‘Doom and gloom’: NC solar installer fears federal tax bill could decimate business

CHARLOTTE — After 15 years of building 8M Solar into one of the largest solar installers in the Carolinas, owner Ali Buttar fears that momentum could crash by the end of the year.

For the past few years, he said his business has benefitted from federal clean energy tax credits that make residential solar more affordable and incentivize homeowners to generate their own power, off-grid.

Now, in the latest version of the federal reconciliation bill the Trump administration is calling, “The One Big Beautiful Bill,” many of those credits and incentives are set to end in the next six months.

“It is pretty doom and gloom, and we were on a very good trajectory,” Buttar said.

What did these credits do

When the Inflation Reduction Act passed in 2022, it extended a 30% federal tax credit for residential solar, created incentives to establish a domestic solar, EV and battery supply chain and started a number of federal programs aimed at making residential solar more accessible for low-to-moderate income homeowners. In short, it was a boon for businesses like 8M Solar.

“I’ve been in it for 15-16 years. I have not seen that much optimism,” Buttar said.

Battery, EV and solar manufacturing projects were being announced across the country with dozens of projects, billions in investment and tens of thousands of jobs promised in the Carolinas.

As for solar installers, according to data from the Solar Energy Industries Association, 2022 and 2023 were, by far, the busiest years for residential solar installations in North Carolina. Then by 2024, the numbers started to decline.

Net-metering changes went into effect across the state, meaning it would take longer for homeowners to get a return on their solar investment through their energy bills. On top of that, inflation and high interest rates meant fewer homeowners were willing to pay the upfront cost of that investment. Now, Buttar said a provision to eliminate the residential clean energy tax credit in the federal reconciliation bill could decimate the business they have left.

“It’s very difficult to digest all of this, because this will change the complete game plan,” he said.

What’s in the bill

The House version of the bill, which passed in late May, removed nearly all the federal clean energy tax credits over the next few years, in the name of reducing the deficit, repealing “Green New Deal” policies and leveling the playing field for nuclear and fossil fuel development.

In the weeks since its passage, a number of clean energy advocates as well as 13 House Republicans who voted for the bill, urged Senate Republicans to at least extend the sunset period for these tax credits, giving businesses more time to adapt and make good on their investments.

A draft version published by the Senate Finance Committee softened some of those cuts by slightly extending the phase out period for utility-scale wind and solar tax credits but the consumer-facing credits, including the residential solar tax credits are set to end 180 days after the bill is passed.

Fighting for compromise

Stephen Smith, the executive director of the Southern Alliance for Clean Energy, calls the bill a disaster for any business who decided to invest in clean energy in good faith over the past two years.

“To basically [end the credits] in such an abrupt manner is extremely disruptive and creates a great deal of uncertainty and has tremendous financial implications that reverberate throughout the economy and are going to be devastating for our region,” he said.

His organization has been lobbying Sen. Thom Tillis (R-NC), who, for his part, has expressed his own concerns with the impact of removing the federal tax credits. In April, he was one of four Republican senators to sign onto a letter to Majority Leader John Thune calling for the Senate to protect “capital allocation, long-term project planning and job creation in the energy sector” as a result of the clean energy tax credits.

In a statement sent to WSOC last week, Tillis’ office acknowledged the economic importance of these credits and expressed support for a partial extension.

“Senator Tillis is not trying to keep these energy tax credits, but rather phase them out over time so the jobs created and capital invested will not be lost,” The statement said in part.

Tillis’s office has not released an updated statement since the Senate Finance Committee draft became available.

Coping with uncertainty

 For Buttar, the hardest part is not knowing what the business landscape will look like in six months. He said he wants to be honest with customers about how much their installations will cost but with the 30% tax credit up in the air, that number could change by thousands depending on when the project is completed.

“Right now, we’re two-three months out to our install, so we are fine, but toward maybe September, October is when we will try to start figuring this out on how to proceed,” he said.

Should the tax credits sunset by 2025, Buttar expects business to drop off quickly as solar projects grow less and less affordable.

“Our business might drop in more than half,” he said. “I will say we might have to fire more than half of our people, because if you’re not going to have work.”

Buttar said he was never under the illusion that solar tax credits would last forever, but he believes if they do come to an end, it’s only fair businesses like his have enough time to plan.

“I don’t care if it’s Democrats Republicans, everybody has to be on the same page,” he said. “We need a proper line of sight to conduct business.”

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