Unpacking the "Big Beautiful Bill" and California’s Counter-Punch!

The Big Beautiful Bill and the Future of Green Energy in California

It's always interesting to see how big-picture politics can directly impact our work here at Maktinta. Lately, we've been getting a lot of questions about the clash between federal policies under a potential Trump administration and California's own ambitious green agenda. We've been looking closely at this, and we wanted to share our perspective on what it means for our business and for the future of renewable energy in our state.

The conversation often boils down to two opposing forces: one that champions fossil fuels and one that is doubling down on an all-electric future. The friction between these two approaches is creating a unique environment for the renewable sector, and we've found that it's not all negative news.

The Federal Headwinds

On one hand, a new federal administration under Donald Trump could bring some challenges. We've seen an agenda that prioritizes fossil fuels and has expressed an intent to roll back tax credits and incentives for clean energy.

Policies like the "One Big Beautiful Bill Act" are designed to speed up the phase-out of these credits, which can make it harder for businesses and homeowners to finance new solar projects. This can create uncertainty in the market and potentially slow down the adoption of solar PV and solar thermal systems.

California's “Counter-Punch”

This is where the story gets more interesting. While federal policy might be pulling in one direction, California's state policies are pushing hard in the other. This "pissing contest," between the federal administration and the State of California, has a surprising benefit for us.

The more federal policy leans into fossil fuels, the more California seems to double down on its own climate goals.

Governor Newsom's administration continues to aggressively pursue electrification and defend the state's strict environmental regulations.

This means that, regardless of what happens in Washington, California is dedicated to moving away from fossil fuels, which spells higher energy costs and creates a huge driver for our business.

How This Affects Our Three Business "Legs"

This political dance plays out directly in our three main business areas, and the results are overwhelmingly positive for our customers and for us.

1. Solar Thermal for Domestic Hot Water

Upcoming California regulations are banning new natural gas water heaters in apartment buildings as early as 2030 and will eventually require older ones to be replaced with zero-emission alternatives.

This creates a massive new market that the boiler companies and their contractor base are not yet equipped to address. As apartment owners look to replace old gas heaters with electric models or heat pumps, which are three to four times more expensive to install than standard natural gas boilers, and two times more expensive to maintain and operate (see our blog post covering this topic), apartment building operators will need solutions to offset the higher energy costs.

Our solar thermal systems are the perfect complement, using the sun to pre-heat water and drastically reduce the electricity needed, making the transition to all-electric both green and cost-effective.

2. Solar Pools

It's a similar story for pool heating. Natural gas pool heaters are also being phased out in new pools, and any pool operator who would like to extend the life of their existing gas boilers will have to install a solar pool system that covers a minimum of 65% of the pool's heat needs.

While some might consider a heat pump as an alternative, the heat pump industry is not ready for commercial pool heating. Existing systems are generally too small to provide the heat commercial pools require. The amount of space, electrical infrastructure, and maintenance needed to deploy and keep these heat pump arrays heating a commercial pool will cost three to four times the cost of installing a gas boiler or twice the cost of a solar system. Add to that California's regulations that restrict the use of electric resistance heaters for water and space heating applications (Title 20 Appliance Efficiency Regulations), which makes solar pool heating a very attractive, often the preferred, option.

Our solar pool heating systems don't have these limitations and provide a simple, efficient, and compliant way to heat a pool without relying on costly electric appliances.

3. Solar PV

The broader move towards electrification in California—from water heaters to pools to furnaces—means a huge increase in electricity demand for both homes and businesses.

With the utilities' limited ability to meet the state's growing electrical demand, we anticipate a rising need for self-reliance on micro-grid systems or, at the very minimum, solar PV with a backup battery. Naturally, this is great news for our solar PV business. With higher electricity consumption comes higher utility bills.

This makes installing a solar PV system to generate your own power not just an environmental choice but an essential financial one. The state's commitment to decarbonization creates a strong, long-term incentive for solar that goes beyond federal tax credits.

Our View: A Resilient Future

In the end, while federal policy might introduce some uncertainty, the State of California's robust commitment to an all-electric future is a much stronger force for us Californians.

The political conflict ultimately reinforces California's regulators' pushback on the federal government, creating a growing market for our solar solutions. With 20 years in the renewable and energy efficiency business, we're well-prepared for the shift and are excited to help our customers transition to a cleaner, more affordable, and sustainable future, one project at a time.