are commonly used together. Your accountant can help you apply them properly—we’re happy to provide documentation and guidance.

Are solar incentives available for nonprofit organizations?
Yes, through direct pay provisions in the Inflation Reduction Act, nonprofits can now receive the ITC as a cash payment even if they don’t owe taxes.

Do I need to apply separately for each incentive?
Yes—but BC Solar helps you track and apply for all of them. We handle the paperwork, so you don’t miss out.


Ready to explore solar for your business?

📞 Call BC Solar at (614) 442-9700 or visit our site to schedule a no-pressure consultation.


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