RevoluSun Blog

The U.S. Treasury Department recently issued Executive Order 14315, which directed new “beginning of construction” standards for solar and wind projects seeking clean energy tax credits. This led to the publication of IRS Notice 2025-42 on Friday, August 15, 2025.

If you’re considering a commercial solar project in Hawaii, here’s what you need to know.

What This Means for Commercial Solar (Section 48E)

The good news: not much has changed for most commercial solar projects. When the One Big Beautiful Bill Act (OBBBA) passed on July 4th, it set key incentives that remain in place today.

• Most Hawaii commercial rooftop solar projects fall under 1.5 MW, so these updates have minimal impact.
  
• For projects over 1.5 MW, additional considerations may apply, but the majority of businesses won’t be affected.
  
• Current “Safe Harbor” requirements and available incentives remain unchanged.

Key Incentives Still Available

If you move forward soon, you can still take advantage of significant financial benefits:

• 30% Federal Solar Income Tax Credit (minimum)
  
• Additional credits for Domestic Content & Energy Communities (available for select projects)
  
• 100% Bonus Depreciation for qualified installations

Safe Harbor Requirements

1. Sign a contract and make a deposit (we recommend 10% to safely exceed the 5% material purchase requirement).
   
2. RevoluSun will place a purchase order for Safe Harbor-eligible materials before July 4, 2026.

Once your project is safe-harbored, you’ll have until the end of the fourth year after your deposit to complete installation.

Why Act Before the End of 2025

While the updates are positive overall, the Foreign Entity of Concern (FEOC) rules—passed under OBBBA—make it especially important to act before December 31, 2025.

Starting January 1, 2026, new FEOC rules take effect. These rules limit the use of certain solar components manufactured in or linked to China and other restricted countries.

Why this matters:

• May increase equipment costs
  
• Could reduce product availability
  
• Potential for delays and supply chain disruptions
  

By safe-harboring your project before the end of 2025, you can avoid these risks and secure current incentives.

Our Recommendation

We strongly encourage Hawaii businesses to complete the Safe Harbor process before year-end.

• No rush to install — just secure your incentives.
  
• A deposit and signed contract are all that’s needed to lock in benefits.
  
• You’ll have up to four years to complete your installation once safe-harbored

We expect demand to surge leading into 2026, which may create competition for equipment and scheduling. Acting early is the safest approach.

Next Steps

If you’re considering a commercial solar project, our team is here to guide you through the process.

Contact Steve Mazur: steve.mazur@revolusun.com

When you reach out, please include:

• A recent electric bill
  
• Two preferred site visit dates
  
• For new builds: Blueprints and load calculations

Once we receive your information, we’ll schedule your site visit and prepare a customized proposal.

Secure Your Incentives Today

Federal solar tax incentives remain a powerful opportunity for Hawaii businesses — but deadlines are approaching, and the rules are evolving. Acting now ensures you:

• Lock in the highest available credits
  
• Avoid rising costs and delays
  
• Secure equipment before demand spikes

RevoluSun is here to help you navigate these changes and maximize your benefits. Let’s power your business with smarter, cleaner energy.