Solar industry poised for action following Republican proposal to phase out IRA tax credits

In a push to safeguard the future of the solar energy sector, the Solar Energy Industries Association (SEIA) is urging lawmakers to reconsider the draft reconciliation package put forth by the House Ways and Means Committee. The package, currently undergoing mark-up, could potentially alter the landscape of energy investment and production tax credits for solar, batteries, wind, and nuclear technologies.

The SEIA, an influential trade association representing various solar energy entities, has been emphasizing the importance of the Inflation Reduction Act (IRA) and tax credits. These measures are crucial for managing energy costs and fostering economic development, according to the association.

The draft reconciliation package, however, proposes a decrease in the value of these energy investment and production tax credits, with a sunset starting in 2028. This proposed change has sparked concern within the solar industry, particularly within the residential sector.

TR Ludwig, CEO of Brooklyn SolarWorks, is among those voicing concerns. He is focusing on preserving the residential solar credit 25D, fearing the potential impact on small residential solar companies, particularly those relying on Chinese supply chains.

Brooklyn SolarWorks, along with the Amicus Solar Cooperative, plans to lobby lawmakers to preserve these tax credits that have spurred significant investment in the solar industry. Their efforts aim to highlight the economic engine built around the 25D credit serving residential customers and the potential harm of removing it.

In a letter to House Speaker Mike Johnson and other Republicans in leadership, a group of nearly 300 companies and trade organizations encouraged the preservation of the existing energy tax structure.

SEIA, led by Abby Hopper, its president and CEO, has stated that the current draft reconciliation package is a "bad bill." The proposed end of the residential solar credit 25D this year under the package has raised alarm within the industry.

Despite these concerns, the mark-up of the draft is ongoing, with expectations that it will last at least until July, possibly as late as September. SEIA plans to continue engaging with elected officials to ensure American energy dominance prevails.

As for the search for organizations planning to praise the extension of the 25D tax credit for purchasing home solar systems, no such results are currently available. Meanwhile, Brooklyn SolarWorks has hired a paid lobbyist in Washington, D.C., targeting members of Congress who they believe can be swayed toward supporting the solar ITC and the 25D tax credit.

Amid these uncertainties, Ludwig expresses concerns about meeting potential panic-fueled demand for solar systems due to an end-of-year deadline for cheaper solar systems and other market uncertainties. The solar industry, as a whole, remains vigilant and committed to advocating for policies that support its growth and sustainability.

Solar industry poised for action following Republican proposal to phase out IRA tax credits