EconomicsUp to date · Jan 15, 2026
Depreciation
A tax deduction that allows business solar system owners to deduct the cost of the system over time. Under MACRS, commercial solar depreciates over 5 years with possible bonus depreciation in year one.
Why It Matters
Depreciation is one of the biggest financial benefits of commercial solar. Combined with the ITC, it can return over 50% of system cost through tax savings alone.
Related Tools
Related Terms
MACRS (Modified Accelerated Cost Recovery System)
A federal tax depreciation schedule that allows businesses to recover solar investment costs over 5 years, significantly improving commercial solar ROI.
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.