Core Viewpoint - The OBBB Act signed by Trump marks a significant shift in U.S. energy policy towards traditional fossil fuels, while maintaining tax credits for energy storage, which could impact the renewable energy sector negatively [1][15]. Group 1: Key Changes in Tax Credits - The storage ITC subsidy has been extended from 2032 to 2036, providing a longer policy support window for the energy storage industry [2][4]. - The OBBB Act modifies the IRA's clean energy tax credits, particularly affecting battery storage systems under sections 48E and 45Y, with construction start dates typically set for 2033 [2][4]. - The new FEOC (Foreign Entities of Concern) provisions restrict tax credits for projects involving certain foreign entities, particularly those from China, Russia, Iran, and North Korea [7][9]. Group 2: Impact of FEOC Restrictions - The FEOC restrictions may hinder U.S. energy storage projects by excluding foreign entities from receiving tax credits, which could lead to increased project costs and delays [18][19]. - The threshold for material assistance from prohibited foreign entities will increase from 55% to 85% over the next few years, complicating compliance for U.S. developers [10][16]. - The complexity of FEOC rules may deter foreign direct investment in the U.S. clean energy sector, particularly from companies with ties to Chinese entities [19][21]. Group 3: Market Dynamics and Strategic Adjustments - U.S. developers may need to eliminate reliance on Chinese supply chains to qualify for tax credits, potentially leading to strategic shifts in sourcing and production [20][21]. - The anticipated increase in project costs due to the need for domestic sourcing could impact the overall competitiveness of U.S. energy storage projects [18][21]. - The uncertainty surrounding policy changes and the expiration of tariff suspensions on Chinese batteries may further complicate investment decisions in the U.S. storage market [16][18].