GNRC · 10-Q · 2026Q3 · Full report

Solar Subsidy Phase-Out

GENERAC HOLDINGS INC. · 2026-11-03 · Importance 46 · Surprise 42 · In source text

The United States enacted the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, accelerating the phase-out of solar-market tax incentives and imposing certain domestic supply-chain requirements to qualify for incentives. Generac states that the phase-out will negatively affect solar and storage markets in the near term; it also reports that the law’s accelerated phase-out of certain investment tax credits negatively affected the residential solar and storage market thereafter. Despite this near-term pressure, management expects underlying market trends to support long-term investment and plans to build energy-technology capabilities and strengthen its position in residential solar, storage, and energy management.

Key facts

• The July 4, 2025 OBBBA accelerates the phase-out of solar tax incentives and includes domestic supply-chain requirements for qualifying incentives; Generac expects the phase-out to negatively affect solar and storage markets in the near term. source
• The July 2025 OBBBA accelerated the phase-out of certain investment tax credits, negatively impacting the residential solar and storage market thereafter. source

Impact estimates