Is the GOP About to Kill Rooftop Solar?

Why Rooftop Solar Could Crash Under the Republican Tax-Cut Bill - The New York Times

Article Heading: Dark Clouds Gather Over Rooftop Solar: Republican Tax-Cut Bill Threatens Industry Boom

For the past two decades, a silent revolution has been unfolding on rooftops across America. From the sunny shores of California to the pine-studded landscapes of Maine, over 5 million U.S. households have embraced the power of the sun, installing solar panels to generate clean energy and slash their electricity bills.

However, this remarkable growth story might be on the verge of a dramatic reversal. A domestic policy bill recently passed by House Republicans is casting a long shadow over the future of rooftop solar.

The crux of the issue? The bill proposes to eliminate the very tax credits that have been instrumental in driving the popularity of rooftop solar. These credits, available to both homeowners and solar leasing companies, have made solar energy an increasingly affordable and attractive option for millions.

If this bill becomes law, the impact could be immediate and devastating. Industry experts predict a sharp decline in solar installations. According to Ben Airth, policy director for Freedom Forever, a leading residential solar installer: "This sets us back. I've been in this industry 22 years and remember when it was only rich people, doomsday preppers and environmentalists installing solar panels on their roofs."

Here's a breakdown of what's at stake:

  • Elimination of Tax Credits: The bill aims to scrap the tax credits for homeowners and solar leasing companies by the end of this year.
  • Plunging Installations: Analysts and companies anticipate a significant drop in the number of new solar installations.
  • Extended Payback Period: Without the tax credits, it would take homeowners considerably longer to recoup their solar investments.

The numbers paint a concerning picture. Ohm Analytics, an energy data firm, estimates that residential solar installations could plummet by half next year if the House bill is enacted. Their analysis suggests that, absent the tax incentives, homeowners would need an average of 17 years to earn back their solar investments.

Adding to the gloom, a more pessimistic projection from Morgan Stanley forecasts a staggering 85 percent decline in rooftop solar demand through 2030.

Key Takeaways:

  1. The Republican tax-cut bill poses a significant threat to the rooftop solar industry.
  2. Eliminating tax credits could drastically reduce the number of new solar installations.
  3. Homeowners would face longer payback periods, making solar less financially attractive.
  4. The potential economic and environmental consequences are substantial.

The future of rooftop solar hangs in the balance. As the bill moves through the legislative process, the stakes are high for homeowners, solar companies, and the nation's clean energy goals. The decisions made in the coming months will determine whether the solar revolution continues to flourish or fades into the shadows.

Source: https://www.nytimes.com/2025/06/11/climate/rooftop-solar-republicans-congress.html

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