8.4 Investment-side installs (rentals, restaurants, factories, after-school facilities): 3–4 year payback

Commercial systems in 2026 still benefit from:

• §48E ITC (30%) — still in effect through end of 2027
• MACRS 5-year accelerated depreciation (roughly 25% equivalent cost recovery)
• State-level additional incentives in some states

Combined with high commercial electricity rates (and meaningful demand charges in $/kW), a 50 kW system on a restaurant, factory, or after-school facility typically pays back in 3–4 years. Annual yields are usually 25%–35%.

The summary: the 30% federal credit is still alive for investment-purpose installs, so any rental, restaurant, factory, or after-school facility install qualifies. And because the asset is investment property, 85% of its value can be depreciated over the next 5 years. If you're in a high tax bracket, total cost drops to less than half of the sticker price.

Worked example: assume a $50,000 system:

• The 30% ITC saves $15,000.
• 5-year depreciation shelters $50,000 × 85% = $42,500 of income from tax.
• At a 40% effective tax rate, that's $42,500 × 0.4 = $17,000 in tax savings.
• Total out-of-pocket cost: $50,000 - $15,000 - $17,000 = $18,000 — only 36% of sticker price.

A 50 kW system at this scale produces 1,500–2,000 kWh per month, which translates to at least $500 saved each month on the bill. Payback inside 3 years is realistic.