The Incentives Are Gone. Now What?

We have been in the solar industry for over a decade, and I’ll be honest—I didn’t see this coming quite this fast.

For years, federal solar incentives were basically the lifeblood of our industry. They made solar accessible to millions of homeowners, spawned thousands of installation companies (some good, some… not so much), and helped regular folks finally stick it to their utility companies. But with the recent passage of what politicians are calling the “Big Beautiful Bill,” those federal incentives we’ve all been leaning on? They’re pretty much toast.

And yeah, it’s got a lot of people freaking out.

So what does this actually mean for solar companies, sales teams, and homeowners who were thinking about going solar? Let me break it down for you—the good, the bad, and what we’re all going to do about it.

What Actually Changed

The federal solar Investment Tax Credit (ITC) used to let homeowners knock 30% off their solar installation costs come tax time. That’s a massive chunk of change—we’re talking thousands of dollars for most systems. Well, that’s basically gone now.

The Big Beautiful Bill threw a curveball at our entire industry. Lawmakers basically said, “Hey, solar’s grown up enough—it doesn’t need training wheels anymore.” Whether you agree with that or not, here’s what we’re dealing with:

The big changes:

• That sweet 30% federal tax credit? Gone for new residential installations
• Solar batteries and storage systems got hit too, unless you’re hooking into some fancy smart-grid setup
• The feds are now focusing their money on massive utility-scale solar projects instead of helping your neighbor Bob put panels on his roof

The Immediate Gut Punch

Look, I won’t sugarcoat it—this is already hitting hard. I’ve been talking to installers, sales reps, and lead generation companies all week, and here’s what’s happening:

Homeowners are pumping the brakes That couple who was excited about solar last month? They’re now sitting at their kitchen table with a calculator, wondering if it still makes sense. Without that 30% credit, the upfront costs look scarier, and frankly, the “deal” doesn’t feel as sweet. Sales cycles are already getting longer, and close rates are taking a hit.

Sales teams are scrambling If your pitch was built around tax savings, you’re probably having a rough week. The whole game has changed—it’s not about “Look how much the government will pay you!” anymore. It’s about energy independence, locking in your electric rate, and building long-term wealth. Some teams are adapting quickly. Others… well, let’s just say they’re struggling.

The weak players are getting weeded out Those fly-by-night installers who showed up during the boom years? A lot of them are about to disappear. The companies that were only profitable because of government subsidies are going to have to find new business models or shut down. It’s brutal, but maybe necessary.

But Here’s the Thing—It’s Not All Doom and Gloom

I know this sounds crazy given what I just told you, but I actually think this might be the best thing that’s happened to our industry in years. Here’s why:

State programs are still alive and kicking States like New Jersey, California, and Illinois didn’t just roll over and die. They’ve got their own rebate programs, Solar Renewable Energy Credits (SRECs), property tax exemptions, and performance incentives. When you stack these up, they can sometimes rival what the federal credit used to offer. The money’s still there—it’s just coming from different places.

We’re getting better customers This might sound weird, but the homeowners calling us now are more serious. They’re not just chasing a government handout—they actually want solar. They’ve done their homework, they understand the long-term benefits, and they’re making decisions based on real value, not just tax breaks. These are the customers we want to work with.

High electric bills are the new incentive Have you looked at your electric bill lately? It’s insane. In a lot of places, utility rates have gone up 20-30% in the past couple years. Even without federal incentives, solar still pays for itself in 8-10 years in most markets. The value proposition is still there—we just need to explain it better.

The industry is going to get more professional All those sketchy door-to-door sales guys and companies cutting corners? They’re about to get flushed out. The players who survive will be the ones who actually know what they’re doing, treat customers right, and build quality systems. That’s good for everyone.

So What Do We Do Now?

If you’re in this business, here’s my advice: stop panicking and start adapting. The fundamentals haven’t changed—homeowners still want to save money and reduce their carbon footprint. We just need to tell the story differently.

Rebuild your sales approach Forget the tax credit pitch. Start talking about how solar protects people from rising utility costs, increases home values, and gives them control over their energy bills. Show them what their electric bill will look like in 10 years with and without solar. Trust me, it’s scary enough to motivate action.

Become a local expert Every state, county, and utility company has different programs and rates. If you’re not the local expert on what’s available in your area, you’re missing out. Study the local incentives, understand the utility rates, and become the go-to resource for homeowners in your market.

Focus on quality leads With higher customer acquisition costs, you can’t afford to waste time on tire-kickers. You need people who are actually interested, have done some research, and are ready to have a real conversation about solar. Quality over quantity has never been more important.

Educate like your business depends on it Because it does. Write blog posts, make videos, host webinars—whatever it takes to help people understand why solar still makes sense. The companies that control the conversation will control the market.

The Bottom Line

Look, I’ll be straight with you—this transition is going to be rough for some people. Companies that built their entire business model around government incentives are going to struggle. Sales reps who only knew how to sell tax credits are going to have to learn new skills.

But solar isn’t going anywhere. If anything, it’s becoming more important as utility rates climb and climate change becomes impossible to ignore. The federal incentives were nice while they lasted, but they were never the real reason people should go solar.

The real reason is simple: solar gives you control over one of your biggest monthly expenses while helping the planet. That value proposition doesn’t need a government subsidy to make sense.

The companies that figure out how to communicate that value—and deliver on it—are going to do just fine. Maybe better than fine.

The gold rush is over. The real business is just beginning.