Earlier today the U.S. House passed a budget reconciliation bill that strikes at the heart of America’s clean energy growth. Quietly, and in the final hours, lawmakers added changes that go even further than earlier versions at gutting solar incentives—undermining the tools that installers, manufacturers, and homeowners rely on every day.
What the Bill Does
- Eliminates the 25D Residential Solar Tax Credit and 48E Eligibility for Leased Systems
Homeowners will no longer be able to claim the 30% residential solar tax credit (25D) after 2025. Leased residential systems also lose eligibility under 48E, cutting off both primary incentive pathways for rooftop solar—whether customers want to own or lease their systems. - Cuts Off 48E and 45Y Credits After 2028
Clean electricity investment and production tax credits (48E and 45Y) will no longer be available for any project not placed in service by December 31, 2028. The originally planned phase-out has been scrapped entirely. - Ends Transferability for 45X, 48E, and 45Y
Transferability—a key tool that lets companies sell tax credits to raise upfront capital—is eliminated. 45X transferability ends immediately; 48E and 45Y end two years after enactment. This hurts both manufacturers and developers, particularly smaller firms that depend on this flexibility to finance projects and scale operations. - Imposes a 60-Day Construction Start Deadline
To qualify for 48E or 45Y, projects must begin construction within 60 days of the bill becoming law—a timeline that will disqualify many community, municipal, and commercial-scale projects already in development.
What This Means for the Industry
According to SEIA and ACP:
- Up to 300 solar and storage factories could shut down or never open
- Over $220 billion in investment could be lost by 2030
- More than 100,000 jobs—including many installer jobs—are at risk
- The residential market loses a key driver of homeowner adoption
- Grid reliability, U.S. manufacturing, and energy independence all take a hit
These aren’t theoretical impacts. They will be felt on the roof, in the warehouse, and in the communities you serve.
What You Can Do
At Enstall, we know the power of showing up—on the roof and in policy. There’s still time to change course. The Senate can fix what the House has broken, but that will only happen if they hear from people who do this work every day.
Here’s how to help:
- Use SEIA’s tool to contact your Senators
- Talk to your colleagues and teams—make sure they understand what’s at stake
- Join SEIA or your local solar trade group to stay involved
Installers know what works. And now, more than ever, your voice matters.
Let’s make sure the next generation of solar has a strong foundation.