{"id":31967,"date":"2025-06-11T09:48:33","date_gmt":"2025-06-11T09:48:33","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/why-rooftop-solar-could-crash-under-the-republican-tax-cut-bill\/"},"modified":"2025-06-11T09:48:33","modified_gmt":"2025-06-11T09:48:33","slug":"why-rooftop-solar-could-crash-under-the-republican-tax-cut-bill","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/why-rooftop-solar-could-crash-under-the-republican-tax-cut-bill\/","title":{"rendered":"Why Rooftop Solar Could Crash Under the Republican Tax-Cut Bill"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Over the past two decades, more than 5 million U.S. households from California to Georgia to Maine have put solar panels on their roofs, drawing energy from the sun and reducing their electric bills.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But that could soon come to a crashing halt.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/article\/house-gop-tax-bill-trump.html\" title=\"\">big domestic policy bill<\/a> passed by House Republicans last month would, by the end of this year, eliminate tax credits for homeowners and solar leasing companies that have fueled the popularity of rooftop solar. If it becomes law, it would lead to an immediate plunge in installations, analysts and companies say.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis sets us back,\u201d said Ben Airth, policy director for Freedom Forever, one of the country\u2019s largest residential solar installers. \u201cI\u2019ve been in this industry 22 years and remember when it was only rich people, doomsday preppers and environmentalists installing solar panels on their roofs.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">One analysis by Ohm Analytics, an energy data firm, estimates that <a class=\"css-yywogo\" href=\"https:\/\/hs-21752392.f.hubspotstarter.net\/hub\/21752392\/hubfs\/Ohm%20Analytics%20Resi%20ITC%20Removal%20Modeling.pdf?utm_medium=email&amp;_hsenc=p2ANqtz--u8heDc_zoW3Gd0FY4iURpT-FNigVvKA1iW0Tt941xjsZoTVa9aijZkyQ6-CVM2y2QzNFYDDhMEj9HPqur85dTk-FVqTzhvzswNGjdB5BbH2Cl0iM&amp;_hsmi=364745870&amp;utm_content=364745870&amp;utm_source=hs_email\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">residential solar installations could fall by half next year<\/a> if the House bill becomes law. Without the tax credits, it would take 17 years, on average, for homeowners to earn back their solar investments. A more pessimistic analysis by Morgan Stanley projects that rooftop solar demand could fall by 85 percent through 2030.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">While Republicans want to curb tax breaks for other renewable energy technologies like wind turbines and large-scale solar farms, the consequences for rooftop solar could be more severe. Rooftop solar <a class=\"css-yywogo\" href=\"https:\/\/www.lazard.com\/research-insights\/levelized-cost-of-energyplus\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">can cost two to three times as much<\/a> per unit of electricity as large solar arrays on farms or in deserts, and the residential industry is more vulnerable to shifts in subsidies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Senate is now writing its version of the domestic policy bill, and solar executives have descended on Washington to plead for a more gradual wind-down of the energy credits. They note that the solar industry employs roughly 300,000 workers and that rooftop systems can help homeowners cut their electric bills.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Yet some conservative Republicans have made clear they oppose any restoration of tax breaks for renewable energy.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThose God forsaken subsidies are killing our energy, killing our grid, making us weaker, destroying our landscape, undermining our freedom,\u201d Representative Chip Roy, Republican of Texas, said on the House floor last week. \u201cI\u2019m not going to have it.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The uncertainty is upending an industry that was already struggling with tariffs and high interest rates. Last week, Solar Mosaic, which provided loans to homeowners to install rooftop panels, <a class=\"css-yywogo\" href=\"https:\/\/www.businesswire.com\/news\/home\/20250606407493\/en\/Mosaic-Takes-Strategic-Action-to-Restructure-and-Recapitalize-with-the-Support-of-Its-Lender-to-Position-the-Company-for-the-Future\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">declared bankruptcy<\/a>. On Monday, Sunnova Energy, one of the nation\u2019s largest rooftop solar companies, <a class=\"css-yywogo\" href=\"https:\/\/investors.sunnova.com\/news-events-and-presentations\/news-details\/2025\/Sunnova-Announces-Strategic-Action-to-Facilitate-Value-Maximizing-Sale-Process\/default.aspx\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">followed suit<\/a>.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Some experts say rooftop solar will eventually rebound, even without subsidies, if electricity prices <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/06\/04\/climate\/electricity-prices-republican-big-beautiful-bill.html\" title=\"\">keep rising around the country<\/a>, which would make the economics of going solar more favorable. But the adjustment period is likely to be painful, with more bankruptcies and layoffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe\u2019re not expecting residential solar to go away,\u201d said Zo\u00eb Gaston, a principal analyst for residential solar at Wood MacKenzie, an energy research firm. \u201cBut it will be smaller.