11th Hour Amendment Destroys Your Solar Project Unless We Act Quickly

A late amendment to the Big Beautiful Bill has effectively signalled the end for affordable commercial solar projects, including yours.

There remains a few months to capitalize on the current economics of solar for your business, but if it gets signed into law, those 60 days are all that's left of solar as we know it.

We can forget about the 30% Investment Tax Credit (ITC).
We can forget about the 10% Energy Communities Tax Credit.
We can forget about a two-year payback on the investment.

It makes it much harder to fight back against the spiralling energy costs, which have doubled in the last five years in California, and in January 2026 SCE will add a 10% hike on top of the general rate increases in order to help pay for the 2017 Thomas Fire. This follows an additional 2% earlier this year to pay for immediate costs associated with the 2025 extreme weather events, with more to come.

So the government's gutting of solar couldn't have come at a worse time for California businesses. Already burdened with record high and rising utility bills and other spiralling costs, here goes our only real line of self defense.

The complete removal of the solar Investment Tax Credit (ITC) was a shock to those of us in commercial solar, having been long prepared for the ITC to step down following the change of administration in November 2024. We also accepted the additional 10% bonus tax credit, that applied to the vast majority of California, would be eliminated along with the "Elective Pay" program that allowed nonprofit organizations to consume tax credits by way of a direct cash payment.

But we didn't expect all credits to be eliminated in one fell swoop. So the next few months are going to be absolutely critical to your ability to invest in solar as we know it.

Stripping it all the way back to the basics, here's a reminder of why solar has been the single most popular business investment in California for many years:

Solar reduces electricity bills by up to 80%.
It typically has a two-year payback period and an effective shelf life of up to 40 years. That's a few generations of free electricity for your business or nonprofit.
Right now and for the next few months, 40% of the initial investment is covered by the Investment Tax Credit and the Energy Communities Tax Credit.

There are of course many other environmental benefits and it is an absolute necessity if you are in a supply chain with larger corporations, but the main focus should be purely on the fact that commercial solar as we know it is on life support for a final few months if this bill passes.

If you have any ambition to invest in solar in a meaningful way, it's critical to act now.