What Solar Incentives Were Curtailed or Canceled?

What Solar Incentives Were Curtailed or Canceled?

1. "Solar for All" Grant Program Terminated

President Trump’s administration ended the $7 billion "Solar for All" grant program, designed under the Inflation Reduction Act (IRA) to expand solar access to low‑income households. The EPA announced they no longer had funding authority due to the recently signed “One Big Beautiful Bill,” which eliminated the program’s funding source. This move halted grants that had already been awarded, potentially affecting nearly 1 million households.

2. Executive Order Abolishing Clean‑Energy Tax Credits

On July 8, 2025, Trump issued an executive order terminating federal solar and wind tax credits. The Treasury was instructed to phase out clean-energy tax incentives within 45 days. This sent renewable energy stock prices sharply downward and heightened investor uncertainty.

3. The One Big Beautiful Bill Act: Scaling Back Tax Credits

The sweeping One Big Beautiful Bill Act (OBBBA) repealed or limited several renewable energy incentives originally in the IRA:

• Residential solar Investment Tax Credit (ITC) at 30% remains only through December 31, 2025; projects beyond that no longer qualify.
• Commercial and utility-scale solar/wind credits remain only if the project:
  • Starts construction by June 2026, or
  • Is placed in service by December 2027, subject to stricter “safe harbor” rules and new foreign‑entity constraints.
• The Act also ends other clean-energy incentives—like home electrification, EV and charging credits—much earlier than originally scheduled.

4. Tighter ‘Safe Harbor’ & Foreign‑Entity Restrictions

Following the OBBBA, Trump issued an executive order tightening how “begin-construction” is interpreted. Developers can no longer rely on minimal spending (e.g., 5%) to qualify. They now must show substantial physical progress to claim tax credits. Additionally, enhanced screening of foreign-influenced entities makes some projects ineligible.

5. Tariffs on Imported Solar Panels

Going back to his first term, Trump imposed 30% tariffs on imported solar panels (phasing to 15%). This move increased costs for solar installations and triggered the cancellation or postponement of billions in solar projects—shaking investor confidence and hurting industry growth.

6. Funding Freezes and Uncertain Enforcement

Trump’s administration froze many clean energy funds under the IRA and IIJA. The Residential Clean Energy Credit (the 30% tax credit) wasn't directly eliminated by executive order—it still remains legislatively intact—though broader funding uncertainty casts long shadows.

What This Means for Homeowners and Communities

• Homeowners: You can still claim a 30% solar tax credit (ITC) if your system is installed and operational by December 31, 2025. After that, residential credits disappear unless structured as Third-Party Ownership (TPO) installations through 2027.
• Commercial and utility solar developers face tighter deadlines and stricter criteria to qualify for project credits.
• Low-income households and nonprofits were expecting support from the “Solar for All” program; those grants are now rescinded, leaving projects and energy-support initiatives in limbo.
• Industry-wide, both investors and developers face an eroding policy environment and increased volatility.

Final Thoughts

The Trump administration’s latest moves have significantly rolled back federal support for solar energy—dismantling grant programs, ending tax credits, and introducing new compliance hurdles for projects. For anyone considering solar, time is critical: acting now could mean capturing incentives that may soon vanish.

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