High Level

It goes without saying that community solar, and the entirety of the renewable energy industry, faced significant policy turbulence last week. The most consequential development came at the federal level, where President Trump signed the One Big Beautiful Bill (OBBB), imposing strict domestic content mandates, new excise taxes, and reduced tax-credit construction timelines. While investment and production tax credits remain, the rules to claim them are now narrower and more expensive. Meanwhile, Michigan advanced a major policy milestone of its own by formally enabling community solar through the MAGA Solar Act, though that law includes market caps and other constraints. Together, these developments reflect an inflection point: community solar remains politically viable, but only with strategic trade-offs and executional discipline.

Full View

Trump Signs OBBB With Major Clean Energy Implications

·       What happened: On July 4, President Trump signed the One Big Beautiful Bill (OBBB) into law, cementing a sweeping overhaul of federal clean energy policy.

·       Who did it: President Trump, following narrow passage in both chambers of Congress.

·       Why they did it: The bill was pitched as a cornerstone of Republican economic and industrial strategy, redirecting incentives away from broad renewable deployment and toward domestic manufacturing and U.S.-sourced infrastructure.

·       Stakeholder views:

•         CCSA called the law “irrational and punitive,” warning it “jeopardizes billions in private investment and kills hundreds of thousands of American jobs.”

•         Abigail Ross Hopper (SEIA): “It strips the ability of millions… to choose energy savings, resilience, and energy freedom.”

•         Politico reported that Trump’s support was tied to demands from conservative House members to “crack down on renewable energy credits.”

•         PV Magazine editorialized that the bill “threatens solar growth, manufacturing, and investment.”

·       What happens next: SEIA and CCSA have pledged to pursue clarifications, safe harbors, or subsequent legislative adjustments. Developers are reassessing procurement, tax credit strategy, and project viability.

OBBB Key Solar Provisions

  • ITC/PTC retained, but with reduced phase-down rates
  • 2–4% excise tax on imported solar equipment that fails domestic content standards
  • Strict sourcing mandates for panels, inverters, and other system components
  • Shortened construction-start window (from 4 years to 2 years) for tax credit eligibility
  • No grandfathering for in-flight community solar projects under earlier rules

Michigan Republicans Advance MAGA Solar Act, Creating New Pathway for Shared Solar

·       What happened: The MAGA Solar Act advanced out of committee in the Michigan Legislature. It establishes a statewide community solar framework and supports agrivoltaics, while also capping solar penetration at 20%, requiring local zoning approval, and banning panels sourced from China.

·       Who did it: Led by Rep. Greg Markkanen (R-MI) and 21 co-sponsors; received bipartisan support in committee.

·       Why they did it: The bill reflects a conservative approach to solar policy—focused on consumer choice, energy independence, and domestic production.

·       Stakeholder views:

•         Jeff Cramer (CCSA): “The bill looks pretty solid from a community solar perspective… customers are going to save [on bills].”

•         Douglas Jester (5 Lakes Energy): “Capping solar growth at 20% seems counterproductive in a state that’s already falling behind on renewables.”

•         Nora Naughton (Sierra Club Michigan): “Removing any options… would certainly make it harder [to reach 100% clean energy by 2040].”

•         Katie Carey (Consumers Energy): “Not only does this force nonparticipating customers to pay more… community solar subscribers avoid paying their fair share.”

·       What happens next: The bill is pending full floor votes and potential amendments. If enacted, it could become a blueprint for solar expansion in states with similar political leanings.

What’s the So What?

Now is not the time to mince words: the OBBB will kill projects, it will kill companies, and it will do significant and possibly irreparable harm to the energy industry. It’s bad for renewables, it’s bad for Americans, and it’s bad for America.

While the bill preserves investment and production tax credits, it guts their practical value through punitive sourcing mandates, a surprise excise tax on non-compliant equipment, and unrealistic construction deadlines. These measures don’t just complicate financing, they obliterate it for many community solar developers who were already operating on tight margins and timelines. In-flight projects will cease to pencil. Future pipelines will shrink. Access to clean, distributed energy will narrow.

However, a dim glimmer of hope emerges from the Midwest with Michigan’s MAGA Solar Act. It establishes a formal structure for community solar where none existed before. While its caps, siting rules, and trade restrictions pose serious limitations, it proves that shared solar still resonates in conservative policy spaces, if framed around grid resilience, local choice, and energy savings.

But viewed together, the national signal is unambiguous: solar’s policy footing is eroding. Federal support is no longer a given. State-level wins may grow, but only with compromises. Going forward, survival depends not just on policy alignment, but executional speed, political literacy, and local credibility.

To remain viable, developers must:

  • Rebuild procurement to align with domestic content thresholds
  • Compress development timelines to secure remaining tax credits
  • Frame projects in bipartisan, populist language around savings and sovereignty
  • Forge alliances with local governments, ratepayer advocates, and economic development coalitions
  • Prepare for a development environment that punishes indecision and rewards agility

The community solar industry doesn’t just need better rules—it needs sharper operators. The policy window is still open, but from now on, nothing comes easy.

Bibliography