[RE-wrenches] Residential credits: buy now, install later…?????

Thu Jul 17 15:19:00 PDT 2025

That's my/our understanding as well, Kirk.

What's still unclear to me is whether any unused tax credit $$ accrued in
2025 can be rolled forward as was possible in previous years.

Any opinions out there on this?

Mahalo,
marco

On Thu, Jul 17, 2025 at 10:08 AM Kirk Herander via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

>
> Residential tax credit:
>
>
> https://pv-magazine-usa.us13.list-manage.com/track/click?u=2790e780a1533f4bc05c8679a&id=
> <https://pv-magazine-usa.us13.list-manage.com/track/click?u=2790e780a1533f4bc05c8679a&id=f0c9594dad&e=08687aaaf2>
>
> Apparently, the bills wording allows a full purchase or procurement of a
> residential system to be eligible for the tax credits if purchased before
> they expire at the end of 2025. Systems do not need to be installed before
> the end of the year.
>
> If accurate, no “placed in service” 2025 deadline.
>
> “With respect to the Jan 2026 end of Section 25D(residential tax credit),
> experts agree that the determination of whether a homeowner qualifies has
> shifted from the previous “placed in service” test to the bill’s new
> “expenditures made” test.”
>
> “If the homeowner pays for the installation in 2025, they could lock in
> the credit, even if the system is placed in service later,” said Bryen
> Alperin, Partner & Managing Director at Foss & Company."
>
>
>
>
>
>
> *Kirk Herander / **kirkh at vermont.solar <kirkh at vermont.solar>*
>
> *Owner|Principal, VT Solar, LLC*
>
> *Celebrating our 34st Anniversary 1991-2025!!*
>
> dba Vermont Solar Engineering
>
> 802.559.1225
>
>
> On Thu, Jul 17, 2025 at 11:04 AM Harry Mahon via RE-wrenches <
> re-wrenches at lists.re-wrenches.org> wrote:
>
>> This might be related to the technical correction to wording of 48E on
>> percentages of domestic content??
>>
>>
>>
>>    - Correction to Domestic Content Percentages Under 48E: The domestic
>>    content applicable percentage under 48E for qualified facilities and energy
>>    storage technology would be revised to match current 45Y as follows:
>>       - 40% (or 20% for offshore wind) if construction begins before
>>       June 16, 2025;
>>       - 45% (or 27.5% for offshore wind) if construction begins after
>>       June 16, 2025, and before Jan. 1, 2026;
>>       - 50% (or 35% for offshore wind) if construction begins during
>>       2026; and
>>       - 55% if construction begins after Dec. 31, 2026.
>>
>>
>>
>>
>>
>> This content percentage wont matter to residential system owners – 25D
>> still goes away at EOY, no domestic content requirements...
>>
>> Only folks leasing systems can get the credit, THEN domestic content
>> matters.  PV Magazine has good summary article.
>>
>>
>> https://pv-magazine-usa.com/2025/07/10/what-the-budget-bill-means-for-energy-storage-tax-credit-eligibility/
>>
>>
>>
>> Wannabe residential battery owners will likely feel the most immediate
>> impact of the OBBB.
>>
>> Updates to the 25D residential solar tax credit, which covers solar
>> panels, solar water heaters and related property like home battery storage
>> systems, have significantly shortened the timeline for homeowners to access
>> the credit.
>>
>> Now, home batteries will only qualify for the 30% tax credit if they’re
>> purchased and installed by the end of the year before the credit phases out
>> entirely.
>>
>> There is a bright spot: residential systems leased from third parties
>> will remain eligible for tax credits beyond 2025, as they rely on 48E
>> instead of 25D.
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> *Michael Mahon* (he/him)
>> Solar Academy Manager  |  SMA America
>>
>> +1 916 918 9412
>> SMA America <https://www.sma-america.com/> | Solar Academy
>> <https://solaracademy.sma.de/en/> | TechTip Channel
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>>
>> *From:* RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org> *On
>> Behalf Of *scot.arey--- via RE-wrenches
>> *Sent:* Thursday, July 17, 2025 8:11 AM
>> *To:* RE-wrenches <re-wrenches at lists.re-wrenches.org>
>> *Cc:* scot.arey at solarcentex.com
>> *Subject:* [RE-wrenches] Is there a domestic content reqt for batteries
>> effective now? For Residential?
>>
>>
>>
>>
>>
>>
>>
>> I consider myself mostly pretty aware of policy issues that effect
>> business but this paragraph in a Seeking Alpha investment article caught my
>> eye.  Is there a new domestic content reqt for batteries in residential
>> installations?
>>
>>
>>
>> "The higher domestic content batteries comply with the new requirement in
>> the U.S. federal budget law, which retroactively enforces a 45%
>> U.S.-sourced materials threshold for solar and battery products starting
>> June 16, 2025."
>> https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1
>>
>>
>> <https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
>>
>> Enphase Energy begins shipments of IQ Battery 5P with higher domestic
>> content - Seeking Alpha
>> <https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
>>
>> Discover Enphase Energy's new IQ Battery 5P with increased U.S.-sourced
>> materials, complying with updated federal standards.
>>
>> seekingalpha.com
>>
>>
>>
>> Wanting to make sure I'm not setting up this years customers for issues
>> getting the 30% Federal tax credit/
>>
>>
>>
>>
>>
>> *Howard "Scot" Arey*
>>
>> *Owner, Solar CenTex*
>>
>>
>>
>> NABCEP PV Installation Professional
>>
>> TECL 29755
>>
>> 254-300-1228
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