Preparing for Change: How to Navigate the Impact of the "One Big Beautiful Bill" on Residential Solar
What solar installers need to know—and do now—to stay competitive as ITC and TPO (Lease & PPA) incentives face major changes in the coming years.
United for Solar
On July 4, 2025, President Trump signed his "One Big Beautiful Bill" (AKA H.R. 1) into law.
Please read the statement released by the President & CEO of SEIA, Abby Hopper.
With the passage of the OBBB, the solar industry faces a new set of challenges—but also a renewed call to action. At Enerflo, we stand with our partners—including the Solar Energy Industries Association (SEIA) through its Solar Powers America campaign, the Residential Solar Association (RSA), and others—in urging the industry to come together. Now is the time to unite around innovation, workforce development, domestic manufacturing, grid stability, and energy affordability to ensure solar continues to grow and deliver for American families and businesses.
No ITC? No Lease or PPA? No Problem.
Watch Enerflo Co-Founder, Pat Bennett, and Ohm Analytics Founder, Chris Collins, break down the "Big Beautiful Bill" and the expected impacts to the solar industry, including which states will be impacted the most. But it's not all doom and gloom. They also share tactical and practical tips for installers to best position themselves to succeed without the ITC, Lease or PPA. It's possible if you diversify.
If you're worried about the impacts to your solar business, then this webinar is for you.
What's Covered
- Key market insights and state-specific data showing where the impact will hit hardest
- The latest version of the "Big Beautiful Bill" and what it means for solar financing
- The biggest risks for installers—and how to mitigate them
- How to confidently sell solar without the ITC or third-party ownership
- And more!
Take Action Now
Enerflo created this guide and checklist to help solar installers understand and prepare for the major changes to federal tax credits under the “One Big Beautiful Bill,” including the phase-out of the ITC and new limits on lease, PPA, and manufacturing incentives.
Overview of Solar and Storage Provisions in the Senate-Passed H.R. 1
[From SEIA, July 1, 2025]
Sections 45Y/48E
- For solar facilities that begin construction (pursuant to existing IRS guidance) after the date that is 12 months after enactment, 45Y and 48E are subject to a placed in service deadline of December 31, 2027.
- The placed in service requirement does not apply to energy storage projects.
- There is no ban on third party financed home solar solutions.
- Fixes the drafting error for the domestic content bonus credit under 48E.
Section 45X
- For integrated component production, an eligible component manufactured and integrated into another eligible component must be manufactured at the same facility, and the end component must be sold to an unrelated person and contain not less than 65% direct material costs attributable to domestic content.
- Changes to the definition of “battery module.”
FEOC Restrictions for 45Y/48E/45X
- Beginning in taxable years after enactment, no specified foreign entity or foreign-influenced entity can claim a 45Y/48E or 45X credit. Existing IRS guidance on beginning of construction is codified for purposes of applying these restrictions.
- For projects that begin construction after December 31, 2025, and for eligible components sold in 2026 and later, taxpayers cannot receive “material assistance from a prohibited foreign entity”
Section 25D
The credit will not apply to expenditures made after December 31, 2025.
Excise Tax
There are no new excise taxes on solar projects.
Transferability and Direct Pay
- No changes to transferability under current law, except that credits cannot be transferred to “specified foreign entities”
- Direct pay recipients will be subject to clawbacks if underlying credits are disallowed as a result of a failure to comply with material assistance provisions.
Stay Informed & Involved
Each of the below organizations is actively fighting to protect the future of solar and renewables energy growth in the U.S. Together, we can make a difference. Please take action and encourage your friends, family, neighbors and colleagues to do the same.
The Solar Energy Industries Association (SEIA) is leading the national charge to save solar & storage through its Save Main Street Solar & Solar Powers America campaigns, mobilizing industry voices and advocating for smart, long-term energy policy in Washington.
The Residential Solar Association (RSA) is giving residential solar professionals a seat at the policy table, fighting to preserve consumer access to solar and stop harmful legislation from gutting the ITC and limiting third-party ownership models.
The California Solar & Storage Association (CALSSA) continues to be a powerful force for protecting distributed solar in California, engaging directly with lawmakers, regulatory bodies, and the public to defend clean energy progress in the nation's largest solar market.
The Florida Solar Energy Industries Association (FlaSEIA) is working tirelessly to safeguard solar rights and economic growth in Florida by pushing back against restrictive policies and ensuring a stable future for the state’s fast-growing solar industry.