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Solar Installers: Policy Shifts Impacting your Business
As a solar installer, you don’t just wire systems—you wire dreams into reality. At NAZ Solar Electric, we know that every kilowatt you install matters. That’s why it’s crucial to understand how recent federal policy changes—especially those tied to the Investment Tax Credit (ITC)—are reshaping the industry landscape in 2025.
We’re laying out the essentials below so you can speak confidently with your customers, plan with clarity, and protect your bottom line.
The Basics: What’s the ITC and Why It Matters
The Investment Tax Credit (ITC) is a federal incentive that reduces the tax liability for solar projects. It’s one of the most important tools in your customer’s toolkit—cutting the cost of residential, commercial, and community solar systems by thousands of dollars.
As of now, the ITC offers a 30% credit for residential and most commercial solar projects that begin construction or are placed in service in 2025.
What’s Changing in 2026?
The “One Big Beautiful Bill” (OBBBA), recently passed by Congress, accelerates the step-down of the ITC often just called the solar tax credit or the Investment Tax Credit – ITC; officially it is section 25D of the tax code —and it's important that every installer understands the new schedule:
For Residential Projects:
- 30% credit available through December 31, 2025
- Expires completely for homeowners in 2026, unless new legislation revives it
- Applies to batteries, too—even standalone storage
For Commercial & Community Projects: (Section 48 of the tax code)
- 2025 – 30% credit (still in effect)
- 2026 – drops to 18%
- 2027 – drops again to 6%
- 2028+ – ITC ends for commercial solar
Note: Projects may qualify for “safe harbor” to lock in higher rates. More on that below.
What This Means for Installers
You're at the frontline of these changes. Here’s how it may affect your day-to-day work:
- More Customers, Faster Timelines
Expect an uptick in demand as homeowners and commercial clients scramble to go solar before the deadline. Timelines will get tighter—so schedule wisely and prep crews for heavier workloads in Q4 2025. - Questions About Tax Credits? Be Prepared
You don’t need to be a tax advisor—but having a solid grasp of the credit timeline makes you more valuable to your clients. Knowing when to refer them to a CPA also builds trust. - Community Solar & Commercial Clients Need Guidance
If you work with developers or businesses, the phasedown could impact financing and ROI. It’s helpful to bring in system design partners or financing consultants early—and we can help connect those dots. - “Safe Harbor” Is Your Friend
Installers can help customers preserve the 30% credit by:
- Starting construction or
- Spending at least 5% of the total project cost on equipment by the end of 2025
Action Items for Your Team
To stay ahead of the curve:
- Educate your customers early—don’t wait until Q4
- Work with a supplier (like us!) who understands the deadlines and can deliver gear on time
- Review project timelines and tighten up permitting where possible
NAZ Solar Electric: Here for You
We’re more than a warehouse—we’re a support team that’s just as committed to solar progress as you are. Our entire team are watching this evolving policy landscape and are ready to help you plan, pivot, and succeed.
Need guidance? Questions about product lead times or safe harbor orders?
Give us a call or shoot us an email. We’ll make sure you have what you need to keep building your business.
NAZ Solar Electric
Joe Folz – Wholesale Manager – x104
sales@solar-electric.com
Therese Umholtz – Sales Manager – x109
sales@solar-electric.com
Here for you.
Disclaimer
NAZ Solar Electric is a solar distributor doing our best to stay up to date on current policy changes. We are not law or tax experts, and this information should not be considered legal or tax advice.
