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

Dave Tedeyan dave at sungineersolar.com
Thu Aug 14 07:19:43 PDT 2025 

Hi All,

I am reviving this thread for a moment regarding a non-profit site. Does
anyone know whether and how the direct pay provision for non-profits was
affected by the recent big ugly bill? I am wondering whether they could
still apply for direct pay next year if the project was completed at the
end of this year? Or if this is one of those things that are sunsetting a
little bit later, can they still apply for the direct pay provision if it
is installed in the spring of next year?

I appreciate the groups knowledge here!
Cheers,
Dave

On Fri, Jul 18, 2025 at 2:02 PM Jay via RE-wrenches <
re-wrenches at lists.re-wrenches.org> wrote:

> I think we also need to be very cautious in what people tell potential
> clients as Trump could issue an executive order changing all of this.
>
> I read he’s making changes to the commercial side of things.
>
> Jay
>
> On Jul 18, 2025, at 11:27 AM, Kirk Herander via RE-wrenches <
> re-wrenches at lists.re-wrenches.org> wrote:
>
> 
> So what is the text of subparagraph (B)?? Obviously there is a
> difference of opinion amongst expert interpreters.
>
>
>
> On Fri, Jul 18, 2025 at 11:43 AM Harry Mahon via RE-wrenches <
> re-wrenches at lists.re-wrenches.org> wrote:
>
>> 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>
>>
>>
>> <https://www.sma-america.com/products/hybrid-inverters/sunny-boy-smart-energy>
>> <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> *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…?
>>
>> <image002.jpg>
>>
>>
>>        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> 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> 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
>> <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> *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.
>> <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>
>>
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>
> --
>
>
> *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
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