[RE-wrenches] Residential credits: buy now, install later…?????
Harry Mahon
Michael.Mahon at sma-america.com
Fri Jul 18 08:42:31 PDT 2025
Unfortunately I think the actual language of 25D defines expenditure differently than an exchange of money, and would imagine it will be enforced by this administration...
From https://www.solarinsure.com/final-changes-to-solar-tax-credit-from-h-r-1 and quoted is directly from language of 25D (I think the callout from 25D is actually (e)(8)(A) ):
An interesting note with the amendment is the language “with expenditures made after December 31st”. Some have postulated that the change in language here could mean that homeowners could take the credit if they simply paid for the system before the end of 2025. This is clarified in 26 USC 25D(8)(A)<https://uscode.house.gov/view.xhtml?req=(title:26%20section:25D%20edition:prelim)>:
“Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.“
Unfortunately for homeowners, this means that the system does need to be fully installed by the end of 2025 in order to still claim the credit.
----------
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<https://www.youtube.com/playlist?list=PLoiOll7F4i-_Wc4JVN8ga2x2vxc8xews_> | Upcoming Academy Trainings<https://solaracademy.sma.de/en/courses.html?filter%5b1%5d=English&filter%5b2%5d=United%20States>
[cid:image001.jpg at 01DBF7C7.984CE390]<https://www.sma-america.com/products/hybrid-inverters/sunny-boy-smart-energy>
This email and any attachments thereto may contain SMA America, LLC confidential, privileged and private material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto. Thank you.
From: RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org> On Behalf Of Amos Post via RE-wrenches
Sent: Friday, July 18, 2025 9:26 AM
To: RE-wrenches <re-wrenches at lists.re-wrenches.org>
Cc: Amos Post <integrityenergy101 at gmail.com>
Subject: Re: [RE-wrenches] Residential credits: buy now, install later…?????
If this is the case, when would the system need to be installed by??? There must be a deadline…?
[cid:image002.jpg at 01DBF7C7.984CE390]
Amos Post
Integrity Energy
W 802.763.7023
C 802.291.2188
ienergyVT.com<http://www.ienergyvt.com/>
Facebook<https://www.facebook.com/integrityenergyllp?ref=hl>
On Jul 17, 2025, at 7:39 PM, Howie Michaelson via RE-wrenches <re-wrenches at lists.re-wrenches.org<mailto:re-wrenches at lists.re-wrenches.org>> wrote:
If this is accurate, that will make a big difference. I'm getting overwhelmed with requests for systems.
Howie
On Thu, Jul 17, 2025, 4:08 PM Kirk Herander via RE-wrenches <re-wrenches at lists.re-wrenches.org<mailto: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<mailto: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<mailto: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<https://www.youtube.com/playlist?list=PLoiOll7F4i-_Wc4JVN8ga2x2vxc8xews_> | Upcoming Academy Trainings<https://solaracademy.sma.de/en/courses.html?filter%5b1%5d=English&filter%5b2%5d=United%20States>
<image001.jpg><https://www.sma-america.com/products/hybrid-inverters/sunny-boy-smart-energy>
This email and any attachments thereto may contain SMA America, LLC confidential, privileged and private material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto. Thank you.
From: RE-wrenches <re-wrenches-bounces at lists.re-wrenches.org<mailto: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<mailto:re-wrenches at lists.re-wrenches.org>>
Cc: scot.arey at solarcentex.com<mailto: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.<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>
seekingalpha.com<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>
Wanting to make sure I'm not setting up this years customers for issues getting the 30% Federal tax credit/<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>
<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>
Howard "Scot" Arey<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>
Owner, Solar CenTex<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>
NABCEP PV Installation Professional<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>
TECL 29755<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>
254-300-1228 <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>
_______________________________________________
List sponsored by Redwood Alliance
Pay optional member dues here: http://re-wrenches.org
List Address: RE-wrenches at lists.re-wrenches.org
Change listserver email address & settings:
http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org
There are two list archives for searching. When one doesn't work, try the other:
https://www.mail-archive.com/re-wrenches@lists.re-wrenches.org/
http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org
List rules & etiquette:
http://www.re-wrenches.org/etiquette.htm
Check out or update participant bios:
http://www.members.re-wrenches.org<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>
_______________________________________________
List sponsored by Redwood Alliance
Pay optional member dues here: http://re-wrenches.org
List Address: RE-wrenches at lists.re-wrenches.org
Change listserver email address & settings:
http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org
There are two list archives for searching. When one doesn't work, try the other:
https://www.mail-archive.com/re-wrenches@lists.re-wrenches.org/
http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org
List rules & etiquette:
http://www.re-wrenches.org/etiquette.htm
Check out or update participant bios:
http://www.members.re-wrenches.org<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>
_______________________________________________
List sponsored by Redwood Alliance
Pay optional member dues here: http://re-wrenches.org
List Address: RE-wrenches at lists.re-wrenches.org
Change listserver email address & settings:
http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org
There are two list archives for searching. When one doesn't work, try the other:
https://www.mail-archive.com/re-wrenches@lists.re-wrenches.org/
http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org
List rules & etiquette:
http://www.re-wrenches.org/etiquette.htm
Check out or update participant bios:
http://www.members.re-wrenches.org<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>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org/attachments/20250718/70d77bc1/attachment-0001.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 68542 bytes
Desc: image001.jpg
URL: <http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org/attachments/20250718/70d77bc1/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 7516 bytes
Desc: image002.jpg
URL: <http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org/attachments/20250718/70d77bc1/attachment-0003.jpg>
More information about the RE-wrenches
mailing list