Publish Date: July 16th, 2025
It’s official – the “One Big Beautiful Bill” has been signed into law and with it come changes to the federal solar tax credits. While it’s no doubt that this is a blow to the solar industry, we feel confident that solar will endure and that Namaste Solar will continue to serve Colorado for decades to come.
But what do the changes mean for Colorado homeowners and commercial property owners looking to go solar in 2025? And what comes next for solar in 2026? We’ll share what we know at this time and continue providing updates as things change.
Quick Facts about the One Big Beautiful Bill and Solar in 2025
- Residential
- The 30% tax credit for homeowners (25D) expires at the end of 2025.
- Commercial
- Commercial projects that start construction within 12 months of July 4th, 2025, and are placed in service within 4 years are still eligible for the 30% base tax credit plus any applicable bonus adders.
- Commercial projects that start construction after July 4th, 2026, must be completed by December 31st, 2027 to get the 30% tax credit.
- Foreign Entities of Concern
- New Foreign Entities of Concern (FEOC) restrictions go into effect on January 1st, 2026. At that time, projects will need to avoid a certain percentage of materials from “a prohibited foreign entity” to be eligible for the tax credit.
What does this mean for solar in 2025?
The good news is that we now have certainty for the rest of 2025 as the One Beautiful Bill didn’t enact changes that will take place in 2025. The residential tax credit is still in place for projects completed this year. And commercial projects have until the end of 2025 to safe harbor projects under current rules.
Safe harboring is a provision that commercial property owners can take advantage of, and this was preserved in the One Big Beautiful Bill. It allows customers to preserve the tax credit of a given year by beginning construction on a solar project in that year.
There are two approaches that qualify as beginning construction. The first safe harbor mechanism is to incur 5% of total project cost on qualifying equipment such as solar modules, racking, and inverters. The second is to begin physical work of a significant nature on a project. Physical work of a significant nature refers to evidence that work has started on something qualitatively significant. Both are considered acceptable proof of beginning construction and demonstrate that work has been initiated.
What’s the takeaway for solar in 2025? You’ve maybe heard the saying, “The best time to plant a tree was twenty years ago. The second-best time is now.” That applies to solar as well. If you have thought about solar for your home or commercial property or are at all interested in seeing what you could save, now is the time to reach out for a no-pressure quote.
What Comes Next: Solar in 2026 and Beyond
Home Solar
For homeowners, the One Big Beautiful Bill preserves the tax credit for homeowners until December 31st, 2025. So, beginning in 2026 the ITC will no longer be available for homeowners. This is the biggest change in the residential space. For Colorado homeowners looking to go solar and receive the 30% ITC, we recommend reaching out to a local and experienced solar installer as soon as possible.
And, if now is not the right time for your household, perhaps due to job or market uncertainties, we get it. Solar beyond the ITC will still be a sound investment for a variety of reasons, including:
- Utility companies are expected to further increase electricity rates -as they try to increase generation capacity – which can be offset with solar.
- Battery storage and solar provide energy security from increasing grid outages.
- Homes with solar consistently sell for 4 to 6% more than similar homes without it.
- State, city and utility incentives for solar and batteries are still available.
“At Namaste Solar, we are very optimistic about the long-term future of the solar industry,” says Anna Perry, co-owner and Director of Residential Sales. “There is a great value proposition for solar and/or battery storage even without the federal tax credit. We are excited to show homeowners why going solar will continue to be a smart investment.”
Commercial Solar
For commercial property owners, the One Big Beautiful Bill preserves solar tax credit for commercial projects 12 months after signing of the bill, which is until July 4th, 2026. Namaste Solar has successfully safe harbored projects in the past, and we are well equipped to do so now.
“I am confident in our ability to safe harbor projects under the current tax credit of 30% plus any applicable adders,” shared Rachel Mountain, a co-owner and our Director of Commercial Sales. “We’ll be advising clients that we believe it’s best to have a contract signed and modules safe harbored by the end of this calendar year. While technically the bill allows for 12 months from July 4, 2025, other restrictions (FEOC) go into effect on January 1, 2026, that could increase project costs and administrative burden.”
So, for commercial property owners, there’s still time to get a quote and be safe harbored. However, since achieving safe harbor takes time, we recommend reaching out as soon as possible.
The Solar Industry After the Investment Tax Credit
Government investments and subsidies often help build new industries. These crucial investments can offset the initially high costs of new technologies, reduce the risk involved in entering a new industry, and encourage innovation. This was the case for early airlines, satellite infrastructure, the oil and gas industries, and renewables.
The subsidies that have helped the solar industry grow from a niche market to a staple of American energy infrastructure are expiring soon because of the One Big Beautiful Bill. So, what does the solar industry look like without these subsidies?
While the landscape will change, we believe that the solar industry will stand on its own two feet. For many in the industry, it will be a relief to be free from the changing tides of politics.
In 2024, solar accounted for 66% of all new electricity-generating capacity added to the US grid. This was influenced by incentives, but it’s also because there is intensely growing demand for electricity and solar is one of the fastest and least expensive sources we can deploy.
Solar, home electrification, and battery storage are the ways of the future and they’re here to stay. At Namaste Solar, we’ll continue to do our work of transforming energy and transforming business. We’ll continue to serve the Front Range with high-quality solar systems that will save you money and help our environment.
To get started with your free consultation, click the button below or give us a call at 303-447-0300.
