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.