The Solar Deadline Looms: Why 3 Months doesn’t cut it

In our Last blog, we discussed a piece of legislation that threatened to sunset the 30% solar tax credits. Well, a few months later, that threat is no longer theoretical—it's a fast-approaching deadline.

The good news? If you’ve already signed up with us for 2025, you’ve made a wise decision not to wait until the last minute. If you're still undecided about going solar or are shopping around you need to read this carefully.

That 3 month project timeline for residential projects is about to merge into serious rush hour traffic.

Here's why the end-of-year solar rush is a logistical nightmare waiting to happen. 

The Ticking Clock of the Calendar

·         The "Placed in Service" Trap: The IRS is a stickler for rules, and the language around the ITC is clear. The tax credit is yours only when your system is "placed in service," which is traditionally defined as the point when the final inspection is passed by the local Authority Having Jurisdiction (AHJ) or when the utility company issues permission to operate (PTO). To make it even more complicated, the project must also be paid in full in the calendar year for you claim the credit.

·         A Contractor's Hands Are Tied: In California, licensed contractors can't bill for work that isn't finished. That means we can't get your final payment until the installation is complete, putting you in a tight spot at year-end. You can’t pay, and we can’t get paid, until the final inspection is complete. It’s a game of chicken with the clock, and the clock is not on your side.

The Holiday Logjam

You're already planning for Thanksgiving and the end-of-year holidays. So are inspectors. So is PG&E. And so is every other solar company in the state.

·         Inspection Slowdown: The period between Thanksgiving and New Year's is a prime time for sick days, vacation, and general holiday slowdown. This is going to slow down final inspection scheduling, period.

·         The Floodgates Open: Every single solar company and every single customer with a project in progress will be climbing over each other to get their final inspection and PTO requests processed in the last few weeks of the year. This inundation will slow down the entire system for everyone.

·         PG&E Won't Save You: Don’t expect PG&E to suddenly "hire up" a stack of new staff to handle the incoming flood of PTO requests. They’ll process them in the order they're received, and past years have shown that an excessive amount of requests slows the process for everyone.

Beware of Promises from Small Companies

There’s very little at stake for a smaller solar company to promise you a December 31 installation right now. But when a project inevitably runs into a delay and a customer misses the deadline, those companies will be left with a flood of bad reviews and angry clients—and a reputation in tatters.

Here's an even bigger problem: once the current backlog of projects is gone, small solar companies are going to struggle. They can't offer Power Purchase Agreements (PPAs), which will be one of the only ways to qualify for the 30% solar ITC moving forward. PPA Investor Companies want to work with medium to large installers who can provide the volume they need. The bottom line? Smaller companies are likely to go out of business once their current workload is complete.

The Smart Bet: Choose a Partner, Not Just an Installer

All of this points to a single, critical decision you need to make right now: who you partner with.

In this environment of legislative uncertainty and logistical chaos, you need a reputable, well-established company with a strong history of solid business. You need a company with a strong backlog of work to weather the storm, and the industry connections to keep offering great solutions like PPAs.

That's why we are in the final stages of onboarding with an industry-leading PPA Partner. We're not just here for a quick project—we're here for the long haul. We'll be able to continue providing the benefits of solar to you and your neighbors, no matter what curve balls the legislature throws our way.

Stay tuned—more to come!