The solar industry is facing unprecedented challenges as President Trump’s “One Big Beautiful Bill Act” fundamentally reshapes the renewable energy landscape. For homeowners in Maine, Massachusetts, and New Hampshire considering solar installations, understanding these changes is crucial for making informed decisions about their energy future.
What is the “Big Beautiful Bill” and Why Should You Care?
The “One Big Beautiful Bill Act,” signed into law by President Trump on July 4, 2025, represents a dramatic shift in federal energy policy that phases out tax credits for wind and solar power while boosting fossil fuel production. This sweeping legislation has sent shockwaves through the residential solar industry, creating both urgency and uncertainty for New England homeowners.
Key Changes That Affect You:
- Residential Tax Credits End December 31, 2025: The bill proposes ending the residential clean energy tax credit, which allows residents to get 30 percent off the cost of new clean energy projects, like solar panels, geothermal heat pumps and battery storage.
- Limited Grace Period: Solar projects that start construction within 12 months of the bill becoming law can still claim tax credits, but face strict new restrictions.
- Foreign Entity Restrictions: Projects that start construction after this calendar year face burdensome “foreign entity of concern” provisions that tax experts have said are unworkable, amounting to an effective repeal of the incentives.
The New England Solar Market: Current State and Projections
Massachusetts Leading the Charge
Massachusetts has established itself as a solar powerhouse in New England, with aggressive climate goals and favorable policies like the SMART program and net metering. The state offers attractive programs like SMART (Solar Massachusetts Renewable Target) and net metering, making it an ideal market for solar adoption.
Maine and New Hampshire Following Suit
Both Maine and New Hampshire have seen significant growth in residential solar adoption, with companies like Suncovia and ReVision Energy serving the entire region. Despite near-term uncertainty and instability, the residential solar market still possesses significant long-term potential, as national market penetration remains under 10%.
Economic Impact: What This Means for Your Wallet
Before the Bill: The 30% Advantage
Previously, homeowners could deduct 30% of their solar installation costs through the federal Investment Tax Credit (ITC). For a typical $25,000 solar system, this meant $7,500 in tax savings – a significant incentive that made solar financially attractive for most households.
After the Bill: Double the Payback Time
Losing the clean energy tax credit would double the amount of time it will take customers to recoup the costs of installing solar panels, from around 10 years to 20. This dramatic change affects the fundamental economics of residential solar in New England.
Real-World Example:
- System Cost: $25,000
- With 30% Tax Credit: Effective cost of $17,500 (8-10 year payback)
- Without Tax Credit: Full cost of $25,000 (18-20 year payback)
Industry Response and Market Predictions
Massive Job Losses Predicted
SEIA calculates that removing solar tax incentives would result in 330,000 jobs lost across the country, 331 factories closed or cancelled and nearly $300 billion in local investments erased. This includes thousands of jobs across New England’s growing solar sector.
Company Bankruptcies Already Occurring
In 2024, more than 100 solar contractors went bankrupt. On June 6, Solar Mosaic, a California-based company that offers loans for solar projects, filed for bankruptcy. Just a few days later, Sunnova Energy, a leading U.S. residential solar installer, followed suit.
Market Stabilization Expected by 2026
Based on analysis, the global residential solar market is likely to stabilize between 2026 and 2030 at around 35 gigawatt deployments per year, restarting a growth trajectory after a forecast decline in 2024 and 2025.
What New England Homeowners Should Do Right Now
The December 31, 2025 Deadline
If you’re considering solar, time is running out to capture the 30% federal tax credit. Customers are asking: “Is this really going to happen? Can you fit me in before the end of the year?”
State-Level Incentives Still Available
While federal incentives are disappearing, New England states maintain their own programs:
Massachusetts:
- SMART program incentives
- Net metering at retail rates
- Additional local rebates
Maine:
- Net metering programs
- Community solar options
- State tax incentives
New Hampshire:
- Net metering
- Group net metering
- Renewable energy certificates
Working with Experienced Local Installers
Choosing a reputable, experienced installer becomes even more critical in this uncertain environment. Companies with strong track records, like Suncovia with over 20 years of experience in New England, can navigate the complex regulatory landscape and ensure proper installation before deadlines.
The Window of Opportunity: Act Before December 31, 2025
Why Speed Matters
Cuts would go into effect immediately after the bill passes, making it challenging for businesses to continue operating under the new conditions. The immediate nature of these changes means homeowners need to act quickly to secure current incentives.
Installation Timelines
Most reputable solar companies in New England can complete installations within 3-8 weeks, but demand is surging as the deadline approaches. Starting the process early in fall 2025 provides the best chance of completion before year-end.
Long-Term Outlook: Solar Isn’t Dead
Fundamental Economics Still Favor Solar
Even without federal tax credits, solar makes economic sense in many New England markets due to:
- High electricity rates (especially in Massachusetts)
- Excellent solar resource potential
- State-level incentives and net metering
- Decreasing equipment costs
Technology Improvements Continue
Module prices have stayed near record lows, around $0.10/Watt direct current, as substantial module overcapacity continues to depress prices. These cost reductions help offset the loss of federal incentives.
Grid Reliability Benefits
New England’s aging grid infrastructure makes distributed solar generation increasingly valuable for grid reliability and resilience, especially during extreme weather events.
Making the Right Decision for Your Home
Questions to Ask Potential Installers
- Can you guarantee completion before December 31, 2025?
- What state and local incentives are available?
- How do you handle permitting and interconnection?
- What warranties and maintenance support do you provide?
- Can you provide local references from recent installations?
Financial Considerations
- Current electricity bills and usage patterns
- Available roof space and orientation
- Long-term home ownership plans
- Access to financing options
Conclusion: The Time to Act is Now
The “Big Beautiful Bill” has created a critical inflection point for New England homeowners considering solar. While the loss of federal tax credits represents a significant setback, the window remains open for those who act quickly.
For homeowners in Maine, Massachusetts, and New Hampshire, the decision timeline has accelerated dramatically. The combination of high electricity rates, strong state incentives, and the remaining federal tax credit creates a compelling case for immediate action.
The solar industry will adapt and continue to grow, but the current federal incentives represent the best economic opportunity for residential solar in the foreseeable future. Homeowners who move quickly can still capture these substantial savings while contributing to a cleaner energy future for New England.
Ready to explore solar for your New England home? Contact a qualified local installer today to discuss your options and timeline for installation before the December 31, 2025 deadline.
This analysis is based on current legislation and industry reports. Solar incentives and regulations can change rapidly. Always consult with qualified solar professionals and tax advisors for the most current information applicable to your specific situation.
