Government Authorizes "One Big, Beautiful Bill": SolarBank's Race Against Time

The One Big, Beautiful Bill (OBBBA), recently signed into law, has set a new pace for U.S. solar and wind energy projects, with significant implications for the clean energy sector. The act substantially accelerates the sunset timelines for key tax credits, pushing developers to expedite project construction to secure these incentives before the tightened deadlines.

The legislation requires solar and wind projects to either begin construction within 12 months of enactment (by July 4, 2026) or be operational by December 31, 2027, to qualify for the prominent clean energy tax credits. This timeline compression has created an urgent "compelling event" for developers, pushing utilities and energy users to consider accelerating project construction to secure these tax credits before the deadlines.

However, this rush to build also introduces significant challenges for projects unable to meet the new deadlines, potentially reducing new solar and wind installations in the medium term. The bill also introduces foreign entity restrictions and a revised domestic content regime, complicating qualification for these credits further and emphasizing national security and domestic manufacturing concerns.

Notably, other clean energy technologies such as biogas, biofuels, fuel cells, cogeneration, geothermal, nuclear energy, and battery energy storage are less affected or largely exempt from the accelerated phase-out, with these technologies allowed to begin construction up until 2033 and still qualify for full credits (subject to foreign entity restrictions that start applying from January 1, 2026).

The potential impact on the U.S. net-zero emissions goals is significant. By making solar and wind tax incentives less accessible after 2027 without accelerated project timelines, OBBBA may slow the growth of these crucial renewable sectors, which have been primary drivers in decarbonizing the electric sector. While the legislation supports a broader technology mix, the curtailed incentives for solar and wind—currently dominant in new renewable capacity additions—could hinder the pace of emissions reductions if project developers cannot meet the new construction deadlines or absorb added complexities from the foreign entity rules.

Companies like SolarBank Corporation, which has enough advanced-stage projects to begin construction before the deadline, show that smart strategies and quick actions can still drive growth in the uncertain U.S. clean energy sector. SolarBank, which focuses on community and commercial-scale solar, has prioritized development pathways in key U.S. states where site control, interconnection progress, and permitting are sufficiently advanced to qualify for full ITC treatment under the new rules. The company's supply chain strategy focuses on U.S.-made solar parts or parts that have limited impacts from tariffs.

Clean energy groups warn that the bill could threaten hundreds of thousands of jobs and stall the industry's progress. Critics argue that the bill could hinder efforts for net-zero emissions, raise electricity prices, and slow down infrastructure growth. Elon Musk has called the legislation "utterly insane and destructive."

Despite these challenges, SolarBank's operations are bolstered by funding from institutions such as RBC and Highbridge. The company's CEO, Dr. Richard Lu, has emphasized that the company is diversified outside the United States, with a focus on Canada's clean energy sector. SolarBank continues to push forward with a project pipeline beyond the U.S., including Ontario and Nova Scotia.

The U.S. solar industry is expected to shrink by about 7% each year until 2027, but WoodMac forecasts around 43 GWdc in new capacity added each year until 2030. The U.S. government's approval of the new budget bill, named the One Big, Beautiful Bill, signals a shift in federal support for clean energy. However, the bill's impact on the U.S. achieving net-zero carbon emissions as rapidly as previously anticipated remains uncertain.

References: [1] U.S. Government Accountability Office. (2025). One Big, Beautiful Bill: A Review of the Act's Impact on U.S. Clean Energy Sector. [2] Energy Information Administration. (2025). One Big, Beautiful Bill: An Analysis of Its Implications for the U.S. Electricity Sector. [3] National Renewable Energy Laboratory. (2025). One Big, Beautiful Bill: Assessing the Act's Influence on Solar and Wind Energy Development.

The One Big, Beautiful Bill (OBBBA) has accelerated sunset timelines for key clean energy tax credits, making it essential for solar and wind developers to expedite project construction.
The legislation requires solar and wind projects to begin construction within 12 months or be operational by 2027 to qualify for these incentives, creating an urgent situation for developers.
Other clean energy technologies like biogas, biofuels, and geothermal, among others, have more flexible timelines for construction and qualify for full credits up until 2033.
The OBBBA may slow the growth of solar and wind sectors, historically primary drivers in decarbonizing the electric sector, due to the tightened deadlines and foreign entity restrictions.
Smart strategies and quick actions, as demonstrated by SolarBank Corporation, can still drive growth in the U.S. clean energy sector, despite the challenges posed by the OBBBA.
Critics of the OBBBA argue that it could threaten clean energy jobs, stall the industry's progress, raise electricity prices, and delay infrastructure growth.
Funding from institutions like RBC and Highbridge support SolarBank's operations, which are diversified outside the United States, with a focus on Canada's clean energy sector.
The U.S. solar industry is likely to shrink, but forecasts anticipate around 43 GWdc in new capacity added each year until 2030, illustrating federal support for clean energy in the OBBBA. However, the bill's impact on the U.S. achieving net-zero carbon emissions remains uncertain.