Senate Passes “One Big Beautiful Bill” – What it means for solar, and what happens next

July 3 update: The Senate version of the “One Big Beautiful Bill” described below was passed by both Chambers of Congress and is on its way to becoming law. Residential solar and/or systems installed by December 31, 2025 will still qualify for the 30% consumer solar tax credit (25D). Beginning in 2026, there will be no federal solar tax credit for homeowners to claim.

Around noon Eastern Standard Time on July 1st, the Senate voted on and passed their version of the “One Big Beautiful Bill,” the all-encompassing policy vehicle for the Trump administration. We previously provided an update on the solar provisions over the weekend, and there were some pretty dramatic shifts in what was finally passed.

If you’re interested in solar for your home, here’s what you need to know:

• The consumer tax credit (25D) ends at the end of 2025. Homeowner-owned solar systems need to be installed by Dec. 31, 2025 to claim this 30% tax credit before it’s gone.
• The business tax credit (48E) ends at the end of 2027, but companies will have until 1 year after bill enactment to “commence construction,” which then allows those projects up to 4 years to be completed and claim the full tax credit. 
• Energy Storage tax credits remain for 48E, which will allow for retrofits or battery-only systems via a lease arrangement on the battery.
• The “FEOC” rules are still comprehensive but will be phased in more gradually than the original Senate text, with the majority taking effect at the end of 2025. The key takeaway is that if you’re going solar, consider whether vendors will be around in future years to honor warranty claims, etc. 
• The “excise tax” proposed in the updated Senate text is out. This provision appeared in the Senate draft proposed on June 30 and posed a serious financial risk to future solar and wind projects. However, it was removed before the final Senate vote, and is no longer in the bill.

So what happens next? The bill goes back to the House for a vote. If the House makes any changes, the bill must then go back to the Senate. Once the two Houses agree on the text, it then goes to the President for signature. 

We’ll update these articles with more information as we read through the text. 

But while you’re waiting for more information – we know that the tax credit won’t go away retroactively and you have until the end of 2025 to install solar and claim the 30% tax credit before it’s gone. Start getting quotes today to lock in your home’s maximum savings potential.