The US solar industry is booming, with tens of billions of dollars invested in factories and projected to create nearly 60,000 manufacturing jobs. However, Congress’s plans to roll back clean-energy tax credits threaten to undo the progress made so far. The incentives, passed under President Biden’s administration, encouraged companies to use American-made products, such as solar panels and components.
Industry executives say that without these incentives, companies will opt for cheaper foreign panels, leaving American manufacturers “stranded.” The stakes go beyond US production; scaling up domestic manufacturing could help counter China’s dominance in the sector. Manufacturers like Scott Moskowitz of Qcells argue that removing tax credits too quickly would cripple demand for solar panels and components produced in the US.
The US has tried to foster domestic solar manufacturing through tariffs, but these efforts have been insufficient. The Inflation Reduction Act’s incentives marked a breakthrough, but lawmakers’ plans to phase out tax credits starting next year raise concerns about the industry’s future. Advocates, including Craig Lawrence of Energy Transition Ventures, warn that the industry will face “painful years” without these incentives.
Supporters, such as Heather Reams of Citizens for Responsible Energy Solutions, argue for delaying phasing out tax credits until after 2027 to provide market certainty. Manufacturers like McDaniel of his Indianapolis solar company are worried about the impact on investment and hiring decisions due to uncertain demand. The US solar industry is racing against time to sway Republican lawmakers before July 4, when Congress must deliver a tax-and-spending bill.
Source: https://www.npr.org/2025/06/27/nx-s1-5442376/manufacturing-congress-solar-energy-tax-cuts-roll-back