The U.S. Senate unveiled its updates to the reconciliation bill late Friday night, and in many aspects it was worse for the solar industry than before. The Senate should begin voting on the bill today, and then everyone can better understand the damage.
“This reconciliation bill proposal isn’t just misguided — it’s a direct attack on American energy, American workers, and American consumers. It guts the very industries that are lowering electricity bills, revitalizing U.S. manufacturing, and building more new power capacity than every other energy technology combined,” stated Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA). “Make no mistake: if this bill passes, Americans will pay the price — literally. Power bills will rise. Factory jobs will vanish. Families will be forced to spend more just to keep the lights on and their homes cool. All while we become more dependent on foreign energy and more vulnerable to blackouts. Any Senator who votes for this bill is voting for higher energy prices, a weaker economy, and a less secure America. And they’ll have to answer for it when families open their utility bills, when workers lose their paychecks, and when voters head to the polls.”
- For the utility-scale ITC (48E) and PTC (45Y), the Senate changed language so projects would have to be placed into service by year-end 2027 to get any incentive amount. The original Senate bill draft allowed for 100% credit amount as long as construction started by the end of 2025.
- Homeowner/residential ITC (25D) is still written to expire at year-end 2025. But the denial of residential leasing companies from receiving the ITC appears to be removed.
- A new tax is invented, after the utility-scale ITC/PTC expires. Any project that starts construction before 2035 would have to abide by the “foreign entity of concern” (FEOC) clause or be subject to a 50% tax. In basic terms: If a project uses any component that has any association with China, it would pay a 50% tax.
- The storage ITC is still exempt from the accelerated phasedown and is intact through 2033.
- The manufacturing tax credit (45X) is still preserved and stackability appears to be restored (meaning a solar wafer-cell-panel manufacturer can get credits for all three components).
“With no warning, the Senate has proposed new language that would increase taxes on domestic energy production,” said American Clean Power Association (ACP) CEO Jason Grumet. “These new taxes will strand hundreds of billions of dollars in current investments, threaten energy security, undermine growth in domestic manufacturing and land hardest on rural communities who would have been the greatest beneficiaries of clean energy investment.”
Solar Power World will review the latest updates to the bill as voting happens and report on the final outcome.
What if we pair BESS with Solar and claim ITC similar to roof projects?
Keep in mind we are throwing nearly a trillion dollars, yes that’s trillion with a T, to the military in a country bounded by two oceans, Canada & Mexico. At the same time, we disenvest in a primary technology of the future. How short-sighted.
Let’s not pretend like there isn’t a return on investment for securing open navigation of the seas *worldwide*. Among many other securities that the US military provides.
What about the credits for Residential Storage? Expiring after 2025 or in 2033?
” Any Senator who votes for this bill is voting for higher energy prices, a weaker economy, and a less secure America.”
I submit, SEIA drama, it is established that about 60% of all electric utilities in the U.S. and are IOU electric utilities. As such the decades old “regulated monopolies” have some “assurances” baked in. IF the utility constructs more infrastructure it is “entitled” to an average return on investment of 8% to12%. IF folks get more energy efficient the utility files a rate case with the AHJ PUC, SCC for an electricity rate increase due to “lost revenues”. When a utility decommissions an old plant, it gets a rate increase to cover “stranded assets”. Prices going down, not likely any time soon.
Actually she’s not wrong. Look at studies that have been completed. In Texas alone, they are saying that because of the utility solar and batteries that were installed between 2018-2024, it lowered energy cost for Texan’s by 40%.
The cost to construct natural gas power plants has also increased by 60%
I’m seeing a 14% increase over 5 years for Texas.
https://www.uschamber.com/energy/pipeline-bottlenecks-increasing-demand-driving-up-electricity-prices?state=tx
Where are you getting a 40% decerease?
TS, I see what you’re saying and the link seems to project less than 3% electricity rate increase per year on average. Yet, Texas is an “islanded” grid infrastructure case, where many Energy entities are under the Umbrella of ERCOT. One might find some more clarity in future electric rate increases by looking at each Energy entity under ERCOT, what it is they project in their 10 year IRP filings. It seems there is a guidance document in [PUBLIC UTILITY COMMISSION OF TEXAS, CHAPTER 25]. Some “other” States utilities have filed IRPs that are projecting from 4.5% to 6.5% rate increases YoY until at least 2035. The narrative seems to be turning towards future Data Centers with Server Farms that may require one number already thrown out as 612 terrawatts/year or baseload of 69-70GWh continuous country wide, right about 2035. Baseload generation, transmission lines upgrades and construction, interconnects between transmission infrastructure is on its way to fulfilling the prophecy of 4.5-6.5% bundled electricity rate increases YoY as the probable new normal. Add another 22-23 GWh of baseload to offset transportation shifting from fuel to electric and one needs baseload about 93GWh of generation across the U.S.. The GE-Hitachi BWR-300 micro reactor would require 310 of these SMR units across the U.S.. With massive distributed energy storage facilities that would flesh out to about 233GWh of energy storage across the U.S. or 25% of demand as energy storage.
I see only 4 states that have reduced their cost of energy (in terms of price per kilowatt hour)
North Dakota : 5.55% decrease over 3 years, 11.89% over 5 years
Nebraska : 0.22% decrease over 5 years
Louisiana : 1.59% decrease over 3 years
New Mexico : 5.49% decrease over 3 years
https://www.uschamber.com/energy/pipeline-bottlenecks-increasing-demand-driving-up-electricity-prices?state=me
Can solar be directly cited as the reason for those electricity price decreases as the SEIA president is claiming?