What Industrial Companies Should Know About Solar in 2026
A Guide to Going Solar for Factories, Warehouses & More
Solar power is an increasingly appealing energy solution for large industries. Installing panels on factories and warehouses helps to offset rising electricity costs while promoting energy independence.
But adding solar at this scale can also feel daunting. Industrial solar energy projects often involve complicated logistics, many stakeholders, and complex interconnection requirements.
Partnering with an experienced solar installer makes these projects feel achievable. For industrial companies considering solar energy, the first half of 2026 is a critical time. Key deadlines for the expiring federal solar Investment Tax Credit are coming in July. That means the window is quickly closing to take advantage of this benefit.
One Source Solar is aware of the unique challenges large companies face. We bring years of experience managing large-scale solar projects in the Midwest. Here’s a closer look at how to plan your industrial solar project.
Industrial Rooftops Have Huge Untapped Potential for Solar
Solar panels can be mounted on the roof or on the ground, and the large, flat roofs of factories and warehouses make them ideal for solar panels. In fact, research shows that rooftops are a large untapped asset that industrial companies have for cost savings.
A National Renewable Energy Laboratory study from 2016 found that available roofs of large buildings (those 25,000 square feet and above) across the United States have the potential to generate 232 gigawatts of power through solar. This represents about 20% of the nation’s potential rooftop solar capacity.
A more recent study by the firm Wood Mackenzie found that less than 4% of commercial buildings have solar mounted on their roofs. This means many companies across the U.S. are not taking advantage of this resource.
Planning Large Solar Projects: What to Expect
When a company considers going solar, there are several steps to take before any parts are ordered. For industrial companies, there are many considerations. Here are some of the top ones and how your solar installer can help you work through them.
Industrial Roof Condition & Age
While rooftops represent a huge opportunity for solar savings, it’s vital to make sure that any roof is in good working order before solar panels are installed. That’s why one of the first things to take into account is the age and condition of your roof. If your roof is old or showing signs of wear, it may be wise to replace the roof before installing solar panels in order to avoid other expenses down the road.
At the same time, if you’re planning to replace your aging roof, this could be the perfect time to start working with a solar installer to incorporate new solar panels into your building’s design.
Calculating Your Solar Needs
It’s important to design a solar system that meets your company’s unique needs. Your solar installer will take into account your current power usage, the available space you have on your roof for panels, and your energy goals to design a system that’s the best fit for you.
Our solar power experts are available to conduct a free solar cost analysis to make sure your system is the perfect blend of size and savings for your business. This cost analysis takes place before we begin any work, so you won’t agree to a project until you know exactly how much savings you will receive.
Get a Solid Timeline
Industrial projects often operate on a timeline of months, although we can usually complete them in under a year. Knowing how long the planning process will take, how soon construction can begin, and how soon the project can go online are essential factors. They will not only help you manage expectations for the project but also help ensure the project qualifies for the federal Solar Investment Tax Credit.
Federal Solar Tax Credit: What Large Solar Projects Need to Know
The federal solar Investment Tax Credit is a 30% dollar-over-dollar tax credit. It helps offset the cost of purchasing and installing commercial solar projects across the United States. While it’s a major opportunity for commercial and industrial companies, time is running out to secure it.
One key aspect of getting the federal solar investment tax credit is meeting the July 3, 2026, safe harbor deadline. Meeting this deadline will ensure that your project qualifies.
There are two ways that industrial businesses can meet this deadline. For large industrial solar projects (those over 1.5 megawatts), work of a “significant nature” must begin on the project by that date. This could include on-site work like installing racking. It could also include off-site work, such as putting some of the solar panel components together.
A second way to meet the safe harbor deadline only applies to smaller projects. Companies installing projects under 1.5 MW can also meet the deadline by paying down 5% of the project cost by July 3, rather than beginning work.
If you miss the safe harbor deadline, your project must be “placed in service” and generating electricity by December 31, 2027, to qualify for the credit. This is a very tight timeline.
If you meet the July 3 safe harbor deadline, you will have a 4-year window to place your system in service. This helps to protect you from delays in the supply chain, permitting approval, or interconnection process.
How We’ve Helped Iowa Industrial Businesses
One example of the huge opportunity solar offers to industrial businesses is the Vermeer Global Parts Distribution Center in Pella, Iowa. This 312,000-square-foot facility is responsible for housing and shipping out the manufacturer’s massive inventory of agricultural and industrial machinery.
Vermeer partnered with 1 Source Solar to install 5,470 rooftop solar panels on the distribution center that will create a combined 2.7 megawatts of power. The project, which also qualified for the 30% federal solar tax credit, is estimated to give Vermeer a 17.1% return on investment and pay for itself in less than 6 years.
The Countdown Is On. Start Your Industrial Solar Project Today.
As we enter the final stretch to meet the July safe harbor deadline, don’t get left behind. For industrial projects over 1.5 MW, physical construction or custom manufacturing must be underway by then to meet this requirement.
Let’s secure your tax credit and your energy future before the summer deadline. Talk with one of our solar specialists today to get a free solar savings estimate.