Solar industry warns HR1, tariffs and permitting delays will slow rooftop and small commercial projects; safe‑harbor and state policy can sustain near‑term work
October 31, 2025 | Environment & Energy, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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Developers and installers told the House Committee on Energy and Digital Infrastructure that a recent federal law (HR1), higher tariffs on construction materials and long permitting timelines are reducing the economics of residential solar and pressuring installers — though industry speakers said there is still a multi‑year window for larger projects under Investment Tax Credit (ITC) safe‑harbor rules.
Thomas Hand, principal of MHG Solar, said his firm has developed about 60 megawatts of photovoltaic projects in Vermont and has roughly 50 megawatts in active development. “MHG has developed, approximately 60 megawatts worth of PV projects in Vermont, ground mounted projects, ranging from 500 k w net metered systems up to 5 megawatt AC, projects that sell directly to, Vermont utilities,” Hand testified. He said rising costs for transformers, poles and other materials — many now affected by tariffs — increase project budgets and timeframes.
Mike McCarthy, president of SunCommon, told the committee HR1’s removal of a 30% residential tax credit for systems that come online after Dec. 31 significantly worsens owner economics. “HR1, the biggest impact it has on us is that it eliminates that federal support for homeowners, whose projects go online after December 31,” McCarthy said, describing a longer payback period for typical residential systems and fewer installs and hiring plans as a result.
Commercial and community solar developers said that while residential incentives are under pressure, the Investment Tax Credit for larger projects and IRS safe‑harbor rules give developers time. “We work in the ground‑mounted commercial nonresidential solar sector…we've got a good solid 4 to 5 years ahead of us to be able to take advantage of the investment tax credit,” said Jim Merriam, CEO of Norwich Technologies. He urged policymakers to preserve the Renewable Energy Standard (RES) certainty and to pursue permitting reform — including clearer timelines for Certificates of Public Good (CPG) — to avoid costly delays.
Industry speakers also supported targeted state policy responses to preserve deployment and lower customer costs: reforms to the PSB/CPG timelines, adjustments to valuation and net‑metering rules, and targeted incentives for income‑qualified homeowners to offset upfront costs.
This article synthesizes testimony from multiple solar industry witnesses at the committee hearing and does not assert facts beyond the witnesses’ statements.
Thomas Hand, principal of MHG Solar, said his firm has developed about 60 megawatts of photovoltaic projects in Vermont and has roughly 50 megawatts in active development. “MHG has developed, approximately 60 megawatts worth of PV projects in Vermont, ground mounted projects, ranging from 500 k w net metered systems up to 5 megawatt AC, projects that sell directly to, Vermont utilities,” Hand testified. He said rising costs for transformers, poles and other materials — many now affected by tariffs — increase project budgets and timeframes.
Mike McCarthy, president of SunCommon, told the committee HR1’s removal of a 30% residential tax credit for systems that come online after Dec. 31 significantly worsens owner economics. “HR1, the biggest impact it has on us is that it eliminates that federal support for homeowners, whose projects go online after December 31,” McCarthy said, describing a longer payback period for typical residential systems and fewer installs and hiring plans as a result.
Commercial and community solar developers said that while residential incentives are under pressure, the Investment Tax Credit for larger projects and IRS safe‑harbor rules give developers time. “We work in the ground‑mounted commercial nonresidential solar sector…we've got a good solid 4 to 5 years ahead of us to be able to take advantage of the investment tax credit,” said Jim Merriam, CEO of Norwich Technologies. He urged policymakers to preserve the Renewable Energy Standard (RES) certainty and to pursue permitting reform — including clearer timelines for Certificates of Public Good (CPG) — to avoid costly delays.
Industry speakers also supported targeted state policy responses to preserve deployment and lower customer costs: reforms to the PSB/CPG timelines, adjustments to valuation and net‑metering rules, and targeted incentives for income‑qualified homeowners to offset upfront costs.
This article synthesizes testimony from multiple solar industry witnesses at the committee hearing and does not assert facts beyond the witnesses’ statements.
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