ITC Safe Harbor Webinar: How to Safe Harbor a Solar Project to Lock-in the ITC Solar Tax Credit

September 10, 2025
11:14 am

We’ve partnered with Ivy Energy on several multi-family solar projects and have many more ahead, but this month we partnered in a different way: we put together an ITC Safe Harbor webinar. This webinar covers everything you need to know about how to Safe Harbor a mulit-family or commercial project to secure the maximum tax incentives for solar projects. We encourage any multi-family or commercial property owner to watch this webinar. It’s about 45 minutes long and full of excellent, valuable information. It covers how to Safe Harbor your project and demonstrates the need to get started soon, because deadlines are approaching fast. Here’s the video of the full webinar:

If you don’t have time to watch the webinar now, here’s an outline and some of the key points of the presentation:

WHO WE ARE

HES Renewables is a top solar EPC (Engineering, Procurement & Construction) company that has decades of experience. We are ready to determine the ideal commercial solar, commercial energy storage system, commercial EV charging stations, or consult with you on the design of these projects.

Ivy Energy is a software company that has created a simple and efficient way to allow multi-family property owners to increase the NOI of their property by selling renewable energy to their tenants. The system is a win-win-win by creating a new revenue stream for owners, allowing energy cost savings to tenants, and allowing both the business and homes to operate under more renewable energy that is generated at the site of consumption.

SOLAR FOR MULTI-FAMILY PROPERTIES

Logan Carter of Ivy Energy discusses the genesis of his company when they set out to make a tenant-friendly solution to sharing solar energy with renters in California. He gives an overview of Ivy Energy billing software and how it creates a new revenue stream for multi-family property owners and ways that allows the solar system to directly benefit tenants who consume the clean energy produced on-site by the solar system. This section of the webinar creates a great understanding of what the Ivy Energy software can do and how it does it – a must for property owners of townhome and apartment buildings with solar.

THE ITC EXPIRATION

Ross Williams, the President and CEO of HES Renewables, then gives an overview of the Investment Tax Credit (ITC), including ITC-qualifying costs and solar building costs that don’t qualify for the tax credit.

This ITC explanation then extends to a brief summary of the One Big Beautiful Bill’s impact on solar by rapidly eliminating the ITC. Mr. Williams explains why businesses and property owners must act fast to secure the solar tax credits for commercial properties.

SAFE HARBOR OPTIONS

Mr. Williams covers the two pathways to Safe Harbor for commercial solar: the 5% Test and the Physical Work Test. He discusses the pros and cons of each Safe Harbor method, but also points out that construction projects are unique so there are several variables that go into deciding which Safe Harbor method is the best for any given project.

He then gives a five-step process on how to Safe Harbor solar projects.

SAFE HARBOR DEADLINES

Then Nick Liles of HES Renewables discusses the specific upcoming Safe Harbor deadlines before going into the significance of each date.

9.2.25

This date, already passed at the time of this 9.4.25 webinar, was a cut-off for large-scale solar projects to achieve Safe Harbor status via the 5% Test. This applies only to systems over 1.5 MW AC, and not the project type toward which this solar webinar is directed.

12.31.25

Commercial and multi-family projects that start before this date can avoid the PFE restrictions of the first ‘major’ deadline to the ITC’s elimination.

PFE = Prohibited Foreign Entities, which is very similar to the more-familiar term FEOC = Foreign Entity of Concern.

In brief, starting before this deadline allows projects to use any solar components, and projects starting after this deadline, in order to qualify for Safe Harbor, are restricted to components not manufactured (or controlled by) certain countries. China, a big maker of solar components, is on this list and so this deadline marks a significant change in what components will be desired for solar projects.

Projects that start before this deadline must be completed by 12.31. 29.

7.4.26

Projects that start after 12.31.25 but before 7.4.26 will require the use of components not from PFE countries. This will complicate projects due to a supply chain that might be stressed and possible price increases on qualifying solar components. Projects in this group will retain the 12.31.29 completion date requirement.

12.31.27

Projects started after 7.2.26 and before 12.31.27 will have the same PFE restrictions as the pre-7.4.26 start date projects. Additionally, in order to receive Safe Harbor for the ITC, these projects will need to be completed before 12.31.27. A project started in the summer of 2026 will likely not run into many issues. But as this deadline approaches, commercial solar projects will run out of time to go start-to-finish; those projects will lose the opportunity to receive the solar tax credit.

The webinar touches on solar for new construction, and the complexities that come into play when trying to secure the tax credit for a building that does not yet exist.

POSITIVE NEWS

The webinar mentions the return of the 100% bonus depreciation, which is good news for property owners considering commercial solar, and touches on another solar topic, Building Performance Standards (BPS). Solar can be a tremendous help avoiding BPS fees, but that topic is held for a future webinar.

STEPS TO TAKE TODAY

The ‘formal’ webinar concludes with an overview of what property owners should do today to ensure they have access to the federal Investment Tax Credit for their commercial solar project.

Q&A

The panel fields questions that cover more aspects of Safe Harbor and multi-family solar both in general terms and in specific instances.

WATCH THE WEBINAR

Multi-family and commercial property owners are encouraged to watch the complete webinar today. Now is the time to act to ‘go solar’ with commercial and multi-family properties. Move fast to secure the full solar incentives offered today… that are disappearing tomorrow.

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