{"id":85,"date":"2026-01-21T16:45:00","date_gmt":"2026-01-21T16:45:00","guid":{"rendered":"http:\/\/demo.mysterythemes.com\/news-portal-pro\/?p=85"},"modified":"2026-01-22T04:41:04","modified_gmt":"2026-01-22T04:41:04","slug":"solar-shift-anticipated-but-no-slow-down-after-tax-credit-dries-up-according-to-local-company","status":"publish","type":"post","link":"https:\/\/montrosebusinesstimes.com\/es\/solar-shift-anticipated-but-no-slow-down-after-tax-credit-dries-up-according-to-local-company\/","title":{"rendered":"Solar shift anticipated; but no slow-down after tax credit dries up, according to local company"},"content":{"rendered":"

While the end of the federal solar tax credit capped a busy year for installers, local companies say it marks less of an ending than a shift \u2014 one that is changing how solar is priced, financed and offered to customers.
\nThe credit, formally known as the Residential Clean Energy Credit, allowed homeowners to deduct 30 percent of the cost of a residential solar installation from their federal income taxes. That incentive expired Dec. 31, 2025, under federal law, with no phase-down period.
\nTo qualify, systems had to be fully installed and placed into service by the end of the year \u2014 a requirement that effectively made November the practical cutoff for many homeowners, since most residential installations take more than two months from contract to completion.
\nThe looming deadline triggered a late-year rush across the industry, as customers scrambled to secure projects before the credit disappeared. But according to Atlasta Solar Center, the change has been less about a slowdown in demand and more about how solar companies are adapting now that the incentive is gone.
\nMatt Fowler, co-owner of Atlasta Solar Center, said the company stopped guaranteeing installations would qualify for the credit as early as August, once it became clear how quickly its schedule was filling.
\n\u201cWe were booked through the end of the year in August,\u201d Fowler said. \u201cThat\u2019s when we stopped promising customers we could get their solar installed within 2025.\u201d
\nFowler said Atlasta deliberately avoided over-promising work it could not complete in time for the credit, even as demand surged late in the year.
\n\u201cThere were a lot of companies that really tried to squeeze in as much as they could,\u201d he said. \u201cWe\u2019ve barked up that tree before, and we\u2019ve gotten so busy that we got overwhelmed. We didn\u2019t do that this year. We were very prescriptive and proactive about what we were actually able to do.\u201d
\nDespite that restraint, Fowler said 2025 was Atlasta\u2019s strongest year yet in terms of installation volume.
\n\u201cWe did more installations last year than we\u2019ve done any other year,\u201d he said. \u201cThat\u2019s a testament to us being better able to operate.\u201d
\nStill, Fowler pushed back on the idea that the tax credit\u2019s expiration marked a peak for the industry. He said 2025 was not the company\u2019s biggest year historically, and that demand remains strong heading into 2026.
\n\u201cWe honestly anticipate doing as much, if not more, this year,\u201d Fowler said. \u201cWe\u2019re still booked into March, and that\u2019s without having the tax credit to sell.\u201d
\nThe end-of-year rush was felt well beyond Montrose. National solar industry data shows installations surged ahead of the deadline, as homeowners nationwide sought to qualify before the credit expired.
\nLocally, some homeowners missed out simply due to timing. One Montrose-area resident, who declined to be named, said they were told by November it was already too late to qualify for the credit.
\n\u201cI was told by November it was too late to get the tax credit,\u201d the homeowner said.
\nThat assessment was accurate for many customers, not just locally but everywhere.
\n\u201cThe system had to be installed,\u201d he said. \u201cIt couldn\u2019t just be started. That\u2019s what the tax guidance was.\u201d
\nFor homeowners who qualified, the credit often represented a significant savings. Fowler said the typical benefit ranged from about $3,500 to $5,000, depending on system size, with larger installations saving more.
\nBut Fowler said the tax credit was never a universal solution \u2014 and in some cases, it excluded people entirely.
\n\u201cThere are a number of customers that have been alienated from the solar market because they couldn\u2019t use the tax credit,\u201d he said. \u201cIf you don\u2019t have federal income tax liability, the tax credit\u2019s no good to you.\u201d
\nWith the federal incentive gone, Fowler said the solar<\/p>

