If the recent domestic policy bill proposed by House Republicans becomes law, thousands of homeowners across the U.S. may find their plans to install rooftop solar panels thwarted, potentially causing a significant decline in installations and jeopardizing the livelihoods of workers in the solar industry.
Rooftop Solar Set to Suffer as GOP Tax Bill Threatens Tax Credits
Rooftop Solar Set to Suffer as GOP Tax Bill Threatens Tax Credits
Proposed legislation could devastate rooftop solar boom, jeopardizing investments and jobs in the industry.
The rise of rooftop solar in the U.S. is nothing short of remarkable. Over the last 20 years, more than 5 million homes from California to Maine have benefitted from solar panel installations, capitalizing on federal tax credits that have made the investment appealing. However, the new legislation could bring this trend to an abrupt halt.
The House bill, which passed last month, aims to eliminate tax credits for homeowners and solar leasing companies effective by the end of the current year. Industry experts warn that if enacted, the reduction in incentives will lead to a drastic drop in installations. “This sets us back,” stated Ben Airth, the policy director for Freedom Forever, one of the country's largest residential solar installers. With over two decades of experience in the industry, he recalls a time when only affluent households or environmental enthusiasts embraced solar technology.
Analysis from Ohm Analytics suggests that a significant fall in residential solar installations could occur, estimating a decline by as much as half in the following year if the bill becomes law. Moreover, without tax credits, the time it takes for homeowners to recuperate their solar investments could stretch to an average of 17 years. A more alarming projection by Morgan Stanley indicates a potential 85 percent drop in demand through 2030.
While Republicans are also targeting tax breaks for alternative energy sources like wind and large-scale solar farms, the implications for rooftop solar installations could be particularly detrimental. Given that residential solar typically costs two to three times more per unit of electricity compared to large solar farms, the industry is particularly sensitive to any shifts in federal subsidies.
As the Senate prepares to draft its own version of the domestic policy bill, members of the solar industry are actively lobbying to reconsider the swiftly proposed wind-down of energy credits. They emphasize the industry’s importance, supporting around 300,000 jobs while also enabling homeowners to reduce their electricity costs significantly.
The House bill, which passed last month, aims to eliminate tax credits for homeowners and solar leasing companies effective by the end of the current year. Industry experts warn that if enacted, the reduction in incentives will lead to a drastic drop in installations. “This sets us back,” stated Ben Airth, the policy director for Freedom Forever, one of the country's largest residential solar installers. With over two decades of experience in the industry, he recalls a time when only affluent households or environmental enthusiasts embraced solar technology.
Analysis from Ohm Analytics suggests that a significant fall in residential solar installations could occur, estimating a decline by as much as half in the following year if the bill becomes law. Moreover, without tax credits, the time it takes for homeowners to recuperate their solar investments could stretch to an average of 17 years. A more alarming projection by Morgan Stanley indicates a potential 85 percent drop in demand through 2030.
While Republicans are also targeting tax breaks for alternative energy sources like wind and large-scale solar farms, the implications for rooftop solar installations could be particularly detrimental. Given that residential solar typically costs two to three times more per unit of electricity compared to large solar farms, the industry is particularly sensitive to any shifts in federal subsidies.
As the Senate prepares to draft its own version of the domestic policy bill, members of the solar industry are actively lobbying to reconsider the swiftly proposed wind-down of energy credits. They emphasize the industry’s importance, supporting around 300,000 jobs while also enabling homeowners to reduce their electricity costs significantly.
