The removal of key electric vehicle (EV) and solar subsidies has sparked concern about the future growth of these industries in the US. However, it may actually accelerate their adoption due to a critical component: Democrats retaking Congress and the White House.
For now, incentives like the investment tax credit for solar projects will continue through 2025, leading to an influx of new installations. This surge will drive market demand before the incentives are phased out. A similar effect is expected in the EV market with the removal of the $7,500 tax credit, which could boost sales in the short term.
The benefits of these temporary incentives include:
* Increased attention for both industries, stimulating demand beyond what would have been driven by subsidies alone.
* Automakers cutting costs to remain competitive, benefiting consumers and driving down prices.
* Lower prices for consumers when (and if) new incentives are introduced, thanks to cost-cutting measures.
This could accelerate the transition to electric vehicles in the US. If Democrats regain control of Congress and the White House, they can revive these subsidies, potentially leading to increased awareness, lower prices, and a more sustainable energy future.
Source: https://cleantechnica.com/2025/07/12/how-republican-policies-to-kill-ev-solar-incentives-could-lead-to-more-ev-solar-sales-with-1-critical-component