A West Virginia residential solar installation by Solar Holler.
In the hills of West Virginia, families are finally starting to see real relief from high energy bills — thanks to programs that make solar energy accessible and affordable. But now, Congress is threatening to roll back the very policies that have made that progress possible.
The Trump Administration has a stated goal of American Energy Dominance, but the House Reconciliation Bill’s severe cuts to the energy tax credits threatens to bring energy chaos instead.
The bill passed by the House will decimate the energy manufacturing boom, increase electricity costs for families and businesses and put the nation at risk of energy shortages as we try to keep up with rapidly growing energy demand. Senator Capito and Senator Justice should not let that happen and instead support common-sense approaches to the commercial and residential energy tax credits that are benefitting West Virginians.
In West Virginia, lower-income household energy burdens are among the highest in the country and many are struggling to afford increasing utility bills. According to the Clean Energy Buyers Association, the House Reconciliation Bill will increase electricity prices over the next decade. The electric utilities trade association, the Edison Electric Institute, has also stated that maintaining the energy tax credits will help lower utility bills by $45 billion through 2032.
As scary as those cost increases are, it may be far worse for West Virginia because those don’t account for the “dramatic increases in future energy demand” forecast by PJM, the region’s wholesale electricity market, due to data center development, new manufacturing and increasing use of electricity in transportation. That rising demand coupled with slower deployment of cost-effective new energy resources, which includes solar and energy storage, will increase utility rates across the region. It is simple supply and demand — if we don’t bring on enough energy resources then costs will go up and that will be a drag on West Virginia’s economy.
Solar Holler and PosiGen are utilizing the 48E and 25D energy credits to reduce energy costs for families across West Virginia. For example, Mary West, who lives just outside of Charleston, was able to install solar on her home through a lease structure that required no credit check, income requirement and will provide immediate savings on her bills. Removing the option for families to lease, which the House bill does, will simply put energy savings out of reach for those who need it the most. Mary’s story is powerful, but not unique. It represents thousands of households across West Virginia looking for stability in an unpredictable energy market.
We are also proud of the growth in American energy manufacturing across the country, including West Virginia, due to the energy tax credits. We use domestically-manufactured equipment in every installation and we continue to see more and more of the solar supply chain come to the US because of the policies that are in place to support onshoring. This is critical not just for the economic benefits, but also for our national security.
Our residential solar projects create demand for domestically-produced solar panels, inverters and racking, including from Georgia, Texas, Florida, South Carolina, Washington, New Mexico, Ohio and Arizona, which has led to the several hundred solar manufacturing facilities that are under development or are operating today. A sudden reversal of long-term energy policies will create a policy whiplash that puts those manufacturing facilities and jobs at risk.
Businesses are investing in projects and factories across the country, many of which would be negatively impacted by the near immediate elimination of the energy tax credits. Congress should not punish businesses by pulling the rug on those investments. The economic impact is real and being felt in West Virginia with each family that we serve.
At a time when we need all energy sources to meet rising energy demand and to keep energy affordable, our Senators should take a holistic approach to Energy Dominance that includes a reasonable approach to the 25D and 48E credits that directly benefit West Virginians.
“The Trump Administration has a stated goal of American Energy Dominance, but the House Reconciliation Bill’s severe cuts to the energy tax credits threatens to bring energy chaos instead.”
Comes down paying it forward in personal energy use each day to an expectation of a national energy policy bandwagon to jump on. I’ve been personal energy use defined since 2005 and my first solar PV installed on a home with a lousy Federal ‘incentive’ capped at $2K, but at that time the political narrative was subsidized solar PV installation through a sliding scale “capped” solar PV fund through the local utility. That system is still on the roof of that home and providing power some 20 years later.
The home I’m in now also has solar PV, twice the output of the old system on the old home. Since I was in the middle of selling the Primary residence while buying the Secondary residence, I did not qualify for the ITC. Even at that I had solar PV grid tied installed in 2017 with NO subsidies and it was right at $3.50/watt installed.
The original system installed on a home in 2005 had a “simple ROI” of 22 years payoff. The actual experience was with local utility rate increases, it took 13-14 years to pay for the system in energy savings costs. The system on this home is something on the order of double the power generation capability than the old system and the initial ROI was 11-12 years, a recent utility rate case will bump up bundled costs of residential electricity and bring that ROI down to something like 9-10 years for system payoff in energy savings. The reality of solar PV use on one’s home or small business is it is a marathon, not a sprint. Half truths need to be addressed a little more intensly moving forward. Yeah, solar PV panels degrade in use, they are also less effected by LeTID today than they were 20 years ago. When one replaces old appliances with Energy Star appliances, you get back some energy savings that offsets the panel degradation and increases one’s daily energy credits with the utility. Solar PV and smart BESS as a comprehensive system for energy storage, self consumption and resiliency is becoming common place as a home system.
It was well known prior to the election that GOP House members from West Virginia were aligned with Trump and would do as told. Couple that with Trump’s well known demonization of energy. I only have won question for the two of you.
Who did you vote for?
If it was Trump and the current WV GOP House members, then you voted against your own self interest and those of your employees.
Votes matter!
Votes do matter, and it’s not just a party difference. What has been happening and continues to happen in California is a prime example that it goes much deeper than any one political party.