One Big Beautiful Bill Shortens Timeline for Federal Solar Incentives

On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, and with it came some of the most significant shifts in federal clean energy policy in over a decade. While the bill impacts many sectors, one of the biggest headlines for solar clients is this:

The timeline to access the 30% federal Investment Tax Credit (ITC) has been shortened—dramatically.

If your organization has been considering solar or battery storage, the time to act is now.

WHAT CHANGED?

Previously, solar projects could take advantage of the ITC by starting construction or being placed in service within a relatively generous window. Under the new law, that window just got narrower:

  • Solar projects must begin construction by July 3, 2026

  • Or be placed in service by December 31, 2027

  • Battery storage projects remain eligible for credits through 2034

That means if you wait, you may miss out on incentives covering 30%–60% of project costs—funding that has helped many schools, cities, and businesses pursue energy upgrades without impacting their general budgets.

WHY THE DEADLINE MATTERS

The OBBB isn’t the first policy shift to create urgency in the energy space. In 2024, Arkansas enacted changes to its net metering rules that limited future savings potential for solar customers. Entegrity worked quickly to help dozens of clients lock in their projects before the deadline—and we’re applying that same strategy at the federal level now.

“These policy shifts will force major changes within the solar industry, but also create a short-term opportunity as clients look to take advantage of expiring incentives,” said Michael Iseman, Entegrity’s VP of Asset Development.

WHAT YOU CAN DO RIGHT NOW

Whether you’re a school district, municipality, higher education institution, or private business, here’s how to respond:

  • Start planning now. A simple feasibility assessment can help determine if solar is the right fit.

  • Move toward construction before mid-2026 to maximize funding.

  • Stay informed about key rule changes, especially around:

    • Beginning of Construction (BOC) rules

    • Foreign Entity of Concern (FEOC) compliance

Not sure what those mean? We’ve got you covered—our team is tracking every update and building compliance into every design.

Projected rises in energy cost by state
Image credit: Canary Media

KEY DATES TO WATCH

  • 2025 – Sign new projects while incentives are still fully available

  • July 3, 2026 – Deadline to begin construction under current rules

  • 2032 – Battery storage credits begin to scale down

DON’T LEAVE SAVINGS ON THE TABLE

If you’re even thinking about solar, this is your window. Our team of engineers, policy experts, and NABCEP-certified professionals is ready to help you lock in your savings and future-proof your facilities.

Talk to us about building your project timeline by emailing . Alternatively, reach out to any of our team members. 

For a more detailed breakdown of the OBBB’s ramifications, check out this article. 

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