As the U.S. prepares for a second term for the Trump Administration, the solar industry faces a new era of both challenges and opportunities. In this interview with Solar Power World, Wilson Chang, CEO of the solar and storage development and management platform Sunrock Distributed Generation, discusses current trends in the solar market and shares his predictions on how potential policy shifts from the incoming administration could shape the sector’s future.
SPW: What changes have taken place in the solar industry since Donald Trump’s previous term in office?
Chang: The solar industry has advanced significantly since the last Trump administration, with distributed solar now the most cost-effective energy source in many parts of the U.S. Despite potential policy shifts, the sector’s fundamentals remain strong: Efficiency is rising, costs are falling and retail energy prices continue to climb.
As the Trump Administration enters a second term, the U.S. solar industry is in a much stronger position than before. Solar panel production in the U.S. is increasing, and with a rapidly digitizing world, increasing numbers of electric vehicles and Silicon Valley’s relentless drive to create increasingly powerful and power-consuming AI, demand for power is increasing dramatically.
According to the Solar Energy Industries Association (SEIA), solar contributed 67% of all new electricity-generating capacity added to the U.S. grid in the first six months 2024. Thanks to federal incentives, domestic solar manufacturing has grown four times over in recent years, putting the U.S. in a strong position to meet its solar deployment goals with locally-produced panels.
Do you expect the Trump administration to significantly reduce the scope of the IRA?
The Trump administration is likely to adjust the scope of the Inflation Reduction Act (IRA) to align with Republican priorities, but it’s unlikely to completely reduce its emphasis on domestic manufacturing and energy infrastructure development. National energy security will remain a priority, and this could influence continued support for clean energy initiatives, including solar power.
American leadership in solar technology will likely continue to play a key role. U.S. companies, like First Solar, are making significant investments in innovative solar technologies, particularly in thin-film photovoltaic modules. This focus on advancing solar technology provides the U.S. with a competitive edge, even as global competitors push for cost-cutting solutions. As solar systems evolve to integrate storage solutions and microgrid capabilities, American ingenuity may help offset price advantages from abroad.
Furthermore, in recent years, many traditionally conservative states have become leaders in solar and energy storage, fueling job creation and economic growth. For example, Texas installed 5.5 GW of solar capacity in the first half of 2024, nearly doubling Florida’s 2.9 GW. This surge in solar adoption emphasizes the growing role of renewable energy in national energy security, particularly in the face of extreme weather events that strain the power grid.
With the growing adoption of solar, SEIA has predicted 39,000 new manufacturing jobs by 2033 resulting from federal policies, with many of these jobs landing in red states. Solar and storage systems in these regions will be crucial to support the grid against climate-related disasters.
How might new tariffs impact the solar industry?
The solar industry has been navigating tariffs for over a decade. These measures are not exclusively a tactic employed by Republican lawmakers either. For example, in 2012, the Obama administration introduced tariffs of approximately 36% on Chinese solar manufacturers under anti-dumping and countervailing duty regulations.
While tariffs can incentivize domestic production, they also risk raising energy prices for consumers, particularly if applied widely. Empirical data shows that the burden of tariff-related price hikes often falls on consumers. As the cost of imported solar equipment increases, utilities — which are not designed to absorb higher costs — tend to pass these increases on to their customers, including residential, commercial and industrial users.
As retail energy prices climb, distributed solar energy systems become an increasingly valuable option. They provide an affordable and reliable alternative to conventional energy sources. Even with the challenges posed by tariffs, distributed solar remains a vital solution, reinforcing its role in advancing energy independence and lowering costs for consumers.
How do you see the role of battery storage evolving in 2025 and beyond? What are the key factors driving this transformation?
Battery storage will become increasingly vital in 2025 and beyond, with extreme weather events being a key factor driving this shift. Hurricane Helene exemplifies this, causing catastrophic flooding in North Carolina, resulting in power outages lasting over two weeks for some residents. However, Sunrock customers with rooftop solar and battery systems remained powered, demonstrating the resilience of localized energy solutions in protecting communities and stabilizing the power grid.
The need for grid resiliency is also transforming the financial return of batteries. Decentralized storage assets can now provide (and be paid for providing) essential grid services through virtual power plant (VPP) arrangements. By aggregating these assets into a unified resource, VPPs enable complex services like frequency regulation, peak load shaving, standby capacity, and electricity price arbitrage, benefiting asset owners and enhancing grid stability.
Advanced software controls are making VPP platforms even more effective by enabling real-time, dynamic management of energy storage systems based on real-time grid conditions, demand forecasts, and market prices. As a result, VPPs not only boost financial returns for asset owners but also enhance the reliability and stability of the grid, playing an increasingly vital role in the evolving energy landscape.
Are there any final thoughts you would like to share?
Uncertain energy policies, rising retail energy costs, and grid vulnerabilities are not just abstract challenges — these are issues impacting the local businesses and nonprofits that form the backbone of our communities. As the energy industry navigates policy shifts, an aging grid, and surging demand for power, clear opportunities are emerging in 2025 to redefine how energy is generated, stored and used — starting at the local level.
Resiliency must be built locally and distributed broadly. Whether it is a school reducing costs to invest in education or a local business reducing its carbon footprint while saving on costs, Sunrock and our partners are together bringing solar and storage solutions where they are needed most.
“Chang: The solar industry has advanced significantly since the last Trump administration, with distributed solar now the most cost-effective energy source in many parts of the U.S. Despite potential policy shifts, the sector’s fundamentals remain strong: Efficiency is rising, costs are falling and retail energy prices continue to climb.”
I would submit it has more to do with IOU electric utilities that are allowed assured returns and the ability to file and often get electricity rate increases due to “lost revenues” or “stranded assets”. This has been “baked in” as part of the electric utility industry and has less to do with who’s in the White House. Even then Trump can go on an Executive Order signing spree and it will run into Jurisprudence sooner or later. This process may end up ‘gagging the EO’ until Trump is out of office, as this document quietly fades away. It is best NOT to jump on the conjecture train and at least wait for the first 100 days of Trump’s administration, before prognostications are tossed about. This time around it fleshes out as April 29, 2025.
As such in some enclaves like California with (average) bundled retail energy costs from $0.20/kWh up to $0.32/kWh and a peak rate of $0.53/kWh during TOU rate spiking periods usually from 4 PM to 9 PM each day. A smart BESS such as the GENERAC PWRCell or Sonnen series of ESS units could be more effective than solar PV and BESS up front, (if) one can, go with solar PV AND smart BESS as the system installation up front. In California that may look like BESS operations of using off peak energy from midnight to 6:00 AM to charge the BESS battery then use this energy from 4 PM to 9 PM each day to ride through the TOU rate period.