Start with the Groundwork: How Geotechnical Engineering Helps Secure ITC Safe Harbor in Solar Construction
With shifting regulations and the accelerated phase-out of the federal Investment Tax Credit (ITC), developers in the renewable energy sector are under pressure to act quickly—and strategically. One of the most critical moves you can make? Starting construction in a way that meets ITC “Safe Harbor” requirements.
At PRI Engineering, we help solar developers and EPCs lay the literal and legal foundations for their projects—starting with geotechnical investigations and construction support. If your project is aiming for a 2026 commercial operation date (COD), securing your ITC under current rules begins underground.
What Is ITC Safe Harbor and Why It Matters
The ITC Safe Harbor provision allows solar developers to lock in current tax credit rates—even if their projects aren’t completed for several years. Under U.S. tax code Section 48, there are two primary ways to meet Safe Harbor:
The 5% Test – Spend at least 5% of the project’s total cost and make continuous progress toward completion.
The Physical Work Test – Begin measurable construction, either on-site or off-site, including work related to site preparation or foundations.
In both cases, early geotechnical work and foundation construction are strategic pathways to meet the IRS definition of “beginning construction”—especially if you're not ready to finalize your full procurement.
Why Foundations Are the Smart Safe Harbor Choice
Unlike solar modules or inverters, which may change or become obsolete, structural and foundation components maintain long-term value. Beginning your project with racking procurement and geotechnical work ensures:
✔ A definable construction milestone
✔ Measurable, IRS-recognized site activity
✔ Durable components that will remain relevant through COD
✔ Lower risk of retroactive disqualification due to equipment changes
By investing early in geotechnical studies and foundation systems, developers can demonstrate meaningful project advancement—while also making practical progress toward construction.
Timing Is Critical: Act Before August 2025
An Executive Order currently mandates a review of “start of construction” rules by August 18, 2025. With uncertainty around future requirements, starting in 2025 with foundational work offers security.
Our geotechnical team is ready to support your schedule with:
Availability in 2025 for site work and foundation coordination
Collaboration with foundation suppliers for a turnkey structural approach
Detailed reporting that aligns with tax counsel recommendations and IRS expectations
Partnering with Industry for Seamless Execution
PRI Engineering collaborates closely with structural system suppliers and EPCs to streamline Safe Harbor compliance. When paired with FEOC-compliant hardware from trusted suppliers, your geotechnical and foundation strategy can also support:
Domestic Content and Energy Community ITC Bonuses
Long-term compatibility with evolving procurement requirements
FEOC compliance well ahead of the 2026 deadline
Final Word: Start Underground, Build with Confidence
The road to successful solar development begins beneath the surface. At PRI Engineering, we provide the early-stage geotechnical services that help you meet Safe Harbor thresholds—ensuring your project is stable from both a structural and tax perspective.