Disclaimer: This page references tax credits and/or other financial incentives as we understood them at the time of its original publishing. 

Contact us to inquire about such incentives applicable to your purchase today.

A Changing Landscape

The U.S. solar industry is in the middle of a policy shift. This shift could reshape how clean energy tax credits are accessed and who qualifies for them. The situation is evolving quickly, but here’s what we know right now: the ‘One Big Beautiful Bill Act’ (OBBBA) has altered timelines and eligibility for some of the most important federal incentives. 

While this shift in policy may not be something we would have chosen, the US solar market remains strong. The rules, however, are shifting. Business owners, developers, and homeowners should stay informed as best they can. See the information below outlining the policy shifts as we understand them so far. 

Section 25D: Residential Solar Credit

• Section 25D applies to residential solar, battery, or solar-plus-battery systems purchased and owned by individuals. 
• Under the Inflation Reduction Act (IRA), this solar credit tax was set at 30% and extended through Dec 31, 2032. 
• Under the Big Beautiful Bill (OBBBA), the installation deadline has been pushed up to December 31, 2025.

What this means: Homeowners looking to directly purchase solar systems now have a much shorter window to take advantage of the full 30% credit. Systems installed after 2025 will no longer qualify.

Section 48E: Business & Third-Party Solar Credit

• Section 48E applies to solar, battery, or solar-plus-battery systems purchased and owned by companies.

Battery-only systems remain eligible for clean energy tax credits through 2033.

• Homeowners: Can add a standalone battery, even after solar deadlines, and still qualify. 
• Businesses: Use storage to cut demand charges, improve resilience, and claim the 30% credit.
  

• Developers/Investors: Utility-scale storage projects have incentives secured for nearly a decade. 
• Eligible projects include systems installed on a company’s own property or third-party property (such as under a lease or PPA). 
• Under the IRA, this clean energy tax credit was raised to 30% and extended through Dec 31, 2032. 
• Under OBBBA, the deadline shifts to Dec 31, 2027, but with new sourcing requirements: 
  • Solar equipment cannot be sourced from any manufacturer located in or with strong ties to China, Russia, Iran, or North Korea. 
  • Installations completed in 2026 must be at least 40% comprised of domestically produced components/subcomponents. 
    • 45% for installations completed in 2026
    • 50% for installations completed in 2026
    • 55% for installations completed in 2026
    • 60% for installations completed in 2026 

Safe Harbor Rule: Projects that “begin construction” before July 4, 2026, still qualify, as long as installation is completed within four years; this gives large, multi-year utility-scale projects some breathing room.

Clean Energy Tax Credits – The Big Takeaway 

The “Big Beautiful Bill” doesn’t end solar incentives, but it does change the playing field. For homeowners, the clock is ticking; systems installed before the end of 2025 are the last to qualify for the 25D solar credit tax. 

For businesses and solar developers, there’s still runway through 2027 (and longer under safe harbor rules), though supply chain requirements may tighten as the years go on. 

The “Big” Takeaways: 

Solar is still very much alive, and its growth isn’t slowing, but timing matters more than ever.

Solar energy makes financial sense in nearly every scenario today, even without tax credits. With lower equipment costs, higher efficiency, and flexible financing, the math adds up for homeowners, businesses, and developers alike. 

Industry leaders view growth not as a question of “if,” but “when.” Solar is both a smart investment and a sustainable solution; the market will continue to grow, and it’s not going anywhere. 

Sunshine Renewable Solutions is here to help clients navigate the changes, structure projects smartly, and make the most of clean energy tax credits while they’re still on the table.

Contact us today to discuss your solar project.