By David M. Newman, P.E., C.E.M., Vice President of Engineering, Energia

The energy savings landscape for municipalities has fundamentally shifted. For years, federal tax credits from the Inflation Reduction Act (IRA) served as a powerful engine, spurring a wave of ambitious clean energy and efficiency projects across the country. But with the passage of the new “One Big Beautiful Bill Act” (OBBBA), that engine has been fundamentally shut down and re-engineered.

Many of the well-known federal tax incentives that drove municipal planning have been terminated for new projects or are set to expire soon. The OBBBA has accelerated phase-out deadlines, making past assumptions about project financing no longer viable for future planning. Additionally, new Foreign Entity of Concern (FEOC) requirements and supply chain restrictions are creating significant risks for both new and existing projects.

So, where do municipalities and towns go from here?

The path forward is not about abandoning your energy goals, but about adopting a new, resilient strategy. It’s a two-part process: first, you must protect your current investments, and second, you must strategically chart a course for the future.

Beyond the financial and logistical impacts of OBBBA, this is a moment to assess the underlying vulnerabilities

Part 1: What to Do Now: The Post-OBBBA Project Audit

Your first and most critical step is to conduct a Post-OBBBA Project Audit. It’s time to take a forensic look at your entire energy portfolio. This audit represents a comprehensive risk assessment of your energy projects.

  • Financial Audit: Review all pro-formas for projects that relied on now-defunct federal incentives. You need to understand how the loss of these incentives impacts your project’s financial viability and explore alternative funding solutions, such as state-level programs.
  • Supply Chain Audit: While the final rules on FEOC requirements are still being defined, you can’t afford to wait. You must engage with your vendors now to ensure compliance and identify any potential complications that could derail existing projects.
  • Risk & Resiliency Audit: Beyond the financial and logistical impacts of OBBBA, this is a moment to assess the underlying vulnerabilities in your current infrastructure. Does your energy system rely on a single, fragile point of failure? Are you prepared for grid outages?

Part 2: What to Consider Next: A Resilient Path Forward

With your current projects secured, you can shift your focus to a resilient, forward-thinking strategy that is independent of shifting federal policies. This solution relies on a three-pronged approach:

  • Pivot to State-Level Programs
    While the federal landscape has changed, many states have a robust ecosystem of state-based incentives and financing options. For example, New York State and Connecticut municipalities have the NY Green Bank and Connecticut Green Bank, respectively, which are powerful resources for driving projects forward. These local programs are often more stable and specifically tailored to the needs of the municipalities they serve.
  • Double Down on Energy Efficiency
    Efficiency is the foundation of resilience and cost-savings. It’s a strategy that pays dividends regardless of legislative changes. Consider the Town and School District of Thomaston. Through a comprehensive energy savings performance contract, Energia was able to upgrade their infrastructure and secure $4.4 million in guaranteed savings. Similarly, the City and Public Schools of Waterbury are realizing over $50 million in energy and operational savings by focusing on foundational efficiency upgrades across 90 municipal and school buildings.
  • Embrace Resilient Technologies
    As the electrical grid becomes increasingly stressed, technologies that ensure operational continuity are no longer a luxury—they are a necessity. Microgrids, solar plus storage, and other resilient technologies are the key to protecting critical community assets like schools, police stations, and fire departments during an outage. The Guilford School District is a great example. Through a comprehensive Energy Services Agreement, they installed a 1.2 MWdc solar array and battery storage that will provide reliable power and reduce energy costs by $4.1 million over 20 years.

Energia: Your Strategic Partner for a Resilient Future

In this new reality, you need a partner who can provide certainty. At Energia, we have a long history of delivering results for towns just like yours. We understand the municipal process and have a proven track record of helping communities and school districts navigate complex energy projects.

Our approach is built on a Seven-Step Proven Process that methodically plans and executes projects from start to finish. We don’t just provide engineering; we provide an end-to-end solution, from the initial audit and strategic planning to securing state and local incentives and guaranteeing savings through our performance contracting model.

Our approach is built on a Seven-Step Proven Process that methodically plans and executes projects from start to finish

The challenge presented by OBBBA is significant, but it is not insurmountable. With a clear strategy and the right partner, you can continue to build a resilient, efficient, and affordable energy future for your community.


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