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-4809de7c\">Major tax changes<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">For two decades, Congress <a class=\"css-yywogo\" href=\"https:\/\/www.solarreviews.com\/blog\/tax-credit-history-home-solar\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">has offered tax breaks<\/a> for people who put solar panels on their roofs. But Democrats supersized those subsidies in the 2022 Inflation Reduction Act, which plowed hundreds of billions of dollars into technologies meant to fight climate change.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The law extended the <a class=\"css-yywogo\" href=\"https:\/\/homes.rewiringamerica.org\/federal-incentives\/25d-rooftop-solar-tax-credit\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">residential solar credit<\/a>, which allows homeowners to recoup 30 percent of the cost of a solar system they own, through 2032. It also expanded an <a class=\"css-yywogo\" href=\"https:\/\/www.novoco.com\/resource-centers\/renewable-energy-tax-credits\/about-renewable-energy-tax-credits#:~:text=Investment%20Tax%20Credit%20(ITC)&amp;text=Inflation%20Reduction%20Act%20extended%20the,eliminated%20to%200%25%20in%202035.\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">investment tax credit<\/a> for companies that build low-emissions sources of electricity like solar and batteries.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The latter change fueled a boom in solar leasing, in which homeowners don\u2019t have to pay the upfront cost of a rooftop solar system that can run $30,000 or more. Instead, a company owns the panels and keeps the tax credits. The homeowner leases the equipment from the company and ideally, saves money through lower energy bills.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">More than 50 percent of home solar systems are now financed this way, and the rise of leasing has made rooftop solar more accessible to less-wealthy households, as well as to schools, hospitals and small businesses.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The House Republican bill would terminate the residential solar tax credit by the end of 2025. And, in a last-minute change pushed by fiscal conservatives, solar leasing companies <a class=\"css-yywogo\" href=\"https:\/\/www.energysage.com\/news\/congress-threatens-to-end-solar-tax-credit\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">would be immediately ineligible<\/a> for the investment tax credit.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The House bill would also forbid companies from claiming the tax credits if they use components from China, which dominates solar supply chains. Because that provision is so broadly written, many companies say it would effectively make the credits unusable.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cCatastrophic is a fair way to describe the industry impact\u201d of the House bill, said Gregg Felton, chief executive of Altus Power, which develops solar projects on rooftops and parking lots.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">If Congress slashed support for renewable energy, experts said companies would continue investing in large-scale solar arrays, since even without subsidies those plants are often one of the cheapest ways to generate additional electrons. Rooftop solar, which is costlier and requires more labor, faces greater risks.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Kenny Pfannenstiel, the chief operating officer at Big Dog Solar, an Idaho-based solar installation company, said that rooftop solar has lately grown popular in newer markets like Montana and Idaho.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe see a lot of interest from people who want to control their own energy future, or who worry about the grid being available when they need it,\u201d Mr. Pfannenstiel said. Once the tax credits were expanded, he said, \u201cthe economic argument for those customers to install solar and battery systems became a lot stronger.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If the credits vanished, some customers might still want panels, he said, but the market \u201cwould shrink drastically.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The ripple effects could be significant. If solar leasing companies go bankrupt, customers could be left in the lurch, with no one left to service their panels. Thousands of installers and electricians would find themselves out of work.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">More than three dozen solar factories have opened in the United States in recent years, but some could shutter if demand slows.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Freedom Forever, the California-based solar installer, says that two years ago none of its equipment was sourced from the United States; today, roughly 85 percent is, including inverters made in Texas and Florida. That\u2019s partly because of provisions in the Inflation Reduction Act that provided a bonus credit for using domestic components.