When the Residential Clean Energy Credit expires at the end of 2025, as many as 17 states without current third-party ownership providers could see their residential solar marketplaces take a nosedive.
While a government report suggests keeping coal units online and adding gas units to meet electricity demand, a GridLab and Telos Energy study suggests that building and connecting clean energy projects now awaiting interconnection could serve near-term demand growth.
In a review of 75 different installer websites across 10 different states, pv magazine USA found some quick responses to the repeal of the tax credit, meant to generate a sense of urgency to sign solar contracts.
Solar developers prioritize advanced-stage projects in the U.S. due to tightened tax credit deadlines, while projects in Canada are “full speed forward.”
Despite the upcoming loss of federal tax credits, community solar developers and investors can prevail if they prioritize states with strong legislation and financial incentives.
Foreign entity of concern (FEOC) rules deny tax credits for projects that exceed using certain thresholds of Chinese products.
The bill cancelled residential solar tax credits at the end of 2025 and added new timelines and restrictions for tax credits under Sections 45Y and 48E.
Renewable energy has sustained an attack from the federal government, but it remains a central focus for new-build energy, explains a memo from the Natural Resource Defense Council.
Third Act was founded by environmentalist Bill McKibben who encourages residential solar because solar power works, it is an inexpensive form of power, it lowers energy bills and helps stabilize the grid.
Lazard’s analysis of levelized cost of electricity across fuel types finds that new-build utility-scale solar, even without subsidy, is less costly than new build natural gas, and competes with already-operating gas plants.
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