Solar at a Crossroads: Navigating Uncertainty in the Clean Energy Transition

Solar at a Crossroads: Navigating Uncertainty in the Clean Energy Transition

The latest installment in the American Sustainable Business Network’s (ASBN) members-only webinar series, The Policy Forum, covered the critical topic “Solar at a Crossroads: Navigating Tax Credits, Tariffs, and Your Bottom Line,” examining the current volatility impacting the solar energy sector. The discussion was moderated by Louis Tierno, Director of the Pennsylvania Sustainable Business Network (PASBN). It featured guest speakers Ed Detwiler from NPC, a business that has adopted solar, and Jon Bunyaratapan from Envinity, a solar developer.

Both Detwiler and Bunyaratapan address the instability and uncertainty created by the current Administration’s policy changes, specifically regarding tariffs and tax credits, which make planning and justifying Return on Investment (ROI) difficult for businesses in the current policy landscape.

The Business Perspective: NPC’s Solar Journey and Challenges

NPC is a Print and Digital Communications Company based in Blair County, Pennsylvania, employing about 500 people across four locations. Their primary clients include federal and state government agencies requiring high security and accountability. NPC has a long-standing commitment to being good stewards. In 2022, they signed on with the Carbon Disclosure Project to measure and reduce greenhouse gas emissions through process improvements, energy efficiency, and purchasing carbon offsets and RECs.

In 2024, NPC signed a contract with Envinity for a 2.4-megawatt solar installation at their 200,000-square-foot headquarters building, expected to cover approximately 40% of its electricity use. This project also includes roof recoding and HVAC unit upgrades. Detwiler explains that a project of this size would not have been undertaken without the “critical” assistance received by NPC, including tax credits, a REAP Grant, and Act 129 incentives.

With many programs to incentivize clean energy currently on the chopping block in Congress, including the vitally important clean electricity tax credits established by the Inflation Reduction Act (IRA), businesses are facing increased risk.

The current uncertainty regarding tax credits means if things “fall through,” if they are suddenly no longer eligible for tax credits or if certain grant programs are cut without warning, NPC could still fund the project, but at the expense of other capital improvements like equipment upgrades or R&D for new markets, which would have positioned them for growth. The unpredictability makes it difficult to entertain new initiatives and accurately plan for the future. NPC had planned to explore solar for their other three facilities after the headquarters project, but this is not a viable financial decision until clarity emerges on the future certainty of tax credits and grant programs for clean energy.

Another primary concern for companies, including NPC, is new and shifting tariffs imposed over the past several months by the current Administration. While NPC acquired some panels early to meet the requirements for being grandfathered in and mitigate dramatic changes in availability and price, the impact of tariffs on the rest of the necessary materials remains uncertain due to delays in policy decisions that will impact interconnection, ie, connecting solar to energy grids. These decisions lack the needed transparency for businesses, thus posing an additional risk of uncertainty that compounds with the fluctuating policy changes.

The Developer Perspective: Envinity’s Approach Amidst Volatility

Jon Bunyaratapan represents Envinity, a 20-year-old company specializing in Engineering, Procurement, and Construction (EPC) for solar projects, covering everything from concept to installation, operation, and service. They operate across the majority of the state of Pennsylvania and have experience assisting companies in navigating the fluctuating policies involving solar projects.

Bunyaratapan explains that some companies have been waiting for final legislative language on the budget reconciliation bill, also referred to as the President’s “One Big Beautiful” bill, from Washington before proceeding with projects. Others, like NPC, have secured materials to achieve “Safe Harbor,” allowing them to claim the current 30% tax credit by securing 5% of materials.

The Big and Not-So-Beautiful Effects of the Reconciliation Bill on Solar

At the time of the webinar on June 26, 2025, the Senate version of the reconciliation bill proposed reducing the commercial clean energy credit (48E) to 18% in 2026 and 6% in 2027. In the final version of the bill that was passed by the House and signed into law on July 4th, 2025, a placed-in-service requirement has been introduced, meaning that commercial solar projects that begin more than one year after the law is enacted must be fully operational by December 31, 2027, to qualify for credits. The “safe harbor” remains for projects that begin construction within one year, extending the qualification period to four years to be placed in service. These changes, along with stricter domestic manufacturing and “Foreign Entity of Concern” requirements for materials, make clean electricity tax credits much more difficult to navigate.

The stakes of reduced or lost tax credit incentives are not just from a project perspective but also from a manufacturing perspective. “The IRA allows for onshoring domestic manufacturing and billions of dollars of investments in both blue and red districts,” Bunyaratapan explains. “Making investments in facilities that want to do business and set up facilities in the US to produce clean energy components is exactly what we need to remain competitive in the global landscape.”

Lingering Impacts of Changing Policy

Policymakers may not fully understand the impact of policy decisions on businesses and their operations, as these decisions can limit the available tools for energy independence and make businesses less competitive. While some clarity may have come with the passage of the sweeping budget reconciliation bill, it is plausible that this uncertainty will linger in the financial and business decisions of many companies. This is especially true for businesses like NPC, which experienced rapid changes in financial analysis once they committed to their solar project.

Envinity’s approach to the changing landscape is case-by-case, comparing utility rates against solar generation and factoring in grants and financing strategies. Pennsylvania has relatively cheap electricity compared to states like California or Hawaii, making incentives more crucial.

Meeting the Moment: Navigating the Future of Solar

For businesses that want to continue supporting solar projects, experts encourage business leaders to seek trusted, reputable solar developers, move from conversations about the benefits of solar to action, advocate for incentives, work to create stability at the state and local levels, and support state-level initiatives.

This is a very crucial moment for solar. The goal is to maintain momentum and ensure that businesses can continue to adopt solar, benefiting their bottom line and contributing to energy independence. The collective voice and actions of the business community are vital to navigating the current policy landscape and driving the clean energy transition forward.