Solar Developer Announces Layoffs Amid Accelerated ITC Phaseout

New Leaf Energy Cuts Jobs as Industry Braces for Broader Fallout

The solar industry is beginning to feel the real impact of recent federal policy shifts—and for some companies, the effects are already landing on employees.

New Leaf Energy, a renewable energy development firm formed from a unit of the former Borrego Solar, has announced that it has laid off 41 employees—nearly 20% of its workforce—as a direct result of changes to the federal Investment Tax Credit (ITC) for solar and wind energy projects.

What Changed with the Federal Solar Tax Credit?

Under previous legislation, the 30% federal ITC was available for qualifying solar and wind projects that began construction before 2032. But in a major policy reversal tied to a recent Congressional budget deal, those deadlines have been drastically moved forward:

• Projects must now begin construction by July 4, 2026

• And be placed in service by Dec. 31, 2028 (or by 2027 for some project types)

These tighter deadlines are sparking uncertainty across the renewable energy development sector—especially among utility-scale and community solar developers.

Layoffs Begin in a Shifting Industry Landscape

New Leaf Energy’s layoffs are among the first formal job cuts attributed directly to the ITC changes, but they are unlikely to be the last. According to industry insiders, residential and commercial solar companies across the U.S. are now bracing for similar reductions in hiring, project slowdowns, and possible downsizing.

Pine Gate Renewables, another prominent developer of utility-scale solar and battery storage projects, is rumored to have laid off 15% of its workforce—roughly 50 employees—though the company has declined to confirm these reports publicly.

Some companies appear to be shedding staff quietly, avoiding formal announcements in an attempt to protect internal morale or public perception.

New Leaf Energy Responds to Market Headwinds

Despite the job cuts, New Leaf Energy says it remains financially strong. In a LinkedIn statement, the company emphasized that it is well-capitalized, with a diverse and active pipeline of solar, wind, and battery storage projects across the U.S.

However, the company acknowledged that the sudden shift in tax policy has narrowed the development landscape.

“Reducing the size of the company is intended to provide stability and free cash while we adapt to a changed market,” the statement said. “The pathway to developing clean energy projects has narrowed—but it has not vanished.”

Founded in 2021, New Leaf’s focus includes community and utility-scale solar, energy storage, wind generation, and EV charging infrastructure. Its largest current development is the 100 MW Honey Ridge Solar facility in Jefferson County, New York, expected to begin operations in March 2029.

What This Means for the Solar Industry

These early layoffs could signal a larger wave of employment shifts as companies recalibrate around reduced timelines and tightened tax benefits. For the solar industry to thrive under the new rules, developers will need to streamline operations, secure funding faster, and accelerate project delivery timelines.

The solar transition isn’t over—but the road just got steeper.

Trump Ends Federal Solar Tax Credit Early: What It Means for Homeowners and what to do now

Image courtesy of Opening Bell Daily

In a move that surprised much of the renewable energy industry, President Trump recently signed the “Big Beautiful Bill,” a sweeping legislative package that, among other things, accelerates the end of the federal solar tax credit.

This 30% tax incentive, long considered one of the most powerful tools in making rooftop solar affordable for homeowners, will now expire on December 31, 2025—nearly a decade earlier than originally planned.

If you’ve been thinking about solar but waiting for the “right time,” that moment just became right now.

What Is the Federal Solar Tax Credit—and Why Does It Matter?

The Federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of the total cost of a solar energy system from their federal taxes. It’s been a game-changer, shaving thousands off solar installations and making clean energy accessible for the average household.

Right now, a typical 11-kilowatt solar array costs around $28,160 before incentives, according to EnergySage. With the 30% tax credit applied, that price drops to roughly $20,000. But after 2025, with the credit gone? You’ll be paying full price—no exceptions.

That’s not just a budget issue—it could put solar out of reach for tens of thousands of American homeowners.

Electricity Demand Is Surging—Just as Solar Support Fades

If the policy shift wasn’t enough, there’s another looming issue: electricity demand is about to explode.

Thanks to the rapid growth of AI data centers and digital infrastructure, experts are forecasting a 130% increase in electricity consumption by 2030. Without sufficient rooftop solar adoption to help relieve grid pressure, utilities will need to build out costly infrastructure—and guess who funds that?

You, the ratepayer. Expect higher utility bills and more volatility as utilities scramble to meet growing demand—without the solar adoption that could’ve helped offset it.

Already Have Solar Panels? Here’s What It Means for You

If you already have solar installed and have claimed the tax credit, you’re in a great position. Your system is grandfathered into the current policy, and you’ll continue to enjoy the savings, performance, and peace of mind your setup offers.

Even better? As energy prices rise, your investment becomes more valuable—delivering a faster return than you may have originally planned.

Those who secured solar installations over the past few years, especially when equipment prices and interest rates were lower, will likely emerge as the real winners of this policy shift.

If You’re Considering Solar:

Start your solar journey now.

With a looming deadline, installation timelines will stretch. It typically takes 2–4 months from quote to installation, and experts expect a late-2025 installation rush that could lead to delays, higher prices, and missed opportunities.

Waiting until the last minute could mean missing out altogether.

If You Already Have Solar:

Think about battery storage.

Adding energy storage (ESS) while state and local incentives are still active is a smart way to make your system even more resilient. With grid instability on the rise, backup power is becoming essential, not optional.

If Solar Isn’t Feasible for You:

Focus on efficiency.

Solar isn’t the only way to reduce your energy costs. Upgrading insulation, investing in smart thermostats, and swapping in efficient appliances can make a big impact—with a smaller upfront investment.

The Bottom Line: Solar Is Still a Smart Move—But Timing Is Critical

This new policy reality changes the landscape. The financial case for solar remains strong—but only if you act before the credit disappears.

Whether you're looking to reduce your utility bills, gain energy independence, or increase your home’s value, waiting is no longer an option. The sooner you move, the better your chances of securing meaningful savings and a reliable energy future.