Frank Jossi//January 26, 2026//
This photo shows solar panels on the roof of HOM Furniture’s Bloomington store. HOM plans to add solar to three suburban Twin Cities stores and one in Hermantown. (Submitted photo: HOM Furniture)
Businesses look to add solar ahead of federal tax credit end
This photo shows solar panels on the roof of HOM Furniture’s Bloomington store. HOM plans to add solar to three suburban Twin Cities stores and one in Hermantown. (Submitted photo: HOM Furniture)
Frank Jossi//January 26, 2026//
The Blueprint
- HOM Furniture is adding 2.48 megawatts of solar across four Minnesota stores
- Projects qualify for a 30% federal investment tax credit plus a 10% domestic content adder
- Businesses must start solar projects by July 4 to secure long-term tax benefits
- Installers are shifting focus from residential to commercial solar as incentives change
HOM Furniture’s John Pierce wanted to add solar to four stores before the federal investment tax credit ends on July 4.
“The long and the short of it is without the federal tax credits and the incentives, solar as a whole just doesn’t work out,” said Pierce, the real estate executive director for HOM Furniture, Gabberts, and Dock86.
Working with Cedar Creek Energy, HOM will add a total of 2.48 megawatts of solar across three suburban Twin Cities stores and one in Hermantown. HOM will receive a 30% tax credit and an additional 10% credit because the panels contain sufficient domestically manufactured components to qualify for an extra tax break.
HOM installed solar on three stores a few years ago, and Pierce saw that adding more now would be a good idea. “I imagine utility rates in these territories could increase by 20% to 30% within the next five years,” he said. These solar systems provide a relatively fast return on investment and a more reliable energy solution for our showrooms.
When we save money, our customers benefit from those savings. As I like to say, high tides raise all boats.”
While the tax credit for residential solar has ended, it’s not too late for businesses and nonprofits to take advantage of tax breaks for solar and a handful of other clean energy technologies. While businesses receive tax credits, nonprofits installing can still receive reimbursement through a direct payment mechanism.
Minnesota Solar Energy Industries Association Executive Director Logan O’Grady said installers are shifting focus from the residential market, where the tax credit expired on Dec. 31, 2025, to the commercial market.
“It was just such a short timeline on the residential tax credit, so all of our focus was there for the last six months,” O’Grady said. “So now that we’ve gone over that cliff, we’re shifting a little bit more to a public awareness campaign around business owners interested in ground mount or rooftop solar. Now is the time to start moving forward with those investments.”
Avisen attorney Jeremy Kalin said the tax code is complex when it comes to deadlines for clean energy investments. Wind and solar projects that begin on or before July 4, 2026, have four more full years to reach completion and be energized. Companies that start projects after July 4 can still get the investment tax credit and any adders if the projects are energized by the end of 2027.
The investment tax credit goes away at the end of 2027 for solar and wind projects that have not already started construction in time, Kalin said. Tax credits that will remain after 2027 include a shorter list: Battery storage, geothermal, fuel cells and any zero-emitting electricity technologies other than wind and solar.
Companies starting projects before July 4 can secure a “safe harbor” under the tax code, allowing them to complete projects by 2030 by at least partially paying for equipment and services now. “Safe harbor” can be secured by companies that perform physical work on a project or that allocate 5% or more of the final project budget to engineering, modules, racks, or other necessities.
That designation allows them until 2030 to finish their installations, Kalin said. Commercial customers don’t necessarily have to install a few panels before the deadline to prove they’ve begun construction.
Confused? Kalin said that’s a natural response to this maze of deadlines and requirements. But solar developers know the process and the law. Clients should ask plenty of questions to ensure their projects make the tax deadlines, he said. Kalin also noted that any tax credit adders, such as the extra 10% for using panels with a certain amount of domestically manufactured content, remain in place.
Sales operations director Erin Harvey said Cedar Creek Energy now offers panels with sufficient domestic content for clients to qualify for the additional 10% tax subsidy. “Now we’re talking about a 40% tax credit,” she said.
Businesses interested in solar should contact solar companies now to determine whether a project can meet the tax credit deadlines. Knowing any potential issues early in the process can help companies make clearer decisions.
A challenge for some clients has been the economic instability associated with tariffs. “They’re just not wanting to take on any risk, not that solar is a risk; it’s quite the opposite,” Harvey said. “It’s a key piece to a lower operating cost. But when [companies] don’t know what the price is of the material that they need to produce and what the price of the products is, that turns everything on its head.”
Some companies also may face the obstacle that their local utility’s nearest substation is at capacity and cannot accept any additional solar projects, Harvey said.
Xcel Energy spokesperson Theo Keith said grid congestion remains an issue, and that “certain specific areas in our service area have long interconnection queues and there may not be sufficient system capacity to interconnect some systems by July 4.
Xcel has not seen a surge in interconnection applications for commercial solar projects, he said. Still, he recommended that customers and installers submit requests “in a timely manner” to meet the deadline.
Harvey, Kalin, and O’Grady emphasized that, even without tax credits, solar will remain an essential option for companies seeking to control their energy costs better. Utility rates across the country are expected to continue rising, particularly as more large-scale energy users, such as data centers, come online. Self-generating electricity is one way to contain energy costs.
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