It is no secret that the incoming president is openly hostile to both climate action as well as the government agencies leading the charge. With Trump loyalists in Congress and the Supreme Court, the question naturally arises for commercial and industrial (C&I) building owners: Will solar still be a smart investment? While the full impact of the incoming anti-clean energy administration will only become clear with time, understanding its potential impacts can help you navigate this shifting landscape.

The IRA and Its Significance for C&I Solar Projects

The Biden Administration’s IRA was a game-changer for C&I building owners, fundamentally shifting the clean energy financing landscape through numerous regulations and incentives, including:

• A 30% Investment Tax Credit (ITC) for solar installations, extended through 2032;

• Additional bonuses of up to 40% for projects in low-income, disadvantaged, or priority energy communities, and for projects meeting labor and domestic content standards;

• ITC eligibility for battery storage, critical for unlocking the full value of renewables and strengthening energy resilience.

Over the past four years, these incentives have made solar a highly attractive option for C&I operations looking to reduce energy costs, improve sustainability, and enhance property value. How much could the next Trump presidency change this?

Potential Challenges Under the New Administration

With Republican control of all branches of the federal government, there will be an unprecedented threat to the U.S. climate policies that have allowed the national solar industry to develop and thrive over the past few decades. While the Trump Administration may not be able to achieve all of its pro-fossil fuel agenda, here are some of the most likely changes to come in the coming years:

1. Repealed or Reduced Incentives
   The incoming administration has signaled strong support for rollbacks of both recent and long-standing clean energy incentives. This could mean reductions in or elimination of the ITC and other popular solar incentives like the Rural Energy for America Program and the Energy Infrastructure Reinvestment Program. For C&I owners, this creates uncertainty around project ROI and payback periods.

2. Impact on Financing
   With these possible policy changes on the horizon, lenders and investors may become more cautious, potentially increasing the cost of capital for solar projects. Building owners relying on third-party financing, such as power purchase agreements (PPAs) or leases, may see revised terms.

Economic Pressures
Solar companies saw stock market declines following the election, reflecting broader concerns about the future of the industry. This volatility may continue, leading to delays or hesitations in project planning for some C&I stakeholders.

Why Solar Still Makes Sense for C&I Owners

Despite these uncertainties, solar remains a strong investment for many C&I property owners:

• Energy Cost Savings: Regardless of policy changes, solar will continue to offer long-term savings on utility bills, especially in regions with high electricity rates or demand charges.

• Increased Property Value: Solar installations can enhance asset value and appeal to tenants and businesses focused on ESG (Environmental, Social, and Governance) goals, especially in states with strong clean energy policies like California.

Resilience: Pairing solar with battery storage builds energy independence, protecting your operations from grid outages or price spikes — both of which are more likely under another Trump Administration due to its chaotic governing style and favoring of slashing funds for key government agencies.

Preparing for Uncertainty: Steps for Building Owners

1. Act Quickly
   If you’re considering solar, start the process now. Projects initiated before potential policy changes may still qualify for existing incentives.

2. Evaluate All Incentives
   Many states and utilities offer their own solar incentives. Even if federal programs change, these local opportunities can help offset costs. Check out this nation-wide incentive program database to get started today!

3. Explore Financing Options
   Partner with experienced solar developers like Mynt Systems to evaluate options such as PPAs or Energy-as-a-Service models, which minimize upfront costs and transfer performance risks.

4. Focus on Resilience
   Investing in energy resilience measures like battery storage, demand response, and microgrids can deliver significant operational and financial benefits, regardless of future policy changes.

A Silver Lining: Bipartisan Solar Support

Even with the uncertainty at the federal level, it’s worth noting that many benefits of the IRA flow to Republican-leaning states and districts where clean energy projects are creating jobs and boosting local economies — as much as $165 billion so far. This bipartisan distribution is already making a full repeal of the IRA politically unlikely, with a group of Republican House Representatives penning a letter to the House Speaker earlier this year urging for the preservation of the IRA’s tax credits and calling a full repeal a “worst-case scenario”. Even close Trump allies have made significant economic gains due to the IRA, such as the billions of federal dollars awarded to Elon Musk’s Tesla in EV incentives. The widespread popularity of the IRA and other clean energy funding sources across the country and in Congress offers some hope for stability in the solar sector.

Conclusion

For C&I building owners, the future of solar investments may seem uncertain under the new administration, but the fundamentals remain strong. Solar still offers significant cost savings, operational resilience, and sustainability benefits. By acting quickly and leveraging the available incentives, you can position your properties for long-term success, even in a shifting regulatory environment.

If you’ve been considering solar, now is the time to act. The sun isn’t going anywhere — make it work for your business before policy changes take the shine off current incentives.