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Why Solar Installers Must Prioritize Energy Storage Sales After the One Big Beautiful Bill

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The passage of the One Big Beautiful Bill (OBBB) on July 4, 2025, has fundamentally altered the solar industry by terminating the 30% federal solar tax credit for residential installations under Section 25D after December 31, 2025. However, the preservation of tax credits for energy storage systems (ESS) under Section 48E through 2033 offers a critical opportunity for solar installers to adapt. Below, we explore why prioritizing energy storage sales is now essential, validated by recent legislative and market developments.


1. Offset the Loss of Solar Tax Credits

The OBBB eliminates the Residential Clean Energy Credit, increasing the upfront cost of solar systems. For a $20,000 residential solar installation, homeowners could previously claim a $6,000 tax credit, but this incentive expires for systems installed after December 31, 2025. This makes standalone solar less financially viable.

Fortunately, Section 48E preserves a 30% tax credit for third-party-owned energy storage systems until 2033, with a phase-out thereafter. By bundling solar with ESS, installers can help customers leverage these credits to offset costs. For instance, a $10,000 battery system could yield a $3,000 credit, enhancing the affordability of the combined package and maintaining ROI. This strategy softens the financial impact of the OBBB’s solar credit termination.


2. Enhance Energy Independence and Resilience

Battery storage enables homeowners to store solar energy for use during peak pricing periods or outages, reducing grid dependence. In Texas, solar-plus-storage has significantly improved grid reliability, with battery discharge reaching record highs during peak evening hours in 2024, stabilizing the grid and lowering wholesale electricity prices. X posts emphasize that solar-plus-storage is the fastest and most cost-effective way to add energy to the grid, even without solar subsidies, due to persistent storage credits.

With rising electricity prices driven by increased demand (e.g., from data centers) and ongoing grid reliability concerns, storage solutions appeal to homeowners seeking resilience. Installers who offer these systems position themselves as providers of comprehensive energy independence, differentiating their services in a post-OBBB market.


3. Capitalize on Market Demand and Urgency

The OBBB’s deadline—requiring solar installations to be completed by December 31, 2025, to qualify for the 30% credit—has sparked a rush among homeowners. Industry experts like Cynthia Alvidrez in California report a “panicked” market as customers scramble to secure installations. Installers can capitalize on this urgency by promoting solar-plus-storage bundles, maximizing incentives before they expire.

Storage also enhances solar’s value proposition. As renewable energy advocate Jenkins noted, “It’s hard to think of a bigger self-own. We’re effectively raising taxes on the country’s main sources of new power at a time when electricity prices are already rising.” Critics of the OBBB, like Energy Secretary Chris Wright, argue renewables are unreliable, advocating for coal and gas. However, storage counters this by enabling reliable energy delivery, allowing homeowners to store solar energy and avoid peak utility rates, a benefit that resonates strongly in the current market.


4. Mitigate Industry Downturn Risks

The OBBB is projected to reduce new solar installations by 20% due to higher costs, with job losses and canceled investments already affecting the industry. SUNation’s Scott Maskin called it a “dark day” for traditional residential installers, predicting that only diversified companies will survive.

By expanding into storage, installers can diversify revenue streams and reduce reliance on solar-only sales. Storage systems require specialized expertise, opening opportunities for maintenance, upgrades, and integration services. This diversification helps installers navigate the anticipated market contraction and maintain competitiveness.


5. Align with Long-Term Industry Trends

Despite the OBBB’s impact, the U.S. solar and storage sectors continue to grow, driven by the Inflation Reduction Act’s support for domestic manufacturing. Factories now produce over 50 GW of solar panels annually. In Texas, approximately 10 GW of power—mostly solar with battery storage—was added in 2024, reducing brownouts and enhancing grid stability. These additions, including 11.6 GW of utility-scale solar and significant battery capacity, highlight storage’s growing role.

The extension of Section 48E credits through 2033 ensures a stable foundation for storage growth. Installers who invest in storage expertise now will align with these trends, positioning themselves for future demand as solar and storage technologies become more cost-competitive.


6. Practical Steps for Installers

To adapt to this shifting landscape, solar installers should:

  • Educate Customers: Emphasize the financial benefits of storage credits and the resilience offered by solar-plus-storage systems.

  • Promote Bundled Packages: Offer integrated solar and storage solutions to simplify purchasing and maximize incentives before the 2025 deadline.

  • Partner with Trusted Suppliers: Collaborate with reputable storage manufacturers to ensure product reliability and robust warranties.

  • Leverage Financing: Work with platforms like EnergySage or Palmetto to provide leasing or low-cost financing options, reducing upfront costs.

  • Monitor Local Incentives: Stay updated on state-level policies and net metering, which can complement storage credits and offset the loss of federal solar incentives.


Conclusion

The One Big Beautiful Bill has disrupted the solar industry by ending residential solar tax credits after 2025, but the continued availability of storage credits under Section 48E offers a lifeline. By prioritizing energy storage, installers can maintain affordability, meet customer demand for resilience, and align with long-term industry trends. With the December 31, 2025, deadline looming, installers must act swiftly to integrate storage into their offerings, securing their role in the evolving clean energy market.


Need Support Navigating the New Solar Landscape? Soligent is here to help.

As the industry adapts to the post-OBBB environment, our team is committed to helping installers like you continue closing projects with confidence. From bundled storage solutions and financing options to supplier partnerships and sales enablement tools, we provide the resources you need to succeed in uncertain times.


👉 Contact Soligent today to speak with your local Regional Account Manager or visit www.soligent.net to explore how we can help power your business forward.


Let’s turn uncertainty into opportunity—together.


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