Practical Information as to Solar Under the BBB

Thinking About Solar? What Trump’s “One Big Beautiful Bill” Really Means for You

You may have heard that government subsidies for solar are dead now that President Trump’s “One Big Beautiful Bill” (OBBB) is law. That’s the spin some headlines are taking—but it’s not the whole story. The truth is more nuanced. Yes, the OBBB makes big changes to how federal solar incentives work, and yes, time is running out. But for homeowners who act quickly, valuable solar tax credits are still available through December 31, 2025. If you’re considering solar, now is the time to understand your options so you don’t miss out—or worse, regret waiting too long.

Here’s a simplified breakdown of what the OBBB actually says and how you can still benefit from solar incentives before they start phasing out.

The 30% Residential Solar Tax Credit Is Ending — But It’s Not Gone Yet

Under current law (Section 25D of the tax code), homeowners who own their solar systems—either through cash or a loan—can claim a 30% federal tax credit. That’s a big deal. On a $20,000 system, that’s $6,000 off your taxes. The catch? That credit goes away for good after December 31, 2025. Even more important: The law says “expenditures made” after that date don’t qualify. That means your system needs to be fully installed and operational before the end of the year—just signing a contract or putting down a deposit won’t cut it. And with solar installations often taking 3–6 months (sometimes longer, depending on where you live), the window to act is closing fast.

Bottom line: If you’re thinking about going solar and owning your system, start now. Waiting even a few more weeks could put your installation past the deadline—and cost you thousands in lost tax benefits.

Can’t Own by Year-End? Leases and PPAs Still Qualify Through 2027

Not everyone can get a system installed before the end of 2025. But there’s another option: third-party ownership (TPO). In a TPO setup, a solar company installs panels on your home, but they own the system and either lease it to you or sell you the power it produces (a model called a Power Purchase Agreement, or PPA). In this case, the business claims the tax credit under Section 48E, and passes those savings on to you through lower monthly payments. The good news: 48E credits continue through the end of 2027. So if you can’t buy outright this year, TPO still gives you access to solar savings—just in a different form.

A “Safe Harbor” Loophole for Larger Projects

There’s also a safe harbor rule in the OBBB allowing large-scale solar projects to qualify for tax credits even if completed years from now—as long as they "commence construction" before July 4, 2026. While this rule is mostly for utility and commercial-scale projects, some residential lease companies might be able to use this provision to continue offering credit-eligible solar well beyond 2027. We’re waiting on federal guidance about what exactly counts as “commencing construction,” so there’s still some uncertainty. But the takeaway is clear: some tax-advantaged solar deals will likely stick around longer, especially for leased systems.

Battery Storage Still Gets a Long Runway

If you’re thinking about adding battery storage (like a Tesla Powerwall or similar), there’s more good news. Under the OBBB, tax credits for third-party-owned storage systems stay in place until 2033. This gives homeowners flexibility to add storage later through a lease, even if their initial system doesn’t include it. (Though it's often cheaper and more efficient to install both together.)

Solar Manufacturing Credits Stay, But Foreign Companies May Miss Out

The OBBB keeps generous Section 45X tax credits for U.S.-based solar manufacturing in place until 2032. However, companies with significant ties to Foreign Entities of Concern (FEOCs)—primarily Chinese-owned firms—will be barred from receiving these benefits.

Why does this matter to homeowners? Because it could affect which solar brands stay in the U.S. market long-term and who backs your warranty. If your system comes from a factory that loses access to tax credits, it may impact support down the line.

Other Tax Credits Phasing Out

A few other energy-related tax breaks are also disappearing soon:

• Solar thermal systems (like solar hot water) lose both consumer and business credits.

• Energy efficiency upgrades for older homes end after 2025.

• Electric vehicle tax credits will end September 30, 2025, instead of continuing into future years.

Final Take: Act Now, But Act Smart

The One Big Beautiful Bill is a game-changer for solar—but it’s not a death sentence.

There are still real, valuable incentives on the table, especially if you’re ready to move quickly and have your system installed by the end of 2025. If that’s not possible, leasing and third-party ownership models offer alternative paths to solar savings through 2027 and beyond. My key takeaway? Don’t let headlines—or deadlines—scare you away from solar. Get informed, know your options, and make your decisions before the opportunity slips away.