Every solar professional has spent countless hours trying to decipher what’s in the budget bill that was just signed into law in early July. So, you likely already know the so called “One Big Beautiful Bill” or OBBB (we didn’t name it):
- Ends 25D on December 31, 2025
- Allows third-party owners to continue to get the credit until the end of 2026
We won’t rehash everything here, but for more details, please see our post, The OBBB passed: What it means for solar.
What’s missing from all this information is how actual homeowners feel about the bill.
So, we surveyed 1,000 homeowners to get their reactions to the legislation, and more importantly, see how it might affect their solar buying behaviors.
Here are three things the research showed, how they will affect the solar market, and how you can use them to help your business.
Homeowners aren’t familiar with the bill details
The data
“How familiar are you with how the OBBB affects clean energy or solar”
(sample: 1,000 U.S. Homeowners)
- 34% (33.9%) are “not familiar at all” or have “heard about the bill, but not sure what it means”
- 40% (39.5%) are “somewhat familiar”
- 27% (26.6%) are “very familiar”
While we in the solar industry have pored over every detail of the bill, homeowners largely don’t have a full concept of what’s in there. This is a real opportunity to educate them and build trust.
There are a couple things to highlight:
- The ITC (25D) is still in effect until the end of the year. (See below.) This means that if a homeowner wants to own their solar system (either cash or loan), there likely will never be a better time to do it — at least not for a while.
- 48D, which affects TPO, is in effect until 2027. This gives some leeway for customers that are more flexible or are looking for low/no upfront cost.
While this is second nature to us at this point, it can be confusing to homeowners. Clearly describe all their financing options, clearly lay out the pros and cons, and find something that works for them.
The rest of 2025 could be busy
The data
“If rooftop solar incentives were phased out by next year, how likely would you be to accelerate your timeline to install?”
- 55% at least more likely to act because of incentives expiring
- 19% would “act immediately”
- 36% would be “strongly incentivized to act before the deadline”
As mentioned above, this creates the potential for a short-term increase in solar sales. Be ready. This is the time to use all the tools at your disposal to make your workflows more efficient and faster, so you can get as much installed in 2025 as possible.
But, be prepared to pivot quickly to third-party ownership options. With the longer window, TPO can be a great choice for many homeowners looking to decrease their electric bills, which will be on the rise (to say the least). Speaking of…
Homeowners are expecting higher energy bills
The data
“Do you believe this law will increase energy costs?”
- 34% it will increase energy costs “significantly”
- 34% it will increase energy costs “slightly”
- 23% it will not increase energy costs
- 9% energy costs will decrease
Nothing highlights the value of solar quite like rising energy costs, and the projected increases are stark. This presents an opening for installers. When consumers are paying more for something than they’re used to, they take notice (see: eggs). And even a 10% increase in an electric bill can equal hundreds of dollars a year.
This means that the value proposition for solar is still there even without the tax credits — and it will only get better as rates rise.
Solar’s many other strengths will also be highlighted as the effects of the OBBB start rolling in. For example, with less electricity being added to the grid, shortages will become more common, leading to increased blackouts and brownouts. And the backup power and energy independence of solar (and storage) will become more valuable because of it.
So, make sure you highlight these facts in your proposal. Show how electricity rates will rise significantly while their monthly payment for their solar system stays the same. Show how long a home battery can keep the lights on during outages.
The bottom line
Yes, the OBBB will make it tough for solar and other renewable energy in the near-term. But it isn’t the end of solar, far from it. In fact, it will likely create conditions that make solar’s value even more clear.
“This law is going to drive a reduction in growth and cause shrinking in the industry in the short term. But it’s not a permanent period. It’s a winter,” said Rachel Liddell, Group Product Manager for Aurora. “The innovative people in solar — and its undeniable value — virtually guarantees that solar is going to grow over time. It’ll be spring again, it’ll be summer again.”
Solar installers will need to find new sales strategies, become more efficient to cut soft costs, and be more transparent to build trust. But, the simple fact is that the value proposition of solar is still strong. It’s up to us — more than ever — to show it.