The world of solar energy has seen incredible growth and innovation, transforming how homeowners power their lives across the nation. However, a seismic shift could be on the horizon. The recent passage of the “One Big Beautiful Bill Act” in the U.S. House of Representatives introduces provisions that could dramatically impact the solar industry. For fellow solar contractors and solar homeowners, understanding this bill’s implications for solar installations and tax incentives is at the top of our list.

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At August Roofing and Solar, we're dedicated to a sustainable future powered by clean energy, great customer service, and lower costs for our community. It's why we do what we do. Let’s break down what this legislation could mean for our future.

The "Big Beautiful Bill": What's Inside and Why It Matters

This 1,100-page federal tax-cut and spending bill, passed by the House in May 2025, aims to significantly reshape U.S. energy policy; and its provisions might have a lasting effect on the growth of renewable energy, particularly solar. 

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Here's the breakdown of what this bill proposes:

  • ​Elimination of the 25D Tax Credit for Residential Solar: If passed by the Senate, this bill would end the 25D tax credit for residential solar cash and loan purchases at the end of 2025. This credit has been a cornerstone of making solar panels and batteries accessible and affordable for millions of homeowners, directly reducing their federal tax liability of their system cost. Losing this incentive would mean significantly impacting the return on investment and payback period for solar panel installations.
  • Exclusion of Leased Residential Properties from the 48E Tax Credit: The bill would also exclude leased residential properties from the 48E tax credit at the end of 2025. This means that those who typically claim tax credits for leased properties would no longer be able to do so for their solar installation.

  • Accelerated Phase-Outs and Restrictions on Clean Energy Incentives: Beyond residential solar, the bill proposes broader cuts to clean energy tax credits established by the Inflation Reduction Act (IRA) of 2022. This includes accelerating the phase-out of tax credits for manufacturing for the wind industry (by 2028) and for solar panels and solar batteries (by 2032). It imposes stringent requirements for projects to commence construction within 60 days of the bill's passage to receive tax credits. Also, the bill explicitly denies credits to projects using Chinese-made components, which financial analysts have deemed extremely challenging given the current global supply chains.

​The Potential Economic Shift for Solar

The implications of this bill are far-reaching and deeply concerning for our industry:

  • Significant Reduction in New Solar Installations: Some analysts warn that the House bill could lead to a decrease in new wind, solar panels, and solar battery installations by 20% due to increased costs. For the solar industry, this translates directly into fewer projects and reduced revenue.
  • Job Loss and Investment Risk: This legislation may risk over $286 billion of unspent investment in the U.S. manufacturing industry and could endanger 330,000 American jobs by 2030. 
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  • ​Higher Energy Costs for Consumers: Despite saving the government an estimated $50 billion a year (in clean energy tax credit cuts), some studies project that American households might pay up to $415 more per year for energy by 2035 without these incentives.
  • Increased Greenhouse Gas Emissions: By disincentivizing renewables and subsidizing fossil fuels, the bill could lead to annual U.S. greenhouse gas emissions being 1 billion tons higher by 2035.
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​Despite the uncertainty of this bill’s outcome, August Roofing and Solar remains committed to providing exceptional solar solutions that support our Southern California community with a clean energy future. ​

Considering solar for your home? The best time to pull the trigger on your home solar project is now! Click here to schedule a no-cost-to-you solar consultation.