New developments this week mark both potential relief and further concerns about the future of the 30 % Residential Clean Energy Credit under the Inflation Reduction Act (IRA).

Latest Developments

Senate Softening Rooftop Solar Cuts

Senator Kevin Cramer confirmed the Senate is working to adjust provisions that would have removed the 30 % rooftop solar credit and subsidies for residential lease systems—a move that rocked solar stocks. He suggested the Senate’s revised approach may be "a little more generous than the House version", aiming to phase out rather than immediately eliminate the credit.

• Advocacy groups are pushing for a softer "off‑ramp" schedule to mitigate disruption to renewable investments and protect jobs.

TVA of Broader Clean-Energy Cuts

• A House-passed version of the OBBB—nicknamed “Trump’s tax megabill”—also fast-tracks clean-energy credit phase-outs including rooftop solar, EVs, home upgrades, and hydrogen. Critics say it could add up to $160/year to household electricity bills by 2035.

• Even Senate Republicans' version is viewed as nearly as damaging—Sen. Ron Wyden warned it “does almost 90% as much damage” to clean energy incentives as the House bill.

National and Regional Impacts

• Reduced clean-energy support could disincentivize investments, raise energy prices, threaten grid reliability and green jobs .

• Economic models show notable risks to states like Texas—potentially $87 billion in GDP loss and 120,000 job cuts by 2035—highlighting consequences for solar-heavy economies.

Where Things Stand

• House version: Ends solar credit plan on Dec 31, 2025.

• Senate version: Seeks a phased elimination, possibly after ~180 days post-enactment, but not yet finalized .

• Congress is racing to wrap this up by July 4, ahead of Trump’s expected signing.

What You Can Do Now

1. Lock in solar installations now: Aim to have contracts, installations, and inspections completed by Dec 31, 2025 to secure the 30 % credit.

2. Talk to your solar advisor: Confirm your inspection and interconnection deadlines so there’s no risk of delay.

3. Stay informed: Monitor Senate proceedings this summer—adjustments or amendments may affect timelines and credit availability.

4. Act quickly: With potential delays or softer phase-outs, early action remains the best way to protect your investment.

Hawai‘i Residents — Why This Matters Even More

• High electricity rates make solar highly effective at controlling costs.

• State credits (up to 35 %) and reliable sunshine mean you’ll benefit from solar even if federal incentives are reduced.

• Still, 2025 is almost certainly your last chance to claim the full 30 % federal credit.

Ready to Help

Alternate Energy is prepared to fast-track your project:

• Free feasibility check & tax-credit evaluation

• Guided installation timeline through inspection & inspection

• Ongoing legislative updates—and adjustments if the Senate softens the credit cliff

Final Thought

Legislative changes could soften rooftop solar cuts—but uncertainty remains high. To maximize savings and avoid regulatory surprises, prioritize your solar project now while the 30 % credit is still on the table.

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