How the U.S. clean energy boom could go bust if Trump’s ‘big, beautiful bill’ becomes law
Solar power executives had hoped that their investments in Republican districts would protect them from President Donald Trump’s threats to cut federal support for renewable energy.
However, the tax bill passed by House Republicans has sent shockwaves through the solar industry. Analysts at Jefferies described it as a “worse than feared scenario” for solar, leading to a significant sell-off of solar stocks.
The bill aims to eliminate crucial tax credits that have been vital for the industry’s growth. Despite the need for Senate approval, the current provisions are causing concern.
Abigail Ross Hopper, CEO of the Solar Energy Industries Association, criticized the bill for its potential to disrupt the country’s economic progress and manufacturing renaissance driven by solar power.
The bill has been labeled as “willfully ignorant” of the contributions of solar power and battery storage in meeting energy demands and warned of potential blackouts if it becomes law.
Sunrun CEO Mary Powell expressed concerns about job losses and increased electricity costs for consumers due to the legislation. The company’s shares plummeted following the bill’s passage.
President Trump urged the Senate to swiftly pass the bill, emphasizing the need for immediate action.
Impact on Clean Energy Sector
The tax bill threatens to undo the progress made in the clean energy sector, with over $161 billion invested in solar and battery projects since 2022.
Solar and battery storage have been key contributors to the U.S. energy landscape, but the bill’s provisions could hamper their growth by eliminating essential tax credits.
Experts warn that the bill could lead to a significant decline in clean energy deployment, impacting the grid’s ability to meet future energy demands.
Potential Revisions by GOP Senators
Republican senators are raising concerns about the bill, suggesting that revisions may be necessary to safeguard job creation and economic growth in the clean energy sector.
The bill’s impact on GOP districts, which have benefited from renewable energy investments, is also a point of contention.
As the debate continues, the future of the clean energy industry hangs in the balance, with implications for job stability and energy affordability.
