Big Beautiful Bill Confirmed: Prepare for the Great Solar Rush of 2025
California Just Started the Countdown on Commercial Solar
We now know what the Big Beautiful Bill means for businesses and nonprofits looking to go solar: there is a limited window to act—and the deadline is fast approaching.
Per the terms of the Bill, organizations have 12 months to begin construction in order to qualify for the full 40% federal tax credit, but a White House memo issued shortly thereafter directed the Treasury to re-evaluate the process used to determine when a solar project officially 'begins construction’ within 45 days!
The goal is to tighten the rules – essentially, it is likely to become harder for projects to lock in the 40% incentive.
The 2025 Solar Rush Starts Now
The industry is bracing for a surge in demand that will spike in Q4 2025 and continue through Q2 2026. Based on previous experience with such deadlines, the sooner you can lock in your project, the less hurdles there may be to overcome:
Why? Because:
Utilities will be inundated with interconnection applications
City and County planning departments will be buried in backlogs
Equipment suppliers may face delays or shortages
Reminder: Why solar is so important in California
While you wait, utilities are draining your operating budget:
SDG&E rates jumped 108% from 2020 to 2024
PG&E commercial rates rose 110%
SCE increased 90% over the same period
LADWP peak demand charges are up between 1–5 PM
New fixed monthly charges are coming—regardless of usage
These hikes are rising nearly 4x faster than inflation. Solar is one of the few options that can offset these costs—but only if you move quickly.
How quickly, is still unclear. It could be the middle of August 2025 and it could be July 2026. But one thing is clear: the closer we get to the deadline, the slower the processes will move.
Come Q4:
Utility interconnection queues will be back-logged
Permitting timelines will be extended
Construction timelines will get pushed back
Projects that miss construction start window will lose eligibility
If you wait until the industry hits full capacity, you’ll be stuck watching others move forward while you miss out.
Beat the Bottleneck
Our advice is to contact us to get your project moving before the rush begins. The 45-day construction rule changes the game—making early action critical.
The era of tax incentives is winding down, but utility costs will keep climbing. If solar is on the table for your organization, we strongly recommend taking the first steps now.