With President-elect Donald Trump poised to enter the White House, uncertainty over the future of renewable energy incentives has sent installations of solar panels soaring across the United States. Homeowners are racing to exploit a 30% federal tax credit for solar projects that many fear may soon disappear under the new administration.
The solar industry, responsible for more than half of the new electricity on the grid added in 2024, is preparing for possible policy shifts. Trump has campaigned on increasing fossil fuel production and clawing back money promised under President Biden’s climate-themed Inflation Reduction Act. And those positions have led many to question how much longer incentives for renewable energy-such as the solar tax credit-will survive.
Homeowners Seek Certainty
Jorge Solares of the Boston area installed solar panels recently, driven both by environmental and financial motivations.
“We have a new baby, and we’re hoping this investment will pay off in a few years,” he said. “But after Trump’s election, we rushed to get the panels operational before year-end.”
That 30% tax credit sliced about $8,000 off the cost for Solares, an otherwise prohibitively expensive project. But for others, like Jeff Beardsley in Florida, uncertainty was enough to give solar a pass. Fearing he’d miss out on federal incentives, Beardsley opted for a gas generator instead of solar panels.
Installers Gird for Policy Changes
For solar companies, the uncertainty is impacting business strategies. Doug Edwards, president of Exact Solar in Pennsylvania, has stocked his warehouse with panels to lock in prices ahead of potential tariff increases.
“We’re packed to the gills here,” Edwards said, pointing to pallets of solar panels. Trump’s campaign promises included imposing tariffs of up to 20% on imported goods, a move that could significantly raise costs for the industry.
These potential tariffs come as solar companies are expanding. Exact Solar has nearly tripled in size in recent years hiring locally. But Edwards worries incentive cuts or tariff hikes could slow growth and threaten jobs.
Industry Pushes for Bipartisan Support
The main trade group of the industry-the Solar Energy Industries Association-has since echoed some of that “energy dominance” rhetoric from Trump in its policy agenda, in the hopes of aligning the industry with priorities the administration has identified as favorable, focusing on the jobs created by the sector.
“Solar is not just a Democratic issue. It’s an American issue,” said Stephen Irvin of Amicus Solar Cooperative. “Our companies operate across red and blue districts alike.”
Future of Solar
Yet despite such uncertainties, solar advocates remain cautiously optimistic. For one thing, the rapid growth – and potential job creation – may prove too much for policymakers to ignore.
Still, with Trump’s inauguration just days away, many are racing to complete projects while current incentives remain in place. The nation will be watching to see just how the administration’s energy policies shake out, but one thing is already clear: for many Americans, the race to go solar is well underway.
