With the recent domestic policy bill from House Republicans aiming to eliminate tax breaks for rooftop solar, installations may plummet, impacting both the industry and homeowners seeking savings.
Rooftop Solar's Future Threatened by New G.O.P. Tax Policy
Rooftop Solar's Future Threatened by New G.O.P. Tax Policy
Proposed tax reforms could significantly decrease solar panel installations across the United States.
Over the last twenty years, rooftop solar has gained traction across the United States, reaching over 5 million homes from California to Maine. This growth has been supported by federal tax credits which incentivized homeowners to install solar panels. However, recent legislative moves by House Republicans threaten to undo this progress.
A domestic policy bill passed last month proposes to eliminate these tax credits by the end of the current year. If enacted, analysts predict a drastic reduction in new installations. Ben Airth, the policy director at Freedom Forever, expressed concern, stating this could set the industry back significantly. According to a projection from Ohm Analytics, residential solar installations could be cut in half next year, while Morgan Stanley's more pessimistic view anticipates an 85% decrease in demand for rooftop solar by 2030.
Unlike larger solar installations, which can benefit from economies of scale, rooftop solar tends to be more expensive to produce and maintain, making it particularly susceptible to changes in subsidy policies. As the Senate drafts its version of the bill, solar executives are advocating for a more gradual phase-out of tax incentives, highlighting the sector's vital contribution of approximately 300,000 jobs. They also emphasize the benefit of rooftop systems in helping homeowners save on energy costs.
As debates continue in Washington, the fate of rooftop solar hangs in the balance, raising alarms among advocates who fear a significant setback in the push for renewable energy.
