An election year always raises crucial questions about the future of solar energy, especially under a potentially shifting administration. While candidates may hold differing views on climate policy, the long-term direction of clean energy incentives will depend heavily on the political balance in Washington.
Yet, the need for sustained bipartisan support for the transformation of the solar market, both nationally and locally, cannot be overstated. A political system that lurches from one extreme to another every few years only prolongs our vulnerability to extreme weather events with the destructive power of Helene and Milton
Fortunately, there are several ways that political leaders – at all levels and on all sides – can help sustain the forward momentum into clean energy.
Keep the federal clean energy incentives
Starting in 2022, the federal government began offering a wide range of tax credits and other incentives to encourage states, local entities, businesses, and consumers to move to solar and other clean energies. Those incentives added momentum to the solar market transformation that’s been good for businesses and good for consumers.
Many consumers have already saved on their electricity bills due to these incentives and so have major oil companies. Treasury Department data reported that in 2023, 3.4 million American families saved $8.4 billion on clean energy and energy efficiency investments. These tax credits are lowering the costs of clean energy and energy efficiency upgrades to their homes for millions of Americans.
Federal clean energy incentives have also helped create new jobs in the solar and clean energy industries, and the monetary impacts of those new jobs are still filtering out into the larger economy. Those monetary benefits have also put American-made solar products in a more competitive position with China, which is a significant player in this industry. It would be economically detrimental for a change in political leadership to negatively impact domestic manufacturing, job creation and harm America’s competitive posture.
Former President Trump has claimed he wants to roll back the regulations that created the federal clean energy incentives. However, he has also said he’s a big fan of solar power, so it’s not totally clear what he would do. But it’s hard to see how gutting federal clean energy incentives would help the U.S. economy.
States’ role in stabilizing the clean energy market transformation
It’s important to note that even if there are significant changes in federal policy toward solar power, states can help ensure that the benefits of solar continue reaching businesses and households. In some states, that’s already happening.
For example, Illinois has positioned itself to be a leader in the clean energy market transformation. They implemented the “Illinois Shines” program to help both residential and commercial solar installers by offering Solar Renewable Energy Credits. These credits incentives help reduce the cost of installation while encouraging widespread adoption.
States also can lower the cost of solar through mandating utilities to create streamlined interconnection processes while municipal building departments adopt tools, such as SolarAPP+ to create instant permitting. They can control these factors regardless of what happens at the federal level.
Of course, it’s also true that states can implement policies that hinder the move to clean energy. Arkansas, which had been making significant gains in solar, recently implemented a law that reduces existing incentives for moving to solar. Hopefully, the economic disincentives the new law brings will lead the state to rethink this move.
Moving to solar helps local economies and the grid
Solar power isn’t just good for the environment; it has a measurable, positive impact on local economies. Federal clean energy incentives have led to the opening of manufacturing facilities that produce solar equipment, electric car batteries, and other products, such as solar racking and mounting systems, that are used in the clean energy transition.
These new facilities create local jobs that pump money directly into those communities. One notable example is Georgia, known for creating nearly 30,000 clean energy jobs. As noted, many consumers that have adopted solar power are already seeing real savings on their energy expenses. That provides a visible incentive for their neighbors to make the move to solar as well.
Having viable clean energy options available to consumers also adds resiliency to our nation’s energy grid. When severe weather or other factors knock out the grid in a particular area, consumers with access to solar have been able to power lights, maintain heating and cooling, communication, and power medical equipment until the damaged parts of the grid are repaired. All are critical components in times of crisis.
I believe the solar industry can do an even better job of educating consumers and policymakers about the economic benefits of clean energy by clearly showing how renewable energy directly impacts overall financial and social well-being. The connection between clean energy, economic self-interest and the long-term benefit for future generations can be made even more evident through proper messaging.
Stabilizing energy market transformation
Everything discussed underscores the urgent need for stable and predictable solar and clean energy policies at both federal and local levels. It’s in everyone’s best interest to continue the market transformation already underway, and this should undoubtedly have consistent, bipartisan support.
The back-and-forth shifts in energy policy, depending on who is in leadership in the White House and Congress, has created a ‘solar coaster,’ the buzzword used to describe the up and down volatility of the solar industry, making it hard to maintain steady momentum. It’s time for this solar coaster to incline toward a path of growth but level set.
Consistent energy policies benefit the economy, businesses, consumers, and the energy grid. They also support job creation and generate new revenues in communities that desperately need an economic boost. If we can maintain bipartisan support for clean energy and the federal incentives that are aimed at transforming our energy markets to the adoption of clean, renewable energy, communities across the US can reap the benefits.
Ben Airth is the policy director at Freedom Forever, a national residential solar installation company with operations in over 35 states, the District of Columbia and Puerto Rico. He leads the company’s engagement with state and federal policy issues affecting its business. Before joining Freedom Forever in December 2022, Ben spent nearly 20 years at the Center for Sustainable Energy (CSE), where he oversaw solar incentive programs and contributed to shaping the solar market. He also serves as secretary for The Solar Energy Industries Association (SEIA).
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