Commercial Solar: Monetization Pathway for Investors & Landlords
Why this is the most lucrative clean-energy investment before Dec 31 (Safe Harbor Deadline).
Who Can Take the Incentives?
✔ Investors
✔ Landlords / Property Owners
✔ OR a Third-Party Buyer (through tax credit transfer)
Even if a landlord or investor does not have enough tax liability to absorb:
  • 30% Investment Tax Credit (ITC)
  • 10% Domestic Content Bonus
  • 18% Production Tax Credits (10 years)
  • 30% SRECs (depends on state)
  • 10% State Depreciation
  • Federal MACRS + Bonus Depreciation
  • Low-Income + Energy Community adders
Switch Solar can transfer those credits at a discount to a qualified tax-credit buyer. This means all incentives become monetizable, even for investors with low tax appetite.

Result: The investor/landlord recovers 30–60% of project cost immediately through tax credit transfer, even with zero tax liability.
Safe Harbor Mechanics — Why Action MUST Happen Before Dec 31
IRS Notice 2025-42 restricts future incentive eligibility. But any commercial project that invests 5% of contract value before Dec 31 is "locked-in" under the current higher incentives.
That 5% payment = "Safe Harbor"
This is the last year to secure today's incentive structure.
Tax Incentive Profit Sharing Model
Flow:
Investor or Landlord Funds Project
Safe Harbor (5%) Lock-In
Solar Built
Tax Credits Generated
Credits Used or Sold
Cash Returned
Tenant Pays Discounted Fixed Energy Rate
Profit Split (Investor/Landlord)
Key values illustrated in the graph:
  • Solar generation cost before incentives: $0.08
  • Net cost after incentives: $0.04
  • Tenant payment (discounted): ~$0.17–$0.29
  • Profit margin: >$0.10 per kWh
  • Investor payback: 7–8 years
  • Investor IRR: 13.8%
  • Landlord ROI: <2 years (with credit transfer)
Transferability = Cash Refund Even Without Tax Liability
1
1
Investor or landlord can sell tax credits to a third party
2
2
Switch Solar manages the transaction
3
3
Cash recovered in 12–24 months
4
4
Enables participation even for entities with zero tax appetite
This Creates a Win–Win–Win Triangle
1
1
Investor / Capital Partner Wins:
High returns, fast payback, protected under Safe Harbor.
2
2
Landlord Wins:
Higher property value + monetized incentives + passive income.
3
3
Business Operator Wins:
Immediate savings + inflation-proof energy for 25 years.
Financial Advantage for the Landlord
✔ Increased Property Value
A building with a 25-year fixed-rate energy system becomes significantly more valuable.
✔ Immediate Monetization Through Tax Credits
Even without tax liability, the landlord monetizes credits by selling them at a discount.
✔ Investor-Level ROI Without Being an Investor
Landlords can:
  • Invest directly OR
  • Partner with outside investors
  • Still receive a profit share without risking full capital
✔ Long-Term Additional Income
Landlords often negotiate:
  • A premium in rent
  • A portion of electricity savings
  • A share of net profits from tax credits
Financial Advantage for the Business Operator (Tenant)
Most tenants (restaurants, supermarkets, retail stores) pay $0.18–$0.30/kWh nationwide.
With commercial solar:
  • The cost of solar generation is ~$0.08/kWh before incentives
  • After ITC + depreciation: effective cost is ~ $0.04/kWh
If the landlord sells electricity to the business operator at:
➤ 3% discount from their current rate, fixed for 25 years
…the tenant benefits immediately:
✔ Instant savings on day one
Even a tiny discount equals thousands annually for high-consumption businesses.
✔ Zero inflation risk
Energy prices historically rise 3–12% per year With solar, the business locks in 25 years of price stability.
✔ Better budgeting & cash flow
A fixed energy cost dramatically improves financial forecasting.
Investor Economics
Solar cost before incentives:
$0.08 per kWh
Solar cost after incentives:
$0.04 per kWh (effective)
Average grid price for commercial:
$0.18–$0.30 per kWh
When selling electricity to the tenant at a 3% discount, investors still earn:
➤ More than $0.10 per kWh in margin
This is the core profit engine.
Payback & Long-Term Profitability
7-8
Investors Payback:
years (depending on incentives + energy rates)
13.8%
Investor IRR:
over 25 years
<2
Landlord Payback:
years if incentives are sold through Switch Solar (especially when monetizing ITC + MACRS + state incentives)

Business Operator Savings:
Savings begin immediately, with 25 years of predictable energy.