On July 4, 2025, the One Big Beautiful Bill Act (H.R. 1) was signed into law, bringing sweeping changes to U.S. tax policy, social programs, defense spending, and — critically for our industry — energy policy. While the bill includes permanent tax cuts and increased defense budgets, it dramatically scales back support for clean energy initiatives, including key incentives that have fueled solar growth in recent years.

Rollback of Clean Energy Tax Credits

A central blow to the solar industry is the rollback and phaseout of many tax credits established under the Inflation Reduction Act (IRA). Notably:

• Tax credits for leased residential solar water heaters and small wind systems are eliminated.
• The “tech-neutral” Investment Tax Credit (ITC) and Production Tax Credit (PTC) for solar and storage projects are terminated for projects beginning after the bill’s enactment or placed in service after 2028.

What does this mean? Projects currently in development lose valuable financial support, jeopardizing their economic viability. Many homeowners and businesses will face higher upfront costs, reducing the overall attractiveness of solar investments.

Favoring Fossil Fuels and Battery Storage

The bill strongly shifts federal support toward natural gas and battery storage projects, creating a more competitive landscape for solar developers. While battery storage solutions stand to benefit, solar-only projects will face greater challenges in securing financing and competing for market share.

Increased Costs and Slower Adoption

With fewer tax incentives, solar installations are projected to become more expensive for both businesses and consumers. Analysts estimate electricity costs could rise by around $110 per household per year, leading to slower adoption of clean energy solutions and stunted growth in the residential and commercial solar markets.

Risk to Solar Project Pipelines

Developers may delay or cancel upcoming solar projects due to reduced financial returns. Smaller installers and new market entrants are especially vulnerable, as they often rely heavily on federal incentives to remain competitive.

Permitting Reforms: A Mixed Bag

While the bill includes measures to accelerate permitting for energy infrastructure, these reforms largely favor fossil fuel and gas pipelines rather than renewable energy projects. This imbalance could further hinder solar growth and shift momentum toward conventional energy sources.

What Solar Businesses Should Do Now

Steps to Consider:

✅ Move quickly on projects in advanced stages to lock in remaining incentives before deadlines.
✅ Add battery storage to your solar solutions to align with policy shifts and market demand.
✅ Focus on commercial and community solar projects, which may show more resilience and scale potential.
✅ Explore alternative financing models like Power Purchase Agreements (PPAs), leasing, and green bonds to make solar more accessible without federal support.
✅ Engage in policy advocacy at state and local levels to push for new or continued incentives for clean energy.

How One Place Solar Can Help

At One Place Solar, we understand that navigating these sudden policy changes can be overwhelming. That’s why we’re committed to supporting solar businesses and developers through every stage of their projects.

• Lightning-fast turnaround: We deliver accurate solar permit designs and engineering packages in just 4 hours.
• High approval rate: Our designs boast a 98% AHJ approval rate, minimizing delays and rework.
• Full-service support: From solar design to EV charging station design, our comprehensive solutions ensure your project stays on track and compliant.
• 24/7 availability: Our team is always ready to assist you, no matter when you need us.

As the solar landscape evolves, partnering with a reliable and agile design team is more important than ever. Let One Place Solar help you adapt, innovate, and thrive — even in a challenging policy environment.

Ready to future-proof your solar business?
Contact us today at +1 209 210 4545 or info@oneplacesolar.com, or visit oneplacesolar.com to learn more.