What the Inflation Reduction Act Changed for Commercial Solar

Editor's note (2026): tax law has changed since this post was published in 2022. The 30% credit and 2032 runway described below reflect the rules at the time of writing. For current federal and state incentives, see our Tax Incentives page.

The Inflation Reduction Act of 2022 was a major turning point for the solar industry. For commercial and institutional buyers, the headline change was the restoration of the federal Investment Tax Credit to 30% and an extension of that incentive through 2032.

That long runway matters. Instead of planning around a shrinking credit, businesses, farms, schools, churches, and other organizations can evaluate solar with more confidence and a more predictable payback window. For many projects, the updated tax treatment materially improves the long-term return on investment.

The law also made several other solar-adjacent improvements. Standalone storage became eligible for a federal credit, tax-exempt organizations gained a direct-pay path, and new transferability rules created more flexibility for entities that cannot fully use tax credits themselves.

For Delta Solar customers, the most immediate impact was straightforward: projects placed in service after January 1, 2022 could benefit from the higher 30% credit. That change, combined with depreciation and state or USDA programs where applicable, made the post-IRA market significantly stronger for commercial solar.

If you're evaluating a project, the right next step is still a real financial model. Incentives are powerful, but the final economics depend on usage patterns, tariff structure, tax posture, and system sizing.