Solar installers must educate homeowners on impact of OBBB, survey finds

Among the many changes in the One Big Beautiful Bill (OBBB) is the early phase-out of the 30% Investment Tax Credit (ITC), which ends for residential solar at the end of 2025.

Aurora Solar, a solar installer workflow management software provider, surveyed 1,000 people for their reactions to the bill. The main takeaway, Aurora said, is that while 55% of Americans say the expiring solar incentives make them more likely to install solar, just one in four actually understand the urgency created by the new law. According to a statement from Aurora, this gives solar companies have a critical window of time in which to educate consumers about rising energy costs, the benefits of solar energy and the timeline for receiving tax credits.

Among the respondents, 40% find the restrictions to clean energy programs the area of the bill they find most concerning.

The rise in energy costs as a result of the bill has many experts concerned. For example, the Clean Energy Buyers Association estimates that repeal of 48E and 48Y would lead to a national average 7% electricity price increase for households, and a 10% increase for businesses in 2026. Resources for the Future expects electricity price increases reach up to $300 to $400 per year in the upper Plains states. Energy Innovation said that for Texas, repeal of federal credits and funding would increase average annual household energy costs (electricity and fuel) by over $90 per year in 2030, and over $370 per year in 2035. According to Brattle Group, by 2035, loss of tax credits would result in $51 billion per year of additional customer electricity costs, across all customer classes.

However, even with these many estimates of rising costs, 9% of survey respondents said they believe energy costs will decrease as a result of the bill; 23% think they will not increase; 34% said costs will increase slightly; 34% believe costs will increase significantly.

The survey also asked if the recent policy changes affected their likelihood of installing solar panels in the next one to two years, and 40% said it has not impacted their decision. However, 17% want to make haste in having solar installed and 17% also said they’re now highly motivated to install solar.

While 30% tax credit that was extended with passage of the 2022 Inflation Reduction Act will soon fade away, the survey asked how much of a credit would entice respondents to go solar: 44% said they wanted 30% or more, while 29% said they’ll take what they can get. Nearly one-third said a 12% credit would entice them.

Residential solar has enjoyed strong growth since the passage of the IRA, but the bill has shifted that trajectory. Expected to accelerate through 2025, the pace of growth is forecast to drop in many areas. One remaining hope for installers in states that allow third-party ownership is that a provision in the OBBB allows solar companies to receive the commercial investment tax credit under Section 48E for third-party owned installations, as long as they either begin construction of the installations by July 4th, 2026, or place the systems in service before January 1, 2027.

This remaining opportunity is there for those who, according to Aurora Solar co-founder Christopher Hopper, “adjust sales strategies, cut soft costs and prioritize transparency.”

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