Tax Credit Cuts, Tight Timelines: What the New Budget Proposal Could Mean for Clean Energy Access
A closer look at how proposed federal budget changes could reshape rooftop solar, project development, and the pace of clean energy expansion.
There was a moment—just a couple years ago—when clean energy had the wind at its back.
A wave of new tax incentives gave developers of wind, solar, and battery storage projects something rare: certainty. That policy shift fueled investment, unlocked innovation, and sparked optimism across the energy economy. Now, that moment faces a sharp test.
Last week, the House narrowly passed a new federal budget proposal that would end many of those tax credits by 2028, several years earlier than originally planned. It also includes eligibility requirements that industry groups have called “unworkable”—such as requiring projects to begin construction within just 60 days of the bill’s enactment.
For many in the clean energy space, it’s a setback. Analysts say the move could slow momentum, increase project risk, and challenge growth for sectors like storage and transmission.
For homeowners, the proposal could shrink both the timeline and the financial incentive for installing rooftop solar. The current federal tax credit covers 30% of the cost of solar panels and battery storage, significantly lowering the upfront expense. Under the proposed budget, that credit would expire in 2025—seven years earlier than previously planned. The result: less time for planning, heightened short-term demand, and a higher likelihood that some households will miss the window entirely.
More broadly, delayed timelines stand to halt progress at a time when demand is rising. That could mean longer waits to see EV charging stations installed at your neighborhood filling station, or delays in planned energy upgrades for local schools and apartment buildings. If new infrastructure doesn’t keep pace, access stays limited—even as more people need it. While the bill doesn’t undo what’s already been built, it could stall the momentum needed to maintain, expand, or complete projects already in motion—widening the gap between what’s available and what’s needed.
Despite shifting winds in Washington, clean energy leaders remain focused and forward-looking. From major utilities to climate tech startups, the push toward a modernized, diversified energy system continues. Demand is rising. Public interest is growing. And the energy workforce of tomorrow isn’t waiting.
The bill now moves to the Senate, where significant revisions are expected.
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Currently: The Residential Clean Energy Credit allows homeowners to claim 30% of the cost of solar panels, battery storage, or similar upgrades on their taxes—no small thing for a project that can cost $15,000–$30,000. Under the proposed federal budget, that credit would expire in 2025, seven years earlier than originally planned.
What Stands to Change: For homeowners planning to install rooftop solar, the federal budget proposal—if approved in its current form—could make it significantly harder to do so affordably.
What It Means for You:
You’d have a shorter window to make the investment
Contractors may raise prices as demand spikes to beat the deadline
If you’re not ready to install by 2025, you could miss the credit entirely
And some solar companies may slow residential outreach if they anticipate a market drop-off
In short: If you were counting on that credit to make solar feasible, this plan could put that decision—and its savings—out of reach.