Will Trump's ‘Big Beautiful Bill' kill rooftop solar in California?

San Francisco Chronicle​

2 days ago

President Donald Trump's tax and spending package could gut financial incentives for clean energy programs that for decades have helped American taxpayers recoup some of the costs of installing solar panels and lowering monthly energy bills.
The bill must pass a second reading in the U.S. House of Representative and be signed by the president to become law.
If that happens, the tax credits would still be available for rooftop systems for a limited time. Here's what we know.
What federal financial incentives currently exist for homeowners who want to install solar?
Homeowners and renters can currently recoup 30% of the cost of solar panels and other clean energy home upgrades like batteries through the federal tax credit program.
The average cost to install solar panels in California was $16,380 in 2023, according to a UC Irvine study. After tax credits, the cost dropped to $11,466, researchers found.
The rooftop solar tax credit has roots dating back to 1978 when President Jimmy Carter established the nation's first tax credits for solar amid soaring oil and gas prices. That program ended in the 1980s, but President George W. Bush revived tax incentives for solar in 2005. The most recent iteration came under the Biden Administration when the tax credits were extended through 2032, at which point the program was slated to phase out over two years.
This week, Congress may set a new deadline if the massive budget bill passes: Dec. 31, 2025.
'There is going to be a race for people to install systems by the end of this year,' said Brad Heavner, executive director of the California Solar & Storage Association.
Is there still time to qualify for the tax credit before it might expire?
Yes. The incentives would still be available to people who purchase solar panels and install them by the end of this year.
Households that lease solar panels from companies (rather than buy them) may benefit from the tax credits for two additional years. According to the Senate bill that is under final consideration in the House, companies offering solar panel leasing programs would qualify for a similar tax credit available to solar leasing firms until the end of 2027 and may pass those savings onto customers.
Would the bill affect people who already have residential rooftop solar panels?
No. The bill would impact new solar customers who buy panels after Dec. 31, 2025 and residential customers who lease panels after 2027.
Households that spread the 30% credit over multiple tax years will remain eligible to claim the remainder going forward if they have paid for the panels by Dec. 31, 2025. It wasn't immediately clear whether the panels must be hooked up by that date as well.
Is there any good news for solar?
It's a tough time for rooftop solar in California: The move comes after California slashed credits solar customers get for sending energy back to the grid, and proposals to reduce those credits even further.
Jeanine Cotter, executive director of San Francisco-based solar and battery firm Luminalt, said the short timeframe before the federal tax credits disappear is 'catastrophic.'
'It's as if we have a 30% price hike,' Cotter said.
Heavner, with the California Solar & Storage Association, said that President Trump's policies are likely to increase energy costs for Americans and have 'devastating impacts on solar energy businesses.' And yet, he expects solar to endure — both largescale and on rooftops — because it is far more affordable than new gas-fired power plants.
'The sun is going to keep on shining and electricity bills will continue to increase — solar will be a good investment,' Heavner said.