GNRC · 10-Q · 2026Q2 · Full report

Solar Subsidy Phase-Out

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 47 · Surprise 60

The United States enacted the One Big Beautiful Bill Act on July 4, 2025, accelerating the phase-out of tax incentives for solar and storage products and adding domestic supply-chain requirements for certain incentives. Generac expects the phase-out to negatively affect the U.S. solar and storage markets in the near term. The company nevertheless expects grid instability, rising power prices, environmental concerns, permitting challenges, and improving renewable and storage economics to support longer-term investment in solar, storage, and energy-management solutions. The legislation also accelerated the phase-out of certain investment tax credits for the residential solar and storage market thereafter.