Commercial Solar: The Most Lucrative Investment Opportunity of 2025
Safe Harbor • IRS Notice 2025-42 • High ROI • Four-Party Win Model.
Investors • Landlords • Business Operators • Switch Solar.
Why 2025 is the Critical Year
IRS Notice 2025-42
IRS Notice 2025-42 changes eligibility for Safe Harbor
New Size Limits
After Sept 2, 2025, only projects ≤1.5 MW AC can use Five Percent Safe Harbor
Commercial Impact
Commercial rooftops almost always exceed 1.5 MW
2025 is the last year to lock in:
30% ITC
Bonus credits
Domestic content adders
Transferability flexibility
What is Safe Harbor?
01
Lock in Tax Credits
IRS allows locking in tax credits by investing ≥5% of project cost before Dec 31
02
Secure All Incentives
This secures all incentives available in that year
03
Extended Timeline
Provides 4 years to complete construction
04
Future Protection
Protects the project from future rule changes
Safe Harbor Documentation Checklist
Contracts & Payments
  • Binding EPC contract
  • Wire/ACH proof of payment
  • Equipment purchase orders
Technical Documentation
  • Engineering + stamped drawings
  • Permit applications
Financial Validation
  • CPA memo validating basis & Safe Harbor percentage
  • Continuity plan (4-year window)
Upcoming Restrictions (FEOC)
2026 Equipment Ban
Beginning 2026, equipment from "Foreign Entities of Concern" cannot be used for 30% ITC
Safe Harbor Protection
2025 Safe-Harbored projects avoid these restrictions
Supply Crisis
Module shortages expected nationwide
Act Now
Urgent need to secure inventory and ITC eligibility now
Full Incentive Stack for Commercial Solar
30% Investment Tax Credit
10% Domestic Content Adder
10–20% Low Income or Energy Community Adders
18% PTC (10 years)
State Incentives
Varies by location
SRECs
State-specific renewable energy credits
MACRS + Bonus Depreciation
20–28% tax benefits
Cost Breakdown
$0.08
Cost to Generate
Cost to generate solar power per kWh
$0.04
Net Cost After Incentives
Net cost after ITC + depreciation per kWh
$0.18-$0.30
Commercial Rates
Commercial rates nationwide per kWh
$0.10+
Profit Margin
Profit margin per kWh
Energy Lease Model for Business Operators
Tenant pays a 3% discounted rate vs current utility cost
Tenant benefits immediately:
No upfront cost
Immediate power bill savings
25-year fixed energy rate
Avoids inflation (3–12% annually)
Landlord Benefits
Monetize Roof Asset
Monetizes roof without investing in solar expertise
Revenue Share
Shares in incentive revenue
Fast Cash
Receives cash within 12–24 months via credit transfer
Property Value
Increases property value by adding a long-term energy asset
Tenant Advantage
Provides tenants a competitive operating advantage
Investor Benefits
7-8
Payback Period
Years to full return
13.8%
IRR
Over 25 years
Tax Advantages
Large tax incentive stack boosts returns
Stable Income
Stable, predictable cashflow from long-term energy sales
Switch Solar Benefits (4th Party Win)
EPC & O&M Provider
Earns revenue as EPC and O&M provider
Compliance Management
Manages documentation, Safe Harbor compliance, and credit transfer
System Maintenance
Maintains equipment, performance, and warranties
Connection & Scaling
Connects investors with properties and tenants. Facilitates long-term portfolio scaling
Four-Party Win Model Diagram
Investor → Landlord → Business Operator → Switch Solar
01
Investor funds project / Safe Harbor
02
Switch Solar installs + sells tax credits
03
Landlord leases roof & receives revenue share
04
Business operator buys discounted fixed-rate power
05
Investor receives cash from tax credits + energy income
06
Switch Solar maintains system & manages incentives
Case Study – Supermarket (Large Load Tenant)
Location: Philadelphia, PA (Example)
  • Energy rate: $0.28 / kWh
  • Solar PPA rate: $0.27 / kWh (3% discount)
  • Annual usage: 1,800,000 kWh/year
  • Annual savings: ~$18,000
  • 25-year savings: ~$450,000–$650,000
  • Investor margin: ~$180,000+ / year
  • Payback: ~7 years
Case Study – Manufacturing Facility
Load Profile: Heavy daytime use
Utility Rate
$0.22 / kWh
Solar Cost After Incentives
$0.04 / kWh
Investor Sells Power At
$0.21 / kWh
Margin
$0.17 / kWh
IRR
14–17%
Visual Graph – Incentive Monetization vs Time
1
1
Gross Project Cost
2
2
Immediate Incentive Recovery (20–40%)
3
3
Energy Income Growth (years 1–8)
4
4
Payback (Year 7–8)
5
5
Profit Years 8–25
Visual Graph – Cost of Power Comparison
Line Graph:
1
1
Utility price rising from $0.20 to $0.40 over 25 years
2
2
Solar fixed at $0.17 (tenant price)
3
3
Solar effective cost (investor net) at $0.04
Summary – Why Act Now
1
IRS Rules Changing
IRS rules change in 2025 & 2026
2
Safe Harbor Closing
Safe Harbor closing for large projects
3
Equipment Restrictions
FEOC restrictions limit equipment sources
4
Rising Utility Costs
Utility inflation rising 3–12% annually
5
Peak Incentives
Incentives strongest this year
6
Lock In Now
5% investment secures 4 years of eligibility
Call to Action
Secure Your Safe Harbor Before December 31
Lock in 30% ITC + bonuses
Protect incentives before new IRS rules
Secure equipment before shortages
Create a 25-year energy asset
Thank You
Let's build long-term wealth through clean energy.
Phone
(407) 250-4845