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If the credits go away, \u201cthe industry will just go back to using the cheapest modules, which are typically made overseas,\u201d Mr. Airth, the company\u2019s policy director, said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<h2 class=\"css-13o6u42 eoo0vm40\" id=\"link-52586625\">A debate over rooftop solar<\/h2>\n<p class=\"css-at9mc1 evys1bk0\">The fight over tax credits in Congress isn\u2019t the only challenge facing rooftop solar. While the technology remains popular with homeowners, some states have started pulling back support amid a barrage of criticism.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-8\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Electric utilities and some analysts say that rooftop solar users <a class=\"css-yywogo\" href=\"https:\/\/energyathaas.wordpress.com\/2024\/04\/22\/californias-exploding-rooftop-solar-cost-shift\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">raise costs for everyone else<\/a>, because solar households pay less on their monthly utility bills but still rely on the broader grid for backup power. That shifts the cost of maintaining the grid to other households, which are often low-income. (<a class=\"css-yywogo\" href=\"https:\/\/ilsr.org\/articles\/rooftop-solar-makes-electricity-cheaper-utility-cost-shift-myth\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Solar proponents disagree<\/a>, saying that utilities ignore many benefits of rooftop panels, such as avoided transmission costs.)<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The fight has been especially fierce in California, the country\u2019s biggest rooftop solar market. In 2022, regulators slashed the compensation that new solar households could receive for the electricity they produce. In the months that followed, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/01\/14\/business\/energy-environment\/california-rooftop-solar.html\" title=\"\">rooftop installations fell 85 percent statewide<\/a>, straining installers, manufacturers and distributors.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Even now, some officials are looking to cut support further, including for <a class=\"css-yywogo\" href=\"https:\/\/a56.asmdc.org\/press-releases\/20250502-ab-942-passes-assembly-committee-utilities-and-energy\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">existing homes<\/a>. \u201cWe have to re-evaluate how our current solar subsidy programs impact Californians who may not be able to afford solar-panel systems,\u201d said Lisa Calderon, a Democratic state lawmaker.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The rise in interest rates has further squeezed the rooftop solar industry, by making it more expensive to borrow money to finance new installations. The Trump and Biden administrations also increased tariffs on solar components from China, which aids domestic manufacturers but makes panels more expensive.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Some in the rooftop solar industry say they have to focus on cutting costs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Not only are rooftop systems more expensive than large utility-scale solar farms, but the cost of a home solar system in the United States can be three times the cost of a comparable system in Australia. Some analysts <a class=\"css-yywogo\" href=\"https:\/\/www.energysage.com\/solar\/why-is-solar-more-expensive-in-the-us\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">blame differences in permitting<\/a> processes.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-9\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cAt some point our industry can and should be able to function without tax credits,\u201d said Chris Hopper, co-founder of Aurora Solar, a software company that designs home solar systems. \u201cI do think we could get on board with a phase-down of these credits over an appropriate time period that gives us time to figure out how to find efficiencies and lower costs.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cBut an overnight change would be devastating,\u201d Mr. Hopper said. \u201cIt\u2019s just not possible to adapt that quickly.\u201d<\/p>\n<p class=\"css-798hid etfikam0\">Ivan Penn<!-- --> contributed reporting<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/06\/11\/climate\/rooftop-solar-republicans-congress.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past two decades, more than 5 million U.S. households from California to Georgia to Maine have put solar<\/p>\n","protected":false},"author":1,"featured_media":31968,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[185,103,331,114,733,750,181,182,436,104,203,5787,714,732,330,660,113,168,111],"class_list":["post-31967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","tag-alternative-and-renewable-energy","tag-biden","tag-deductions-and-exemptions","tag-donald-j","tag-electric-light-and-power","tag-energy-and-power","tag-global-warming","tag-greenhouse-gas-emissions","tag-house-of-representatives","tag-joseph-r-jr","tag-republican-party","tag-roofs","tag-senate","tag-solar-energy","tag-tax-credits","tag-taxation","tag-trump","tag-united-states","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Rooftop Solar Could 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