<\/a><\/div>\n

industry is shifting toward alternative financing and ownership models \u2014 a transition that was already underway before the credit expired.
\n\u201cThe model for solar is changing,\u201d he said.
\nAtlasta is increasingly offering prepaid leases, power purchase agreements and traditional leases, alongside direct purchases. Under some of those structures, customers can receive roughly 20 percent off the cost of solar upfront, rather than paying full price and waiting for a tax refund.
\n\u201cThe customer pays less for their solar on day one than they would have if they were to get the tax credit and then wait for that money back,\u201d Fowler said.
\nThose arrangements rely on third-party system ownership, allowing commercial entities to take advantage of federal incentives that are still available to them \u2014 savings that can be passed on to customers.
\nFowler emphasized that not all leases and power purchase agreements are the same, warning homeowners to pay attention to contract details such as rate escalators, which can cause monthly payments to rise over time.
\n\u201cSome of those products out there are designed to get you hooked,\u201d he said. \u201cWe try to stay away from that.\u201d
\nEven without owning a system outright, Fowler said customers still benefit from lower energy costs \u2014 and in some cases, avoid maintenance responsibilities altogether.
\n\u201cYou don\u2019t really need to own the solar,\u201d he said. \u201cYou\u2019re getting the benefit without owning it, and if something breaks, someone else is on the hook to fix it.\u201d
\nWhile the federal solar credit has expired, some incentives remain. Colorado offers a 10 percent state income tax credit for the purchase of residential battery storage systems. Homeowners who already have solar can still qualify for that credit by adding a battery.
\nBattery demand has increased, Fowler said, particularly as residents look for backup power and resilience.
\nOther programs, such as utility-run incentives through Xcel Energy, exist but come with limitations.
\n\u201cThose programs run out of money,\u201d Fowler said. \u201cWe\u2019ve had customers get stuck at the back of the line, and then the funding shuts off before they can get going.\u201d
\nAs a result, Fowler said Atlasta often advises customers not to rely on utility incentives when planning a project.
\nBroad federal policy shifts are also continuing to influence how companies plan for clean energy projects. In late 2025, industry analysts reported that developers and manufacturers are preparing for new foreign-entity-of-concern (FEOC) guidance from the U.S. Treasury Department \u2014 rules tied to the 2025 tax reform law that could affect eligibility for certain federal tax credits by tightening sourcing and supply-chain requirements under the broader clean energy tax code. That guidance is expected early in 2026, and companies are already auditing supply chains and contracts to comply once it\u2019s finalized.
\nLooking ahead, Fowler said additional electrification incentives \u2014 including rebates for heat pumps and electric vehicle chargers \u2014 may play a growing role, even as solar incentives narrow.
\nUltimately, Fowler said the economics of solar remain compelling, regardless of ownership structure.
\n\u201cSolar saves you money,\u201d he said. \u201cIf you put it on your roof, you\u2019re going to save money. How much you save \u2014 that\u2019s what changes.\u201d<\/p>\n

Justin Tubbs is the Montrose Business Times editor. He can be reached by email at justin@montrosebusinesstimes.com or by phone at 970-765-0915 or mobile at 254-246-2260.<\/p>","protected":false},"excerpt":{"rendered":"

While the end of the federal solar tax credit capped a busy year for installers, local companies say it marks less of an ending than a shift \u2014 one that is changing how solar is priced, financed and offered to customers. The credit, formally known as the Residential Clean Energy Credit, allowed homeowners to deduct […]<\/p>\n","protected":false},"author":2,"featured_media":357,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,21],"tags":[],"class_list":["post-85","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news"],"yoast_head":"\nSolar shift anticipated; but no slow-down after tax credit dries up, according to local company - Montrose Business Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/montrosebusinesstimes.com\/es\/solar-shift-anticipated-but-no-slow-down-after-tax-credit-dries-up-according-to-local-company\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Solar shift anticipated; but no slow-down after tax credit dries up, according to local company - Montrose Business Times\" \/>\n<meta property=\"og:description\" content=\"While the end of the federal solar tax credit capped a busy year for installers, local companies say it marks less of an ending than a shift \u2014 one that is changing how solar is priced, financed and offered to customers. 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