The US solar power industry is facing a major threat after House Republicans passed a sweeping bill that would effectively repeal key tax credits supporting its rapid growth. The bill’s impact could lead to job losses, higher electricity prices, and reduced generation of clean energy at a time when demand for renewable sources is growing.
Analysts predict that the legislation will have a devastating effect on solar stocks, with shares plummeting on Thursday. Industry leaders, including Solar Energy Industries Association CEO Abigail Ross Hopper, warn that the bill would “upend an economic boom” and result in significant job losses, including up to 250,000 positions.
The bill’s provisions also target wind power, which is growing at a slower pace than solar. The termination of investment and electricity production credits for clean energy facilities could lead to a decline in the deployment of clean energy projects by 57-72% over the next decade, according to Rhodium Group.
While some Republican senators have expressed concerns about the bill’s impact on job creation, industry experts warn that the effects would still be severe. The solar industry has invested over $161 billion in large projects since 2022, and a slowdown in deployment would come at a time when electricity demand is increasing due to growing industries like artificial intelligence.
Renewable energy sources, including solar and wind power, are poised to continue deploying despite the threat from the bill, as there is no alternative to meet the growing demand for clean energy. The Energy Information Administration predicts that solar and battery storage will account for 81% of expected power additions to the grid in 2025.
Industry analysts predict that the “one, big, beautiful bill” advocated by President Donald Trump would ultimately shield the industry from federal support for renewable energy, but the current version of the bill may be more devastating than initially feared. The bill’s harshest provisions would likely be softened if it passes the Senate, where analysts expect the “unworkable” provisions to be revised or removed.
Source: https://www.cnbc.com/2025/05/24/how-the-us-clean-energy-boom-could-go-bust-if-trumps-big-beautiful-bill-becomes-law.html