How the OBBB Will Affect Solar Companies

Senate Passes OBBB, Scales Back Solar Tax Credits

What’s new

On July 3rd, the House passed the One Big, Beautiful Bill into law 218-214, after Speaker of the House Mike Johnson managed to flip several holdouts.

The new bill removes a proposed 50% excise tax on solar projects using FEOC components, but locks in phase-outs of the ITC/PTC.

What the bill changes for 48E and 45Y (Commercial and utility-scale):

* Commercial and utility-scale projects that break ground within one year of the bill’s enactment can still claim the full credit if they are placed in service by December 31st, 2027, but FEOC restrictions kick in on December 31st, 2025.

* Projects breaking ground after 12/31/25 lose credits if they use “material assistance” from prohibited foreign entities of concern (FEOC), including China, making claiming the credits more difficult.

* Transferability remains intact as long as the tax credits do.

What the bill changes for 25D (residential properties):

* The 30% 25D ITC for homeowners expires at year-end 2025.

* Residential solar electric systems leased to homeowners keep credit access as long as 48E and 45Y last, but leased solar hot-water and small wind units do not.

Bright spots in the Senate’s version:

* Stand-alone storage ITC stays intact through 2033.

* The 45X manufacturing credit remains unchanged through 2030 and begins phasing down January 1st, 2030.

New Jersey Unanimously Passes New Solar Permitting System

What’s new

The NJ Senate just passed S-4100 (39-0) to create a State Smart Solar Permitting Platform that promises to cut much of the state’s red tape with online approvals for code-compliant home solar and battery projects.

Why it matters

New Jersey has the fifth-slowest solar interconnection queues in the country. Faster, uniform permitting means:

* More homes can go solar sooner

* Lower soft costs for installers

* NJ families save even more on electricity

How it works

The Department of Community Affairs must launch the 24/7 automated platform within one year of enactment.

It will run code-compliance checks, generate construction docs, and issue permits on the spot. It’s an ambitious project, and time will tell if the state can pull together a functioning portal in time.

Local option

The legislation allows municipalities to skip the state tool if they deploy an equally capable system and file an annual performance report with DCA.

Sources:

Senate passes budget bill at least without crazy solar excise tax

In Trump’s Megabill, a Clean Energy Phase Out and a Big, Beautiful Tax Break for Met Coal Exporters - Inside Climate News

Republican budget bill dismantles climate law passed by Democrats

Amendments to IRA Tax Credits in the Senate Budget Bill | White & Case LLP.

NJ Senate unanimously passes instant online residential solar permitting legislation

Going solar is easier as ‘State Smart Solar Permitting Platform’ bill passes Senate | ROI-NJ

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit exactsolar.substack.com