By CitiGreen Inc. | Nov, 05, 2025
As 2025 draws to a close, one opportunity stands above the rest for business owners: locking in the current 40–50% federal solar tax credit before it changes.
The Safe Harbor provision gives you a way to secure this year’s incentives even if your project will not be finished until later. The window to qualify is closing fast — and the tax credits themselves are set to end completely on July 4, 2026.
At CitiGreen, our team has been tracking new tax rules, interconnection timelines, and supply chain impacts across California’s grid. Here’s what every business owner should know right now.
What Safe Harbor Means
Safe Harbor is a federal rule that allows businesses to “begin construction” on a qualifying solar project before year-end and still receive the full tax credit available for that year.
If your project reaches the proper milestones in 2025, you can preserve up to a 50% investment tax credit (ITC) even if installation or commissioning finishes later.
Safe Harbor protects your eligibility. It is how commercial projects guarantee their return despite permitting or utility delays.
Why 2025 Is the Year to Act
1. Incentives Are Still at Their Peak
The combined value of solar tax credits, depreciation benefits, and potential domestic-content bonuses can offset up to half of your system cost.
After 2025, qualification rules tighten and values may drop — and by July 4, 2026, the federal tax credit program ends.
2. FEOC Rules Could Change After This Year
CitiGreen’s solar equipment partners are fully FEOC compliant, meeting U.S. sourcing standards.
However, new regulations in 2026 could affect even compliant domestic producers. Material eligibility and pricing may shift, and we cannot guarantee the same equipment cost or tax-credit qualification after the new year.
We recommend every business owner request two proposals — one starting in 2025, and one starting in 2026 — to see the difference clearly.
3. Utility Queues Are Filling Fast
Across California, utilities like PG&E are experiencing record-high volumes. Interconnection studies and approvals can take six to twelve months.
If you wait until 2026, your project could miss the July 4 cutoff and lose the credit entirely.
How to Safe Harbor Your Project in 2025
Step 1: Feasibility Review
CitiGreen’s engineering team evaluates your site, energy use, and layout to design a system that meets both performance and compliance standards.
Step 2: Engineering and Contracts
Approved drawings, invoices, and signed agreements establish your Safe Harbor date. Our experts prepare everything to meet federal guidelines.
Step 3: 10% Deposit or Construction Start
To qualify, projects must either:
- Pay at least 10% of total project cost in 2025, or
- Begin physical construction on the system or interconnection equipment.
CitiGreen manages procurement and documentation so your project meets every requirement.
Step 4: Submit Utility Applications
Rule 21 and CCA interconnection reviews take time. Early submission locks your queue position and prevents costly delays.
Step 5: Verification and Recordkeeping
Once Safe Harbor is achieved, CitiGreen keeps full documentation so your tax team can confidently claim the credit.
How Easy It Is to Get Started
Getting started is simple. All we need is one year of electric bills.
That gives our engineers everything they need to size your system, estimate savings, and create two free side-by-side proposals:
- One qualifying under 2025 Safe Harbor
- One starting in 2026 after the rule changes
You will see the difference in cost, incentives, and long-term savings immediately. There is no cost or obligation to review your proposals.
The Cost of Waiting
Delaying could mean:
- Losing the 40–50% tax credit when it expires on July 4, 2026
- Higher equipment and interconnection costs
- Fewer qualified installers and longer lead times
- Reduced ROI from inflation and policy shifts
Every month counts.
Partner With the Experts
CitiGreen makes Safe Harbor simple. We guide your project from feasibility to interconnection and coordinate with your accountant to ensure full compliance.
Our in-house team manages engineering, permitting, construction, and documentation using only trusted U.S.-compliant materials.
The Bottom Line
The message is clear: start your solar project now.
Acting in 2025 locks in the highest available tax credits before they disappear.
Contact CitiGreen today to request your free side-by-side proposals for this year and next.
All you need to get started is one year of electric bills and a 10% project deposit to secure your Safe Harbor position.
Our experts will handle the rest and help you lock in your 2025 savings while they are still guaranteed.
