US Solar Energy Takes a Hit: What You Need to Know

A new bill, nicknamed the "Big, Beautiful Bill, " is causing quite a stir in the US clean energy scene. It aims to make big changes, but not all of them are good for solar power. Even though some harsh parts were removed, the bill still poses a threat to the domestic solar industry. The bill weakens many clean energy programs from the 2022 Inflation Reduction Act. It removes incentives for solar power and the Clean Electricity Production Credit. Additionally, it cuts the Domestic Content bonus, which encouraged using US-made equipment. Some parts, like the excise tax on renewable energy, were dropped. This tax would have charged extra for projects using foreign materials, favoring coal and gas plants over renewable energy. Rob Gardner, Vice President of Congressional and Regulatory Affairs for SEMA, explained the bill's impact. He noted that production tax credits for clean energy components are still in place. However, the bill creates uncertainty for long-term demand for US products. American-made solar panels are pricier due to higher costs. Without incentives, Chinese-made panels could flood the market. The US Environmental Information Administration predicts a 2% growth in domestic energy consumption next year. Renewables made up almost 90% of new power generation capacity in 2024. Despite the bill's changes, solar power is likely to remain the top choice for new power generation. Abigail Ross Hopper, CEO of the Solar Energy Industries Association, criticized the bill. She stated it undermines America's manufacturing comeback and will lead to higher electric bills, factory closures, job losses, and a weaker electric grid. Jason Grumet, CEO of the American Clean Power Association, called the bill a step backward and an intentional effort to undermine renewable energy. Environmental groups also expressed concerns. Greenpeace USA's John Noël called the bill a dark day for climate change efforts. Environmental Defense Fund's Joanna Slaney noted it cuts off cheap energy supply while offering a 10-year reprieve on methane pollution fees.