Commercial Solar Investment Tax Credit (ITC) for California Businesses

How Much Of A Solar Project Can Be Paid For By The Government?

The Inflation Reduction Act (IRA) is the most significant clean energy legislation in U.S. history. It’s creating a once-in-a-generation opportunity for commercial property owners to invest in EV charging and solar infrastructure with government support.

Under the IRA, businesses can take advantage of the Commercial solar tax credit California (ITC), along with other incentives and programs, which cover a significant portion, subject to eligibility, of the total project cost. That includes not just the equipment, but design, permitting, roof work and labor as well.

RAYA takes a white glove approach to the entire process of supporting our clients through the process of pursuing tax incentives and financing for these projects, with the goal of improving cashflow and reducing overall costs.

See How One Commercial Business Reduced Its Project Cost Through Stacked Incentives

Here’s how federal and state incentives stack up under the Inflation Reduction Act (IRA).

A commercial client recently installed a 695 kW roof-mounted, ballast-based solar system with a total project cost of $2,697,550. Because the system used U.S.-made components and was located in a designated energy community, the project qualified for a 50% federal Investment Tax Credit (ITC), totaling $1,348,775.

On top of that, the client also benefited from federal MACRS depreciation totaling $768,802 and additional California state-level depreciation savings of $323,706. Altogether, the combined tax incentives covered $2,441,283 of the project cost.

In the end, the client’s out-of-pocket expense was just $256,267—meaning over 90% of the total project was paid for through tax credits and depreciation benefits.

How the Commercial ITC Program Works

Navigating the Commercial Investment Tax Credit (ITC) under the Inflation Reduction Act can be complex. Raya helps you understand which incentives may apply and organizes the project information your CPA needs, so your tax advisor can evaluate and claim what your business is eligible for.

Initial Consultation

During your initial consultation, we help you understand how the IRA and Commercial ITC program may apply to your solar project, and we identify the financial and operational information your CPA will need to assess eligibility.

Organized Project Documentation

We organize the project figures and paperwork behind forms like IRS Form 3468 and the related depreciation schedules, and hand them to you in a clear package for your CPA. Raya does not prepare or file tax returns.

Review With Your CPA

We are glad to walk your CPA or tax advisor through the project details so everyone is aligned. Your CPA prepares and files the forms and determines what you can ultimately claim.

Are You Leaving Thousands in Tax Credits andon the Table?

The government is already spending the money. The question is: are you claiming your share?

If you knew there were federal and state programs designed to help businesses like yours reduce operating costs through clean energy investments, would you look into it?

What if those incentives were disappearing soon and most of your competitors were already making moves?

These aren’t future proposals, they’re active programs that could cover a significant portion of your energy infrastructure upgrades.

So why do so many companies wait… and leave free capital sitting untouched?

If you haven’t calculated what your business qualifies for, how do you know what you’re missing?

Raya Is Powered by experienced Partners and a Vetted Delivery Network

At Raya, we collaborate with top-tier engineering, procurement, and construction (EPC) firms, trusted technology providers and flexible lenders to deliver high-performance commercial and industrial solar projects across California. Our network of vetted partners ensures quality, reliability, and compliance — every step of the way.

Discover What Clean Energy Can Do for Your Business

Explore potential savings, reduce long-term energy costs, and explore the federal solar incentive programs that may apply.

Find out what your facility qualifies for — talk to a commercial solar expert today.

No pressure. No Pitch.

We’re just obsessed with saving you money.

Engineering, procurement, and construction are performed by licensed EPC partners under separate agreement; Raya is not a licensed contractor and does not perform engineering or installation. Incentive and tax information is general, varies by eligibility, and is not tax advice; consult a qualified tax advisor. Savings, payback, and incentive figures are illustrative estimates and are not guaranteed.