By Christa Marshall – E&E News
Published July 11 2025
One of the biggest casualties of Republicans’ megalaw may be rooftop solar, setting up a downturn that could change the makeup of the grid in multiple states.
The package signed by President Donald Trump on July 4 broadly hits Inflation Reduction Act incentives, but the effect on rooftop solar could be more severe than on many other renewables.
That’s because tax credits that built the industry over the past two decades are being phased out by the end of the year, faster than other parts of the solar sector, according to analysts. The residential solar industry also was already under strain because of factors such as lingering high interest rates and recent pullbacks on incentives in California and other states.
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Among the beneficiaries was Brooklyn SolarWorks, one of the largest solar installers in New York City. More than 85 percent of the company’s sales are tied to the tax credit, which is known as 25D for its place in the tax code, said Gaelen McKee, president and founder of the company in an interview.
There likely would be layoffs from the 80-person staff next year, he said, when industry installations would fall off a cliff.
“The little guy gets squeezed again,” said McKee about the effects of the law.
Brooklyn Solarworks is among the companies that may fare better than others, considering the wealth in New York City and support from local and state governments, according to McKee of Brooklyn SolarWorks. New York City has a property tax abatement for solar users, he said.
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