The One Big Beautiful Bill Act (OBBBA) introduces major changes to clean energy tax incentives originally established by the Inflation Reduction Act. The Stone House Group has analyzed the implications of these shifts and what they could mean for future projects in solar, wind, EVs, and more.
Meeting that demand requires a clear understanding of the technologies reshaping the industry and how to apply them in the real world. We’ve identified several emerging technologies that should be on every Facility Manager’s radar. We’ve categorized them by their primary impact: Energy and Operations.
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A new form of solar panels is officially entering the US market, offering a more aesthetically pleasing alternative to traditional rooftop solar. The European company Roofit.Solar focuses on a technology called building-integrated photovoltaics (BIPV), where the roofing material itself is the solar panel. These integrated systems minimize visual impact, which is often a consideration for historic buildings or aesthetically sensitive campuses.
Heat pump technology has undergone a significant transformation, overcoming past performance limitations, especially in colder climates. Recent studies, such as those conducted by organizations like the National Renewable Energy Laboratory (NREL), confirm their viability and efficacy even in regions with harsh winters, making them a crucial technology for decarbonization efforts nationwide.
Geo-exchange (or ground source heat pump) systems remain one of the most effective ways to heat and cool facilities using the stable temperature of the earth, providing high-efficiency heating/cooling regardless of external weather conditions. The financial viability of these systems has been significantly boosted by the continued availability of federal and state tax credits, which can substantially lower the first-cost hurdle, making the long-term ROI even more attractive. Innovation in this area focuses on optimizing the drilling process and improving heat transfer efficiency to reduce installation costs and land usage. For instance, Minnesota-based Darcy Solutions has pioneered "turbo-charging" mechanisms that utilize the high thermal conductivity of moving groundwater. By drawing heat from an aquifer rather than static soil, these systems allow for significantly fewer wells to achieve the same energy output, maximizing efficiency while minimizing site disruption.
The next generation of Building Automation Systems (BAS) is moving toward smarter, more flexible control architectures. New, non-proprietary controllers, such as those utilizing the EnOcean standard, are entering the market, offering a cheaper and more adaptable alternative to complex, expensive proprietary BAS. While the EnOcean standard itself does not incorporate artificial intelligence (AI), this shift gives facility managers more freedom in system configuration, allowing them to leverage AI and machine learning capabilities to control systems through a smart server. This setup allows for the autonomous reconfiguration of system points and optimization of performance, constantly fine-tuning a building's operation for peak efficiency and minimal energy waste.
The next step beyond intelligent controls is using data analysis to constantly monitor and diagnose the operational health of your building portfolio. These platforms connect directly to your existing Building Automation System (BAS) to continuously ingest real-time operational data (e.g., temperatures, setpoints, valve positions, equipment runtimes, etc.). For example, a platform like ClockWorks utilizes proprietary FDD algorithms to automatically detect and diagnose operational faults and inefficiencies, turning raw data into opportunities for low-cost or no-cost corrections.
These modern systems replace traditional keyways with battery-powered mechanisms, providing detailed audit trails and simplifying access control for staff and visitors. Cutting-edge systems now explore "direct line of sight" non-connected power charging, eliminating the need for complex hardwiring at every door.
Capturing accurate "as-built" conditions for existing facilities has traditionally been a time-consuming and expensive process, often involving professional surveying or manual measurements. Tools like Polycam (a mobile and desktop application) are democratizing this process by leveraging LiDAR and photogrammetry capabilities found in modern smartphones and tablets. The SHG team can partner with your facilities staff to rapidly scan rooms, entire floors, or building exteriors to generate accurate, georeferenced 3D models and 2D floor plans. This allows for near-instantaneous documentation of spaces for renovation planning, capital project management, and simply maintaining a digital twin of the campus.
The Federal Government enacted significant modifications to clean-energy credits, previously established by the Inflation Reduction Act of 2022 (IRA), when he signed H.R. 1, also known as the One Big Beautiful Bill Act (OBBBA), on July 4, 2025.
The OBBBA introduces changes to clean-energy tax incentives that include accelerated phase-outs for certain energy credits, stricter domestic content requirements, and new restrictions on foreign entities. Additionally, some projects must now meet earlier deadlines to qualify for incentives. We've summarized these changes below.
This provision was introduced in the IRA and allows not-for-profit entities to receive tax credits for energy investments. The Elective Pay provision remains unchanged.
The bill maintains full ITC eligibility for qualifying geothermal heat pump (aka, geo-exchange or ground source heat pump) technologies.
OBBBA terminates the eligibility of wind and solar projects for Investment Tax Credits if the projects do not meet specified deadlines.
• Projects must begin construction within twelve months of enactment of the legislation, before July 4, 2026, or
• Projects must be placed in service before December 31, 2027.
Solar and wind projects must also comply with Foreign Entity of Concern (FEOC) rules, described below.
The bill maintains full ITC eligibility for battery, fuel cell, and CHP technologies that comply with FEOC rules.
The Foreign Entity of Concern rules operates under three categories, barring tax credit eligibility:
(i) where the project is owned by an foreign entity,
(ii) where a foreign entity exercises “effective control” over the project, or
(iii) where the project has a material reliance on products/materials sourced by an foreign entity.
To determine FEOC eligibility, the initial step involves assessing whether the project received "material assistance" during its construction from a "prohibited foreign entity." The IRS will issue a formula in the future to determine if a power or storage project benefited from such assistance.
Tax credits for electric vehicles, charging stations, and residential clean energy systems were repealed, with the repeals effective at different times over the next year.
On July 7th, the President issued an Executive Order, “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources”.
The EO directs, within 45 days of enactment of H.R. 1 (i.e., by August 18, 2025), the Treasury Department to take “necessary and appropriate [action] to strictly enforce the termination of the clean electricity production and investment tax credits … for wind and solar facilities. This includes issuing new and revised guidance as the Secretary of the Treasury deems appropriate and consistent with applicable law to ensure that policies concerning the ‘beginning of construction’ are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.”
It further directs “prompt action as the Secretary of the Treasury deems appropriate and consistent with applicable law to implement the enhanced Foreign Entity of Concern restrictions in the One Big Beautiful Bill Act.”
We understand that these policy changes raise more questions than they answer, especially for organizations actively planning or considering clean energy projects. While this summary outlines the key updates under the One Big Beautiful Bill Act, the full impact will depend on your specific project type, timeline, and compliance requirements. If you’re navigating next steps or evaluating your eligibility for clean energy incentives, The Stone House Group is here to help. Connect with our team to explore your options and ensure your project stays aligned with the latest federal requirements.
Downloadable copy available here.
Source:
Wilson, E. J. H., Munankarmi, P., Less, B. D., Reyna, J. L., & Rothgeb, S. (2024). Heat pumps for all? Distributions of the costs and benefits of residential air-source heat pumps in the United States. Joule, 8(4), 1000–1035. Link: https://docs.nlr.gov/docs/fy24osti/84775.pdf
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