Threshold for solar container projects

Here's the bottom line: once your solar installation hits 20 MW, you're no longer dealing with simplified residential or commercial procedures. A major change is coming for commercial solar projects — and it could determine whether your company qualifies for the federal 30% Investment Tax Credit (ITC) for solar or loses it entirely. Starting January 1, 2026, new Foreign Entity of Concern (FEOC) rules take effect. The Investment Tax Credit (ITC) remains one of the most powerful incentives driving the adoption of solar and energy storage in the U. To help developers, businesses, and partners maximize the benefit, the IRS has issued updated Safe Harbor rules that clarify how projects can qualify. As projects move into 2026, traditional safe harbor strategies, particularly those relying primarily on the 5% rule through early equipment purchases, carry increased execution and compliance risk. Safe harboring still exists, but it now requires tighter coordination between construction activity.