Currently there are no incentives offered by LEC. LEC is unique in that they will pay for unused credits at the end of a year. A customer is allowed to choose between keeping unused credits for themselves or donating them to their low-income energy assistance program.

This is discussed under Section III. General Provisions for Net Metering Service, letter G. Disbursement of Unused Credit in the LEC net metering application.

According to LEC, if there are unused credits in an account at the end of a year (at April 1st), then the member will receive a check for that amount accrued. In order to dissuade profiteering, the most a customer can earn from this is up to $599 per year. Anything generated beyond that amount is given to the low-income assistance program. Further, the rate used to calculate the check amount is changed to an avoided cost rate. So, the rate they use to calculate the check amount is much lower than the rate they use to determine credits that are used by a customer in a year (the ones that offset a customer’s bill). Given that the rate is much less and that most consumers only install enough solar to meet their needs, not many make excess, unused credits.

The residential 45D 30% tax credit will no longer be available after December 31, 2025.

For commercial federal tax credits, many curtailments were created by the oil industry’s paid politicians to now sunset the 30% federal tax credit for commercial entities. This program, which has greatly supported renewable energy adoption across the United States, will now go away on December 31, 2027.

To secure the solar Investment Tax Credit (ITC) for a 2026 project at 30%, you must begin construction by July 4, 2026, or place it in service by December 31, 2027 while utilizing equipment that best navigates the new Foreign Entity of Concern (FEOC) rules for the major components (inverters, solar modules and racking) and ensuring robust documentation for compliance. Early engagement with experienced tax counsel and our office team is critical for meeting these tight deadlines in order to secure the maximum tax credit amount available to you.

The credit amount will be available to you when you file your tax return for the year the installation is completed. If you cannot use the full tax credit that year, it can carry forward to subsequent years. We recommend contacting your tax professional to discuss how the FITC can impact your projected tax situation for a specific year.

Learn more about the federal rebate for homeowners and for businesses.

If you are considering a solar project for a business, an accelerated depreciation schedule (MACRS) may be applied to your solar electric system purchase. Energy Design will work with your accountant to articulate the distribution of MACRS and the impact it will have on your tax situation.