It is anticipated that President Trump’s One Big Beautiful Bill Act (OBBBA) will raise clean energy project costs by 10-20%, increase the risk of grid shortfalls and raise electricity prices up to 60%. This is due to the elimination and acceleration of many clean energy incentives in the Inflation Reduction Act (IRA) signed into law by President Biden in 2022.

Under the OBBBA, key tax credits for electric vehicles, residential/commercial solar, and battery storage will be phased out between 2025-2027. The rollbacks in the OBBBA would pose immediate planning and financial challenges for the clean energy sector, including solar energy, electric vehicle infrastructure and battery storage.

OBBBA will redefine the economic landscape for clean energy nationally and in New York State. Consumers and businesses will need to act before these valuable tax credits disappear as projects delayed into 2026 or beyond will likely become financially unfeasible.

As it pertains to solar energy installation, the residential solar credit ends December 31, 2025. To claim the 30% credit, systems must be fully installed, connected to the grid and have received permission from the utility company to operate. The elimination of this credit could increase the cost to homeowners by approximately $10,000.

Effective Dec. 31, commercial solar projects would have to begin construction to qualify for the Production Tax Credit and projects would have to be in service by Dec. 31, 2027, as any project missing this deadline forfeits federal support even if started on time.

The Electric Vehicle Charger Credit also ends on Dec. 31 and effective Jan. 1, 2026 EVs using battery components from “foreign entities of concern” such as China will become ineligible for the $7,500 credit.

There are significant ramifications for battery storage systems as effective December 31, 2025 the construction start deadline for the 30% tax credit for standalone and solar-paired storage projects expires. All battery systems must be in service to retain the tax credit which will gradually phase out starting with an 18% credit in 2026, 6% credit in 2027 and 0% in 2028.

Finally, according to the New York Independent System Operator (NYISO) 2025 Power Trends report, over the past five years the electricity supply has lost 5,207 MW of fossil-fired capacity while gaining only 2,256 MW of renewables. This is occurring just as large industrial and data center loads will be coming online resulting in a significant narrowing of reliability.

The elimination of these incentives and tax credits will significantly impact New York’s goals to achieve the Climate Leadership and Community Protection Act (CLCPA).

It is imperative that New York State leaders and energy policy officials step back and assess the impacts of the passage of the OBBBA on the CLCPA. Such a review provides an opportunity for the state to finally develop a road map and plan to achieve the CLCPA mandates which do not exist.

Michael Casciano is president and chief operating officer of NOCO Energy.