Summary
- Utility bills are rising across the U.S., creating new opportunities for solar installers even as incentives shift.
- Federal changes as a part of the One Big Beautiful Act (OBBBA) change how developers and EPCs time solar projects, especially for construction start and in-service deadlines.
- Solar remains the fastest-growing source of new energy capacity in the U.S., and Mission Solar continues to support commercial, industrial, and residential partners across the country.
With 2025 coming to a close and 2026 fast approaching, Mission Solar is here for the EPC and installer teams across the country preparing to start a new year of projects. While there are important changes to federal regulations in the renewables sector, looking to the new year, the outlook on commercial and residential solar remains strong. Mission Solar has six major updates on the state of the energy industry in the US to help frame your work for next year.
4 Major Changes to Solar and the Energy Industry in 2026
- Federal Credits and Incentives are Ending – Commercial and utility solar projects are facing a new landscape in 2026. Under the One Big Beautiful Bill Act, at the time of writing, projects qualify for updated incentives if they’re placed in service by the end of 2027, or if construction begins before July 4, 2026. Historically, projects that began construction could rely on a multi-year runway to come online and still claim tax credits. Under OBBBA, most solar and wind credits now have a hard cutoff after December 31, 2027, with limited relief for projects that begin construction within 12 months of the bill’s enactment.
This changes how EPCs think about procurement and staging. Developers who want to protect credit eligibility will need tighter timelines, clearer procurement paths, and a stable module supply moving into next year. Mission Solar’s U.S. operations are online to support these goals with ready domestic availability.
For residential projects, incentives will follow a separate schedule from commercial and utility-scale projects. The Residential Clean Energy Credit for rooftop solar and batteries is repealed for systems placed in service after December 31, 2025, meaning that residential systems must be installed and operational by December 31, 2025 in order to qualify for credits. - Rising Utility Bills are Reshaping the Value of Residential Solar – Home energy rates are climbing nationwide. Homeowners are now under pressure, with most markets seeing a shift in solar incentives across the US. For residential installers, this is an opportunity to reaffirm the value of home solar. Residential buyers are looking for ways to stabilize long-term energy costs, and good solar continues to deliver predictable production year after year. Even with the removal of the Investment Tax Credit (ITC), installers can now lean further into the solar value proposition: the less a home depends on the grid, the fewer surprises show up on the utility bill. High-efficiency Mission Solar residential panels strengthen this pitch, delivering strong production in compact layouts, helping homeowners maximize output even on challenging roofs, all backed by a 25 year warranty.
- U.S. Power Demand is Expected to Rise – In 2026, U.S. power demand is expected to reach record highs, driven by data centers, commercial growth and electrification. More load means more opportunity for solar installers on rooftops, ground mounts, and industrial sites looking for reliable, long-term power solutions.
- 32 GW of New Solar Capacity Coming by 2026 – EIA data show developers planning roughly 32 gigawatts of new solar capacity over the next year, spanning late 2025 and into 2026, driven by many of the same forces lifting overall US energy demand. Teams working on large-scale deployments may face longer queues, tighter labor windows, and higher competition for materials. Installers who plan early, and source domestically, will be positioned to meet these schedules without risking delivery gaps.
What’s Staying the Same in Solar for 2026
- Solar Remains the Fastest-Growing New Energy Source in the US – Even with policy shifts, solar is still the country’s leading source of new generating capacity according to the EIA. Demand continues to climb, and solar leads the charge— for installers planning multi-year investments in labor, equipment, and service teams, this stability is crucial.
- Mission Solar’s Commitment to You – Policy changes come and go and utility rates continue to climb, but Mission Solar’s foundation stays the same:
- Headquarters still proudly based in Texas
- High-efficiency, high-durability products for residential, commercial, and industrial projects
- Supply chain stability backed by our nationwide, American distribution network
- Long-horizon warranties installers can count on
Installers need partners who stay steady when the market moves. Mission Solar remains focused on giving U.S. builders dependable modules, clear documentation, and support from teams who understand real-world energy needs.
FAQs
Q: How do rising utility bills impact residential solar in 2026?
A: Higher utility rates make solar more appealing for homeowners, even with incentive changes. Installers can rely on strong production and long-term savings as key talking points.
Q: What federal changes should developers and EPCs know about in Solar for 2026?
A: Under the OBBBA, C&I projects qualify for incentives if they’re placed in service by the end of 2027 or start construction before July 4, 2026. Once construction begins, projects have four years to come online and still earn credits. For residential projects, the Residential Clean Energy Credit for rooftop solar and batteries is repealed for systems placed in service after December 31, 2025. Systems must be installed and operational by December 31, 2025 in order to qualify for credits. For more information about credit availability, always check with local legislation.
Q: How much new solar capacity is expected in 2026?
A: More than 32 GW of new solar is forecasted to enter service through October 2026. Installers should expect increased demand for C&I modules. For information about large-scale procurement or deployments, please contact our sales team.
Legal Disclaimer:
This material is provided for general informational purposes only and does not constitute tax, legal, accounting, or other professional advice. It may not reflect individual circumstances, jurisdictional requirements, or project-specific considerations. Before taking any action based on this information, consult a qualified professional.