March 24, 2026
By Martin Pochtaruk, CEO of Héliene | There are many reasons to be optimistic about the solar market and the future of domestic clean energy production in the United States right now. Solar continues to enjoy broad public and bipartisan support. More importantly, energy remains the cheapest form of energy, making it an economic choice even under rhetorical headwinds. And solar energy’s potential to meet rising energy demands and surpass older generation sources has been demonstrated time and time again, it’s a fact.
Of course, there are still some sources of uncertainty and volatility that are driving developers to adjust their short- and long-term strategies. Chief among these are the increased restrictions on foreign health care entities (FEOC) introduced by the One Big Beautiful Bill Act (OBBBA). Of provisional guidance Recently released, developers are beginning to get a clearer picture of how and to what extent integrating solar panels and components made by prohibited foreign entities (PFE) would impact their project’s eligibility for tax credits.
Wise developers will take advantage of market shifts to maintain momentum for their solar projects this decade. As the U.S. solar supply chain becomes increasingly important completely onshoreit is possible to qualify for federal incentives through domestic content compliance. Safe Harboring, as used in the past, remains a good strategy for protecting project models and financial plans in a changing policy environment.
We consider all options for incentives and bonuses
The importance of reshoring and onshoring solar supply chains cannot be understated. When most or all of the components needed to manufacture a solar panel can be made domestically, the American product competes with global sources while reducing dependence on foreign components and product imports. This is essential for securing affordable, reliable and safe energy for decades to come.
With critical solar panel components such as polymers, cells, frames and more available through fully domestic suppliers, developers have a clearer path to reaching the threshold needed to qualify for the 30% investment tax credit (ITC) and 10% domestic content bonus ITC.
Developers prioritizing domestic content should seek to work with manufacturers that provide transparency about the source and cost of individual module components. Not only does this ensure modules are eligible for domestic content adders, it also gives developers peace of mind knowing they are compliant with FEOC restrictions. Some manufacturers may even offer the ability to customize a module’s BOM, making it possible for developers to balance budget and domestic content needs. The ability to access complete, detailed cost and purchasing information for all aspects required for solar panel production will become even more important for developers as the FEOC guidance is finalized in the coming months.
In addition to the incentives available for the content of the modules themselves, developers should also inform themselves about project-based incentives that reward solar projects planned for low-income communities or those where old energy generation assets, such as coal, were previously located.
Staying ahead with safe harbor options
During 2025, it was possible for developers to obtain tax credits for the 2025 tax year for a project in two ways: by physically working on the project or by paying at least 5% of the total project cost. Many chose to go the latter route, purchasing pre-qualified solar panels (or other equipment) for later deployment.
This year, there are still opportunities for developers working with domestic manufacturers to obtain incentives through the physical work route. Projects must prove significant work is being carried out on or off site before a new deadline of July 4, 2026.
The on-site work is simpler and includes the initial construction work and installation at the project site. Physical on-site work may include the production of project components such as racks, rails and inverters. When this work is performed by a third-party manufacturer, the developer must prove that the components are purchased and manufactured under a binding contract. This is another area where manufacturers providing detailed, transparent component cost information can provide developers with an advantage.
Even during a tumultuous time for global markets, solar energy remains on top. It is already the cheapest form of energy and its competitiveness will continue to improve as more domestic production comes on stream, while FEOC conditions become stricter year after year. As policies, incentives, and deadlines change, developers can still take advantage of the opportunities available. By taking action now to monitor market shifts and partnering with solar manufacturers who prioritize domestic content and cost transparency, developers can secure value for their projects and communities for years to come.
Martin Pochtaruk is founder and CEO of Héliene. He has 35 years of experience in managing manufacturing and innovation companies in Europe and North and South America.
Tags: domestic content, Heliene, investment tax credit, ITC, manufacturing, OBBBA, tax credit
