Retooling Procurement: Navigating the Post-Subsidy Era in Renewables

At Projects & Money in New Orleans, COO & Co-Founder Amanda Li took the stage to share her insights on the panel, “Renewable Developers' Perspectives: Preparing for a Post-Subsidy Era.” Leaders from across the solar and storage sectors sat down to discuss how they are retooling their operations, restructuring their capital stacks, and deciding which projects are worth the risk in 2026 and beyond.

Rounding out the panel, Amanda was joined by Nick Addivinola, Vice President of M&A at Nautilus Solar, Becca Glazer, Vice President of Finance at Cloudbreak Energy, Jesse Grossman, CEO & Co-Founder of Soltage, and Vitaly Lee, Executive Vice President and Chief Development Officer of Hanwha Renewables. 

Retooling Procurement: Navigating the Post-Subsidy Era in Renewables

The renewable energy industry is experiencing a massive shift, as Vitaly Lee of Hanwha Renewables aptly stated, “this is not a status quo, this is a reset.” 

On one hand, all available capital and manpower has been dedicated to getting as many projects into safe harbor as possible while ITC benefits remain. At the same time, it’s essential for executives across the renewable landscape to take a hard look at their operating models and determine their plan for the post OBBB era. 

Solar demand remains strong as the fastest way to get electrons on the grid, but developers are facing higher expenses than ever before. Nick Addivinola, Vice President of M&A at Nautilus Solar shared,  “transaction costs have not come down, legal fees are higher than ever, engineering is more… it takes longer today to get a transaction done than it did 10 years ago”. 

From tightening procurement domestic content requirements to ballooning project timelines, the industry is racing to understand the fastest route to recouping margins lost as investment tax credits sunset. 

The Changing Strategies of the Modern Developer

As the industry moves away from a "business as usual" mindset, Amanda Li shared four distinct business strategies emerging among developers in today’s market:

1. The "Safe-harborers": Focused on securing current tax credits before rules shift further.
2. The "War Chest" Players: Well-capitalized entities looking for M&A opportunities in a consolidating market.
3. The "Distressed" Group: Developers struggling with the new complexities and looking for an exit.
4. The "Post-ITC" Visionaries: Nimble developers already planning for a world where traditional subsidies are no longer the primary driver.

For companies like Hanwha Renewables, the response has been structural. Vitaly shared that their recent reorganization into a single platform was designed specifically to move away from the status quo and toward a more integrated model that leverages their 8.4GW of domestic module production.

Soltage’s Jesse Grossman covered the best practices they are deploying to make projects pencil out in 2026 and beyond, such as tightening their financing timelines, “pre-NTP should be 3-6 months - previously some thought it could be up to 3 years!” and grouping projects together to reach profitability, “we would never develop a one off 5 MW project, but get 50 or 100 of those projects and then you have the economies of scale.” 

A New Era of Partnership: EPCs and Financiers

The relationship between developers and their partners is becoming more "high-stakes and forensic." The panel agreed that the days of loose due diligence are over.

• Increased Responsibility: EPCs are increasingly taking on the burden of purchasing their own equipment and seeking more strategic guidance from developers.
• Heightened Diligence: Becca Glazer of Cloudbreak Energy and Nick Addivinola of Nautilus Solar both emphasized that financiers are now requiring a level of granular planning in due diligence—especially regarding component origin—that was rarely seen a decade ago.
• Creative Underwriting: Leaner teams are adopting "bottom-up" underwriting approaches to stay competitive in high-barrier markets like the Northeast and Southwest.

The 2026 Outlook: Efficiency as the Ultimate Strategy

When asked about the top operational challenge for 2026, the panel's consensus was clear:  margin compression. With the rising costs of labor, modules, and interconnection, "innovation" is no longer just about technology—it’s about operations. The panel broadly agreed that the organizations able to remove the inefficiencies of their process and unlock scale can replace the profitability lost from the ITC.

"The industry is maturing," noted Amanda Li. "Integrating tools to reduce SG&A, and drive efficiency in projects creates the ability to scale without becoming overburdened by inefficiencies and headcount growth."

As the industry prepares for the next 12 to 18 months, the message is clear: The winners won't just be those who secure the most credits, but those who can adapt their operational strategies to reduce waste.