Editor’s note: Today, CNHI and the Record-Eagle continue “The Great Green Debate” series on green energy in the United States. This news coverage – with stories today and in our weekend edition, with more to come in December – reports on the global shift to renewable energy and America’s growing need, how green energy works, the ongoing conflict surrounding land development for projects and the loss of green space, as well as how we can use less energy, regardless how it’s supplied.
The United States is witnessing a significant increase in solar power installations, driven by decreasing costs and the expansion of large commercial projects. However, the future of the solar industry remains uncertain as federal subsidies that have supported its growth are being eliminated under the Trump administration.
In 2022, renewable sources contributed to over 90% of the new U.S. electrical generating capacity, with solar energy accounting for more than 81% of this surge, according to the U.S. Department of Energy.
Current solar installations across the country can power over 40 million homes, with utility-scale solar providing 71% of this capacity, notes the Solar Energy Industries Association (SEIA). A typical 100 megawatt solar project can supply energy to approximately 17,200 average U.S. homes.
“This growth is a testament to the power of American innovation,” said Abigail Ross Hopper, SEIA’s president and CEO. “We’re building factories, hiring American workers and showing that solar energy means made-in-America energy.”
Municipal utilities in Michigan, like Traverse City Light & Power, are part of this solar expansion. The city-owned utility has invested in a 6.6-megawatt share of the White Tail Solar array in Washtenaw County as part of a 20-year agreement. This is part of a larger 140-megawatt project with other members like the Lansing Board of Water and Light also participating.
TCL&P also committed to two solar power purchases in 2021, totaling 20 megawatts from projects near Hart and in Calhoun County.
The Trump administration’s decision to eliminate federal subsidies for solar and other renewable energy projects poses a significant challenge to the industry’s growth, Hopper noted.
The administration’s stance risks “driving investment overseas, stifling job creation,” and “raising costs on consumers,” while potentially ceding America’s manufacturing advantage to international competitors, she added.
How it works
Solar power, developed initially in the late 1800s, functions by transforming sunlight into electricity and heat. Solar panels, made from silicon and encased in metal and glass, release electrons when exposed to sunlight, generating an electric charge. This energy is then converted for use in homes, businesses, or the electric grid.
The rapid adoption of solar technology, both in large-scale farms and rooftop installations, can be attributed to declining costs. China, a major solar producer, has been instrumental in reducing panel costs by nearly 90% in the past decade, according to analysts.
Globally, solar capacity is expected to double by 2030, with countries like China and India leading through large-scale projects and innovative financing. Major corporations, including Amazon and Tesla, are also investing heavily in solar to lower costs and reduce carbon footprints. Amazon alone has over 600 renewable projects in progress.
Administrative priorities
The solar industry’s progress faces obstacles as the Trump administration and congressional Republicans reduce clean energy tax credits and impose barriers to renewable projects, risking the U.S. lagging behind in the global renewable shift.
Trump’s administration has halted major renewable energy projects since January, with Interior Secretary Doug Burgum implementing restrictions on wind and solar development. This includes requiring personal approval for each project on federal lands.
Burgum stated, “Based on common sense, arithmetic and physics, wind and solar projects are highly inefficient uses of federal lands,” advocating for “clean” coal and natural gas as more viable alternatives.
The Big Beautiful Bill Act, signed by Trump in July, accelerates oil and gas lease sales, hastens environmental reviews, and opens public lands for coal leasing while ending solar incentives, including a significant tax credit for rooftop solar installations.
Companies are rushing to complete solar projects to qualify for tax credits before they expire or become less accessible. Projects must begin by July to retain eligibility for credits Congress plans to phase out earlier than planned.
In August, the U.S. Environmental Protection Agency canceled the $7 billion Solar for All program, part of the Biden administration’s Inflation Reduction Act aimed at expanding solar access to low-income households. EPA Administrator Lee Zeldin criticized it as a “boondoggle” with misuse of funds, prompting legal challenges from states and the solar industry.
Groundswell, a nonprofit in Southern states, expected $156 million from the program. It has initiated solar projects benefiting low-income households but now faces financial uncertainty.
‘No going back’
Despite administrative setbacks, environmental advocates argue that solar energy remains economically viable and essential for reducing greenhouse gas emissions linked to climate change, severe weather, and rising sea levels.
“Globally, there is no going back on this,” said Kate Sinding Daly of the Conservation Law Foundation. “Wind and solar are the future of renewable energy. The momentum may be slowed in this country, but it’s not going to be reversed.”
John Taylor, TCL&P board chairman, believes clean energy, including solar, will continue to advance, even as tax credits for utility-scale projects become harder to claim. Opportunities exist for large and small utilities alike.
“I think the consequences of this most likely is it’s going to cost more, and that’s almost always going to be reflected in the rate that customers pay,” he said.
Critics argue that the push for renewable energy could increase consumer costs and strain the electric grid. Lisa Linowes, an energy policy analyst, claims that states promoting green energy policies are causing higher costs and grid pressure.
“The public is largely in the dark about what’s happening with renewable energy,” she said. “The states and environmentalists who are pushing for a net-zero environment are telling everyone that wind and solar are the cheapest forms of electricity. But the reality is it’s cost-prohibitive, and we just don’t have the land for it.”
Net-metering programs, which allow consumers with rooftop solar to pay lower electricity rates for contributing to the grid, are seen as benefiting those who can afford solar installations, with costs passed to other ratepayers.
Linowes points out that these programs increase utility bills in regions with already high energy costs, like the northeast.
“Net-metering is one of the largest portions of a utility bill in Massachusetts and other states with these programs,” Linowes said. “These policies are hurting energy consumers.”
A report by conservative groups estimated that New England states’ decarbonization plans could cost $815 billion by 2050, with households paying nearly $100 more annually for electricity. Commercial and industrial costs would also rise significantly.
Paul Craney of the Fiscal Alliance advocates for expanding access to natural gas and other affordable energy sources instead of investing in costly alternative energy programs.
Taylor acknowledges solar’s limitations but highlights the potential of battery storage to stabilize power production. Although expensive, advancements are reducing costs.
“There’s a reason for optimism about clean energy continuing,” he said. “I say that with a lot of confidence. I think it’ll continue to be a major growing element of our portfolio for generation.”
Coming this weekend HOW CLEAN IS GREEN? Despite advances, technology still produces CO2, health risks. See this weekend’s edition of the Traverse City Record-Eagle for the next in our series of “The Great Green Debate.”
Original Story at www.cnhinews.com