This might be related to the technical correction to wording of 48E on
percentages of domestic content??
* Correction to Domestic Content Percentages Under 48E: The domestic
content applicable percentage under 48E for qualified facilities and energy
storage technology would be revised to match current 45Y as follows:
* 40% (or 20% for offshore wind) if construction begins before June 16,
2025;
* 45% (or 27.5% for offshore wind) if construction begins after June 16,
2025, and before Jan. 1, 2026;
* 50% (or 35% for offshore wind) if construction begins during 2026; and
* 55% if construction begins after Dec. 31, 2026.
This content percentage wont matter to residential system owners - 25D still
goes away at EOY, no domestic content requirements...
Only folks leasing systems can get the credit, THEN domestic content matters.
PV Magazine has good summary article.
https://pv-magazine-usa.com/2025/07/10/what-the-budget-bill-means-for-energy-storage-tax-credit-eligibility/
Wannabe residential battery owners will likely feel the most immediate impact
of the OBBB.
Updates to the 25D residential solar tax credit, which covers solar panels,
solar water heaters and related property like home battery storage systems,
have significantly shortened the timeline for homeowners to access the credit.
Now, home batteries will only qualify for the 30% tax credit if they're
purchased and installed by the end of the year before the credit phases out
entirely.
There is a bright spot: residential systems leased from third parties will
remain eligible for tax credits beyond 2025, as they rely on 48E instead of 25D.
Michael Mahon (he/him)
Solar Academy Manager | SMA America
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From: RE-wrenches <[email protected]> On Behalf Of
scot.arey--- via RE-wrenches
Sent: Thursday, July 17, 2025 8:11 AM
To: RE-wrenches <[email protected]>
Cc: [email protected]
Subject: [RE-wrenches] Is there a domestic content reqt for batteries effective
now? For Residential?
I consider myself mostly pretty aware of policy issues that effect business but
this paragraph in a Seeking Alpha investment article caught my eye. Is there a
new domestic content reqt for batteries in residential installations?
"The higher domestic content batteries comply with the new requirement in the
U.S. federal budget law, which retroactively enforces a 45% U.S.-sourced
materials threshold for solar and battery products starting June 16, 2025."
https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1
[https://static.seekingalpha.com/assets/og_image_1200-29b2bfe1a595477db6826bd2126c63ac2091efb7ec76347a8e7f81ba17e3de6c.png]<https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
Enphase Energy begins shipments of IQ Battery 5P with higher domestic content -
Seeking
Alpha<https://seekingalpha.com/news/4468352-enphase-energy-begins-shipments-of-iq-battery-5p-with-higher-domestic-content#source=first_level_url%3Aportfolio%7Ccontent_type%3Aall%7Csection%3Aportfolio_content_unit%7Csection_asset%3Alatest%7Cline%3A1>
Discover Enphase Energy's new IQ Battery 5P with increased U.S.-sourced
materials, complying with updated federal standards.
seekingalpha.com
Wanting to make sure I'm not setting up this years customers for issues getting
the 30% Federal tax credit/
Howard "Scot" Arey
Owner, Solar CenTex
NABCEP PV Installation Professional
TECL 29755
254-300-1228
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