Station A | Blog

The Solar ITC Is Ending Sooner Than You Think — Here's What Buyers Need to Know

Written by Albert Ching | 2025-07-15

July 2025 ushered in a surprise policy shift that could reshape the economics of clean energy projects across the U.S. The One Big Beautiful Bill (BBB) is phasing out the Investment Tax Credit (ITC) much faster than expected—putting timelines, returns, and equipment strategies into sudden focus for buyers and providers alike. If you're planning or funding solar projects, here's what you need to know—and how Station A can help.

🚨 What Just Happened?

The BBB dramatically accelerates the ITC sunset. While the 30% ITC is still technically available through the end of 2027, the rules have changed—and the practical deadline is now December 31, 2025 for most buyers.

Why? After that date, projects face:

  • Foreign Entity of Concern (FEOC) restrictions, which will likely disqualify equipment sourced from China

  • Strict new requirements around construction start and a potential elimination of the “5% safe harbor” pathway that many projects have historically relied on

The Department of the Treasury is expected to issue final guidance by August 18, 2025, but the direction is clear: if you want the ITC, you need to move fast.

📅 The New Timeline

To meet these eligibility dates for a project, we recommend listing a project on our marketplace no later than October 31, 2025 (Halloween).

🧠 What Buyers Are Doing Now

We're already seeing forward-thinking buyers:

  • Lock in contract terms for all projects in their pipeline

  • Stockpile eligible equipment (panels, inverters, racking) to preserve ITC access

  • Move faster than ever before to protect project returns

Well-resourced providers are doing the same. This is triggering greater competition for developers who can act quickly, secure compliant materials, and meet the deadline. Even previously agreed-on terms may now be subject to change as the market reacts to increased legal and financial risk.

🤷‍♀️ What We Still Don’t Know

Uncertainty remains around:

  • Treasury definitions of “construction start” and FEOC enforcement

  • Whether bonus ITCs (e.g. domestic content, energy communities) still apply

  • How MACRS depreciation or state-level incentives might shift

  • How tariffs or equipment shortages might affect pricing and supply

  • How electricity prices will increase as a result of expected increases in AI-driven demand
  • Whether Congress or the next administration will restore the ITC

📉 How Much Is at Stake?

Losing the 30% ITC can reduce a project’s IRR by 3–6%, potentially eliminating 25% of otherwise viable sites.

So no—the solar market isn’t going away. But if you want to hit your cost or return targets, you need to get ahead of the policy curve.

💡 How Station A Can Help

Act with speed—and certainty. Station A equips you with real-time market data and procurement tools to evaluate, launch, and award projects fast. Here’s what we offer:

  • Live market intelligence, not static spreadsheets

  • Portfolio-wide insights into which projects should move first

  • A full competitive bidding process—from listing to shortlist to award—in just 4 weeks

  • We vet providers to ensure they can meet the new ITC eligibility rules

Whether you're deploying capital or managing a large portfolio, we'll help you move quickly and confidently in this shifting policy landscape.

👋 Let’s Talk

If you're unsure whether your projects still qualify, or want to start a competitive process before time runs out.