House passes more bruising budget bill for solar industry

Kelsey Misbrener | Source: Solar Power World | Posted 05/23/2025

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The House of Representatives passed a budget bill with last-minute amendments early Thursday morning that could spell doom for residential solar and significantly hamper large-scale solar. Changes from the first budget bill to this one would impact all solar markets.

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The House of Representatives has passed a budget bill with significant amendments that could severely impact the residential and large-scale solar markets. Key changes include prohibiting solar leasing companies from collecting the Investment Tax Credit (ITC) and imposing strict deadlines for projects to begin construction and be operational by the end of 2028 to qualify for credits. Additionally, the bill eliminates the residential ITC after December 31, 2025, while preserving the manufacturing tax credit until 2029 before a phase-down begins.

Industry leaders have expressed concerns that these changes could devastate the solar industry, particularly for small local businesses that rely on the residential ITC. The Solar Energy Industries Association (SEIA) warns that the legislation could undermine the economic growth and job creation associated with solar energy, while critics argue that it could shift manufacturing jobs back to China and increase electricity costs for consumers. The bill will now move to the Senate for further consideration.

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Source Link: https://www.solarpowerworldonline.com/2025/05/house-passes-more-bruising-budget-bill-for-solar-industry/

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House passes more bruising budget bill for solar industry

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