US solar, energy storage industries demand Reconciliation Bill amendments

The “America’s solar industry is under threat” report published by the SEIA details what the trade body predicts will happen to the US solar and energy storage industries if President Trump’s wide-ranging “Reconciliation Bill” is passed without amendment.

The Reconciliation Bill presented by the US House Ways and Means Committee and advanced through the House Budget Committee could jeopardize nearly 300 US-based solar and energy storage factories and lead to the loss of 145,000 GWh of solar generation by 2030, according to the report.

Job creation has been strong since passage of the clean energy tax credits in 2022. By 2033, the SEIA expects the US solar manufacturing workforce to grow to 100,000, barring changes to tax credits. In the new report, the SEIA warns that if the bill is enacted as written, nearly 300,000 current and future jobs may be lost, including 86,000 in solar manufacturing.

Momentum

In 2017, at the start of President Trump’s first term in office, the United States ranked 14th in the world for solar manufacturing. Today it is the third largest solar manufacturing economy in the world. No longer reliant on solar modules from China and other nations, enough solar modules are now produced in the United States to serve the domestic market.

“There is still time to improve this bill which, as written, represents a crisis for America’s ability to build the energy infrastructure we need to meet surging demand,” said SEIA President and CEO Abigail Ross Hopper. “If this proposal becomes law, nearly 300 US factories – mostly in red [Republican] states – could close or never open, and we simply won’t have the energy we need to power American innovation in AI [artificial intelligence] and data centers.”

The SEIA estimates that, if enacted, the bill could trigger an immediate decline in solar and energy storage investment that could amount to $220 billion in investment by 2030.

Load growth

A recent study conducted by PA Consulting, for the National Electrical Manufacturers Association (NEMA), “A Reliable Grid for an Electric Future,” forecast a 300% rise in energy consumption by data centers alone.

An all-of-the above approach will be needed to add energy to the grid fast enough to meet demand. As shown in the chart below, solar and energy storage is the fastest energy to reach deployment.

If Congress cuts these incentives, the SEIA said energy production will fall 145 TWh and “America will not be able to meet demand, leading to blackouts and a surrender of the AI race.”

“Passing this bill would create a catastrophic energy shortfall, cede AI and tech leadership to China, and damage some of the most vital sectors of the US economy,” Hopper added. “But the story isn’t over. The Senate has the opportunity to put forward a more thoughtful and measured proposal that achieves President Trump’s American energy dominance vision.”

The SEIA is urging the industry to contact representatives to urge revisions to the legislation to protect jobs, keep manufacturing in America, and to promote the build out of solar and energy storage at a time when we need it most.

From pv magazine USA.