Despite tax incentive cuts for solar, these companies’ technical expertise, customer relationships, and established roles in the clean energy ecosystem will allow them to easily pivot their business.
Shutterstock
The solar industry has always been a “solar coaster”—a thrilling ride of rapid growth followed by sudden dips. Today, that roller coaster has taken a sharp turn. Recent federal tax credit cuts have left many solar companies scrambling to maintain momentum. For years, these credits acted as the backbone of residential and commercial solar projects, making systems more affordable for consumers and helping businesses expand. Without them, the economics of solar are shifting, and many firms are searching for new ways to stay profitable.
The Impact of Tax Credit Cuts
Tax incentives have long played a decisive role in solar adoption. With the reductions, projects that once closed easily are now stalled or canceled. Contractors face slimmer pipelines, consumers face higher upfront costs, and investors are re-evaluating risk. For many companies, this is a sobering reminder of the dangers of relying too heavily on a single policy driver.
In a recent discussion with Dr. Janel Hills, Cofounder of Monochrome Consulting—an organization offering comprehensive services to help clients navigate their organizational strategies—she said, “Contractors will ‘probably go out of business’ (Walker, 2025) is noted as the sentiments across the industry and ‘up to 75,000 Americans could lose their jobs as a direct result.’ (2025). The ripple effect of the solar coaster will be industry changing and unforgettable as we work to rebuild.”
But all is not lost.
Pivoting to Resilience
Solar companies already have a powerful foundation: technical expertise, customer relationships, and an established role in the clean energy ecosystem. Those strengths can be redirected. According to Dr. Hills, “Solar company leaders must remain mission-driven, innovative and collaborative. I would also say be realistic, but reassuring.”
One path forward is to diversify into adjacent markets like energy efficiency, HVAC upgrades, battery storage, and smart home technologies. Energy efficiency, in particular, offers a natural fit. By tightening building envelopes, upgrading HVAC systems, and improving indoor air quality, companies can deliver immediate savings to customers while maintaining steady revenue streams. Unlike solar, efficiency measures are often supported by local utility programs, rebates, and direct performance incentives—creating a more stable market environment.
Hills adds, “I [recently] conversed with someone who stated, ‘a pivot toward energy efficiency may be necessary.’ If the end result is to save the planet, pairing is definitely necessary.”
Building the Future Workforce
Another area of opportunity lies in workforce training and re-skilling. Many solar installers already possess transferable skills—electrical, mechanical, and project management—that are in high demand across the energy efficiency and electrification space. By investing in training, companies can redeploy staff into these growing fields, reducing layoffs and maintaining organizational strength.
Looking Ahead
The solar coaster isn’t ending—it’s just changing tracks. Policy shifts are inevitable in any emerging industry. What matters most is adaptability. Companies that embrace diversification, focus on long-term customer value, and explore broader roles in the energy transition will not just survive, but thrive.