Coldwell Energy remains committed to guiding our customers through every twist and turn of renewable energy project development – from legislative updates to supply chain disruptions. With the newly approved One Big Beautiful Bill Act (OBBBA)’s effects on tax credits and energy infrastructure, California’s net energy metering (NEM) program, as well as a 104% tariff now impacting solar panels and other energy equipment from China, the drive to complete renewable energy projects for commercial, industrial, and agricultural businesses is as economically important as ever.
Status of the One Big Beautiful Bill Act
By July 4, 2025, the OBBBA passed the Senate and House of Representatives and was signed by President Trump with updates to tax credits and nationwide energy infrastructure. According to California Solar and Storage Association (CALSSA), “[OBBBA] does extend the Section 48E/45Y commercial solar tax credit for systems that start construction within 12 months of bill signing or are placed in service by the end of 2027. This includes residential leases and [power purchase agreements (PPAs)]. Energy storage will be eligible for the full 30% tax credit through 2033 for commercial systems and residential leases and PPAs. It maintains challenging rules about content originating in China for systems that start construction after the end of this year. It does not include a new tax, independent of the ITC, on systems that have a majority of components from China.”
ITC Eligibility for 2026 Projects
If you’re planning a solar and/or storage project that begins construction in 2026, you can still qualify for the Investment Tax Credit (ITC), even if your system isn’t placed in service until after 2027.
Project Start Year | Solar ITC Value | Storage ITC Value |
2025 | 30% (Full) | 30% (Full) |
2026 | 18% | 24% |
2027 | 6% | 18% |
2028 | 0% | 12% |
2029 | 0% | 6% |
After 2029 | 0% | 0%* |
*Storage projects need to be in construction by end of 2025 for the full ITC and have a gradual phase out through 2033.
Two IRS-Approved Methods to Start Construction
Coldwell Energy can help secure your tax credit by beginning construction of your project in 2025 under the existing Internal Revenue Service-defined rules:
Method | PTO Deadline | Notes |
5% Safe Harbor | End of 2030 | Spend 5% of total project cost in 2026 |
Physical Work Test | No hard deadline | Must show continuous construction activity |
Pro Tip: Keep detailed documentation (i.e. invoices, permits, photos, and schedules), and work closely with your business tax advisor to ensure compliance.
Tariff Impacts and the Urgency of NEM 2.0 Projects
The recent 104% tariff on Chinese solar panels has added complexity to procurement and pricing. For customers still eligible under NEM 2.0, this makes early action even more critical. Coldwell Energy is actively working with customers to meet the April 2026 deadline and avoid delays or cost increases.
Adapting to NEM 3.0: Storage and Strategy
NEM 3.0 introduces new requirements for energy storage but also offers strategic advantages. Customers with NEM 2.0 status can benefit from storing credits for seasonal use, while new projects must adapt to the evolving landscape. Coldwell Energy helps customers design systems that maximize value under both NEM 2.0 and NEM 3.0 frameworks.
Coldwell Energy’s Differentiated Derisking Strategy
At Coldwell Energy, derisking is at the core of our operations. We focus on procuring equipment early, especially for NEM 2.0 projects, to avoid unforeseen delays and cost increases. Our understanding of the commercial, industrial, and agricultural business sectors allows us to work alongside our customers, minimizing interruptions and making the best recommendations for risk management. We understand that timing is everything in renewable energy. That’s why we’ve built a proactive, customer-first approach to derisk every step of your project:
- Customer Experience: With nearly 40 years, we prioritize customer experience, seamless project execution, and long-term value.
- Vendor Relationships: Our strong relationships with top-tier vendors enable us to accommodate price hikes and source components from both US and overseas suppliers.
- Proactive Procurement: By staying ahead of procurement challenges, we ensure that our projects are not impacted by tariffs or delays once installed.
Whether you’re planning for end-of-2025 ITC eligibility, racing to complete a NEM 2.0 project, or adapting to NEM 3.0, we strongly recommend acting now to preserve the best pricing. Our team is ready to guide you through project development, procurement, operations, and beyond so you can focus on what matters most: powering your business sustainably.
Visit www.coldwellenergy.com/contact-us to get started.