US solar industry faces layoffs and restructuring as federal tax credit expires
The end of a federal tax credit has sparked layoffs and bankruptcies in the US solar sector. Installers are now pivoting to leasing models to offset costs.
Insights:
The 30% federal income tax credit (residential rooftop solar) expired at the end of 2025, and the 
US residential solar companies / residential solar industry in the US have responded with layoffs, market exits, bankruptcies, and restructurings. This policy change, which occurred under President donald trump’s tax overhaul, is reducing residential solar installations and lengthening payback periods for homeowners. As of February 5, 2026, the sector is grappling with the loss of a subsidy that drove over a decade of growth in distributed generation.
US residential solar companies / residential solar industry in the US have responded with layoffs, market exits, bankruptcies, and restructurings. This policy change, which occurred under President donald trump’s tax overhaul, is reducing residential solar installations and lengthening payback periods for homeowners. As of February 5, 2026, the sector is grappling with the loss of a subsidy that drove over a decade of growth in distributed generation.
