The Solar Energy Industries Association provided analysis of the devastating impact the changes to energy tax credits will have on jobs, manufacturing and the ability to meet the country’s rapidly growing energy demand.
The Solar Energy Industries Association (SEIA) provided analysis in the report America’s solar industry is under threat, which details what the organization believes will happen to the burgeoning industry if the reconciliation legislation is passed as written.
The reconciliation bill presented by the U.S. House Ways and Means Committee and advanced through the House Budget Committee could jeopardize nearly 300 U.S.-based solar and storage factories and lead to the loss of 145,000 GWh of solar generation by 2030, according to the report.
Job creation has been strong since passage of the clean energy tax credits in 2022. By 2033, SEIA expects the U.S. solar manufacturing workforce to grow to 100,000, barring changes to tax credits. In the new report, SEIA warns that if the bill is enacted as written, nearly 300,000 current and future jobs may be lost, including 86,000 in solar manufacturing.
Momentum
In 2017 at the start of President Trump’s first term in office, the United States ranked 14th in the world for solar manufacturing. Today it is the third largest solar manufacturing economy in the world. No longer reliant on solar modules from China and other nations, enough solar modules are now produced in the United States to serve the domestic market.
“There is still time to improve this bill which, as written, represents a crisis for America’s ability to build the energy infrastructure we need to meet surging demand,” said SEIA President and CEO Abigail Ross Hopper. “If this proposal becomes law, nearly 300 U.S. factories—mostly in red states—could close or never open, and we simply won’t have the energy we need to power American innovation in AI and data centers.”
SEIA estimates that, if enacted, the bill could trigger an immediate decline in solar and storage investments that could amount to $220 billion in investment by 2030.
Load growth
A recent study conducted by PA Consulting for National Electrical Manufacturers Association (NEMA), “A Reliable Grid for an Electric Future,” forecasted a 300% rise in energy consumption by data centers alone.
An all-of-the above approach will be needed to add energy to the grid fast enough to meet the demand. As shown in the chart below, solar and storage is the fastest energy to reach deployment.
If Congress cuts these incentives, SEIA said energy production will fall 145 TWh and “America will not be able to meet demand, leading to blackouts and a surrender of the AI race.”
“Passing this bill would create a catastrophic energy shortfall, cede AI and tech leadership to China, and damage some of the most vital sectors of the U.S. economy,” Hopper added. “But the story isn’t over. The Senate has the opportunity to put forward a more thoughtful and measured proposal that achieves President Trump’s American energy dominance vision.”
SEIA is urging the industry to contact their representatives to urge revisions to the legislation to protect jobs, keep manufacturing in America and to promote the build out of solar and energy storage at a time when we need it most.
