New bill mandates urgent action on solar incentives and EV work implementation

During the July 8, 2025 City Council meeting in Cotati, California, discussions centered on recent changes to incentives for renewable energy projects, particularly focusing on electric vehicle (EV) work, battery storage, and solar energy. These changes are crucial for local developers and residents looking to maximize their benefits from federal tax credits.

The council highlighted that EV-related work must be implemented within 12 months of the bill's enactment to qualify for associated incentives. In contrast, battery storage incentives have been extended until the 2030s, providing a more relaxed timeline for stakeholders in that sector.

However, the most pressing issue discussed was related to solar energy projects. To secure a 30% tax credit, developers must enter into a construction contract within the current year and ensure that at least 5% of the materials are procured for the project. This requirement is essential to "grandfather" projects under the current incentive rates. If projects are not grandfathered, they will only qualify for the same 30% incentive if completed by 2026, which poses a significant risk for those planning solar installations.

Additionally, a new clause in the law stipulates that materials used in these projects cannot originate from foreign entities deemed a concern. This requirement complicates supply chains for solar battery storage, potentially impacting project timelines and costs.

The urgency surrounding these changes was emphasized, as stakeholders are encouraged to act quickly to maximize their incentives. The council's recommendations will be further discussed in upcoming meetings, as they navigate the implications of these new regulations for the Cotati community.