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With the recent passage of new federal legislation, often referred to as the “Big Beautiful Bill”, and a new Executive Order from the White House, the clean energy landscape is shifting quickly. Here’s what these changes mean for homeowners and commercial property owners in Montana, and why now is the time to move your solar project forward.
Residential Solar: Lock in the 30% Federal Tax Credit
The recently passed legislation maintains the 30% federal residential solar tax credit (Section 25D) through the end of 2025, but does not extend it beyond that point. As it stands today, the credit will expire for expenditures made after December 31, 2025.
The IRS has not yet issued final guidance on what constitutes a qualifying expenditure, so it's unclear whether simply signing a contract or starting a project will be enough. Until further clarity is issued, we recommend the most conservative approach:
- If your solar system is installed and activated by December 31, 2025, you are clearly eligible for the full 30% tax credit.
Given this uncertainty, and increased interest in solar, it’s a smart move to begin the process now to avoid delays and lock in your incentives.
Commercial Solar: Avoid Uncertainty and Start Your Project in 2025
While the residential credit remains straightforward (for now), commercial solar projects face a new wave of potential complications. On July 7, 2025, a new Executive Order was issued titled
"Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources."
This order directs the Treasury Department to:
- Strictly enforce the phase-out of clean energy tax credits, and
- Revise the "beginning of construction" rules, which currently allow developers to “safe harbor” tax credits by incurring a percentage of project costs up front.
New guidance is expected within 45 days of the order, but here’s what we do know:
- Commercial projects that don’t begin in earnest this year may be subject to new regulations, increased financial scrutiny, and potentially higher costs.
In short: starting a commercial project before the end of 2025 could mean the difference between securing current incentives or navigating a more complex, costly process in 2026.
Why Act Now?
Whether you're a homeowner or commercial property owner, this is a critical moment to take action. Starting your project this year gives you the best shot at:
- Securing the tax credit
- Avoiding future regulatory uncertainty
- Ensuring your project is completed on time, before we are booked out well into 2026
At OnSite Energy, we specialize in navigating policy changes and timelines so you don’t have to. Let’s get your project moving while the path is still clear.
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