Disseminated on behalf of SolarBank Corporation
The U.S. government has approved a sweeping new budget bill, dubbed the “One Big, Beautiful Bill”, signalling a significant shift in federal support for clean energy. Senate Republicans, aligned with former President Trump’s energy plan, support the bill. It removes the excise tax on renewable energy. However, it hurts solar and wind development by cutting the timeline for key tax credits drastically.
Elon Musk: The “Utterly Insane and Destructive” Bill
Industry experts have quickly raised alarms over the bill’s long-term implications. For years, solar and wind developers have relied on stable federal tax incentives to finance and scale their projects.
The new law requires clean energy developers to either begin construction by July 4, 2026 (in which case there will be four years to complete the project) or if construction begins after July 4, 2026, the projects must be operational running by December 31, 2027 to get the Investment Tax Credit (ITC) and Production Tax Credit (PTC). The clean energy sector, particularly in the U.S., now finds itself racing against the clock.
Critics say the bill would hurt efforts for net-zero emissions. It could raise electricity prices and slow down infrastructure growth. This comes when the country is seeing high demand from AI, electrification, and data centers.
Tesla CEO Elon Musk called the legislation “utterly insane and destructive.” Clean energy groups warn it could threaten hundreds of thousands of jobs. They say it may also stall the industry’s progress when it was just gaining momentum.
The bill passed quickly through the Senate, despite its controversy. This showed a clear partisan split over America’s energy future. And it has also been passed in the House and was signed into law.
Fossil fuel subsidies stay mostly the same, while the bill creates a tougher future for clean energy developers. Companies must adapt quickly to changing rules.
The bill’s key solar-related changes:
- Ends the 30% residential solar tax credit by December 2025—nearly 10 years earlier than expected.
- Requires solar and wind projects to either begin construction by July 4, 2026 (and be online within four years) or begin construction after July 4, 2026 and be online by December 31, 2027 to qualify for commercial tax credits.
SolarBank’s Bright Strategy in a Dark Policy Era
The U.S. solar industry may face challenges with those policy changes, but SolarBank Corporation (NASDAQ: SUUN) shows strong resilience and a clear strategy.
SolarBank has enough advanced-stage projects that we can get into construction before the deadline to take advantage of the tax credits. In particular, there is still enough time to execute on the projects supported by the $100 million financing with CIM. In addition, it focuses on community and commercial-scale solar. These segments gain more from state-level incentives and local energy policies than from federal programs.
The latest Q2 2025 report from Wood Mackenzie and SEIA shows the U.S. solar industry is shrinking. There was a 7% drop in installations compared to Q1 2024. The community solar segment—SolarBank’s focus—saw a 22% decline in quarterly installations, but this came after a record-setting end to 2024.
Analysts believe the segment will stabilize in key markets like New York, where plenty of Solarbank projects are located, and Illinois. These states have nearly 5 GWdc in pipeline projects combined.
The report warns that changes in federal policy, tariffs on Southeast Asian parts, and the early end of tax credits are causing uncertainty. However, state-level programs and corporate demand remain strong growth drivers.
SolarBank focuses on community and large-scale projects. This is supported by steady regional programs and varied supply sources. These factors give it an advantage in today’s unstable climate.
The U.S. solar market may drop by about 7% each year until 2027. However, WoodMac forecasts around 43 GWdc in new capacity added each year until 2030. This shows a long-term chance for strategic players such as SolarBank.
The Company has prioritized development pathways in key U.S. states where site control, interconnection progress, and permitting are sufficiently advanced to qualify for full ITC treatment under the new rules. The $100 million in project-level capital announced through a strategic partnership with CIM Group provides much of the capital to allow SolarBank to move swiftly toward construction on a 97 MW portfolio in these high-value markets.
The company’s CEO, Dr. Richard Lu, has also emphasized that SolarBank is diversified outside the United States. He stated:
“SolarBank benefits from Canada’s support to clean energy… and is leading the charge to build Canada as an energy superpower.”
He pointed to Prime Minister Mark Carney’s “Build, baby, build” initiative—Canada’s new fast-track push for infrastructure, housing, and energy development—as a major accelerant for clean energy developers with shovel-ready assets.
SolarBank focuses on community solar in more than 20 U.S. states. It also expands its portfolio with projects in Canada. This strategy helps reduce risks from sudden policy changes.
Thanks to this foresight, the company announced a big 2.4 MWdc solar project in Nova Scotia last month. It’s expected to power over 220 homes. The news sent shares of SUUN up by nearly 28%, as investors recognized the strength of its cross-border growth strategy.
Built to Weather the Shift: SolarBank’s Vertical Edge
SolarBank stands out from residential solar installers. While they struggle with the early ITC sunset, SolarBank uses a build-to-own model. This vertical integration helps SolarBank thrive. This lets the company control development, construction, and maintenance better. It also helps generate long-term revenue by owning assets.
The model also acts as a buffer against rising costs or policy changes. It lessens dependence on short-term sales and federal subsidies.
SolarBank’s operations are further bolstered by a strong financial foundation. In its last quarterly report, the company reported over $25 million in cash and $45 million in current assets. This was backed by funding from institutions such as RBC and Highbridge.
The company’s supply chain strategy focuses on U.S.-made solar parts or parts that have limited impacts from tariffs. This choice helps it navigate new tariffs on foreign-made equipment.
While much of the U.S. solar market is re-evaluating its projects in light of the new law, SolarBank continues to push forward. It’s building a project pipeline that goes beyond the U.S. It includes areas like Ontario and Nova Scotia, where clean energy policies are stable and supportive.
As the broader industry adjusts to a compressed tax credit timeline and shifting political winds, SolarBank has emerged as a case study in proactive planning and policy-proof execution.
A Defining Moment for U.S. Solar — And a Strategic Opportunity
The “One Big, Beautiful Bill” may mark a turning point for the U.S. clean energy sector. With long-term tax credits now set to expire much earlier, solar developers must act fast or risk losing vital financing tools. The change should speed up project timelines. However, it might also cause cancellations, bottlenecks, and funding gaps. This is especially true for residential and large utility-scale projects.
In this uncertain environment, companies like SolarBank show that smart strategies and quick actions can still drive growth. The company provides a strong model for investors, policymakers, and communities.
In the U.S. clean energy transition, the winners will be those who act fast, diversify smartly, and create solar solutions that can handle Washington’s politics. And right now, SolarBank is showing what that looks like in action.
There are several risks associated with the development of the projects detailed in this report. The development of any project is subject to the continued availability of third-party financing arrangements for the project owners and the risks associated with the construction of a solar power project. There is no certainty the projects disclosed in this report will be completed on schedule or that they will operate in accordance with their design capacity. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic.
Please refer to “Forward-Looking Statements” in the press release entitled “SolarBank Issues Update on Strategic Positioning Amid Shifting U.S. and Canadian Policy Landscape” for additional discussion of the assumptions and risk factors associated with the statements in this report.
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