Opinion | Michigan’s clean energy momentum must continue despite federal changes

In 2009, Michigan was in crisis. We were losing jobs, homes, and hope. But amid the Great Recession, something important happened. Community and state leaders recognized that energy improvements weren’t just a climate strategy, they were an economic one. Energy efficiency and clean energy became tools to help families save money, support skilled trades, and stabilize neighborhoods. 

That mindset helped launch programs like Michigan Saves, the nation’s first nonprofit green bank, which has spent the past 15 years working with contractors, credit unions, and government agencies to make energy efficiency options more accessible and affordable — thanks in part by strong bipartisan support for smart energy investments at the state level.  

We need that same spirit again now. 

The recently enacted federal budget reconciliation law nicknamed the “One Big Beautiful Bill,” presents new challenges and shifts directions for clean energy. The law cuts several federal tax incentives that helped make solar panels, heat pumps, weatherization, and other upgrades more financially feasible for both homeowners and institutions. 

For example, the 30% federal tax credit for residential energy efficiency improvements and solar installations will disappear after Dec. 31, 2025. That includes upgrades like energy audits, furnaces, water heaters, insulation, and windows. Meanwhile, the 30% commercial solar tax credit for schools, municipalities, businesses, and nonprofits is being phased out. New restrictions on foreign-manufactured solar components could further drive up project costs and create undue risk for entities claiming the credit.  

Energy improvements are one of the few ways families can lower monthly bills while also improving their home’s comfort and resilience. They protect against extreme temperatures, make homes healthier, and keep the lights on during outages. For contractors, these projects sustain local, good-paying jobs. For small businesses and public institutions, they reduce operating costs that can be redirected to more pressing needs. 

While the federal policy changes may slow the pace of investments, there is still time to act — and opportunities to seize — if we move quickly. 

Residential and commercial property owners who move forward now can take advantage of these savings before they’re gone. Residential customers will need to complete their solar or energy efficiency projects by the end of 2025, and commercial property owners need to begin construction of such projects this year to qualify for the full incentives under current rules. Technologies like ground-source heat pumps and energy storage used on commercial properties have longer eligibility timelines, with credits available into the early 2030s, although new import limits will apply to some equipment beginning in 2026. 

Organizations like Michigan Saves are working to help homeowners, businesses, nonprofits, and municipalities finance these projects before the window closes. While the tax landscape is changing, the need for reliable, affordable energy solutions is not. 

This moment calls for urgency, not retreat. It’s a time for contractors, solar developers, and local leaders to work together, share accurate information, and help communities act quickly to make wise investments. It’s also a time for state and local policymakers to keep investing in complementary programs that bridge the affordability gap that remains. 

The clean energy future we’ve been building in Michigan didn’t happen because conditions were perfect. It happened because people came together — contractors, community lenders, local governments, and determined homeowners — to make things better. 

We’ve done it before. And we can do it again. 

Yes, the rules have changed. But the mission to reduce costs, protect communities, and build a cleaner, more resilient Michigan remains the same.