The landscape of solar energy in the United States is transforming rapidly as plummeting costs fuel a surge in solar installations. However, recent policy shifts are casting uncertainty over the industry’s future.
Solar energy is at the forefront of new power capacity in the U.S., with renewable sources making up over 90% of new additions last year. Solar alone contributed 81%, marking the most significant rise from any energy source in two decades, as reported by the U.S. Department of Energy.
Currently, solar installations in the U.S. power more than 40 million homes, with utility-scale solar projects accounting for 71% of that capacity, according to the Solar Energy Industries Association (SEIA). A standard 100 megawatt solar installation can supply electricity to 17,200 average homes in the U.S.
“This growth is a testament to the power of American innovation,” stated Abigail Ross Hopper, SEIA’s president and CEO. She emphasized the industry’s contribution to American jobs and manufacturing, but also expressed concerns about the Trump administration’s decision to cut federal subsidies for solar projects.
The administration’s stance on solar energy, Hopper warned, could drive investments overseas, impact job creation, and increase consumer costs. “This industry has proven what’s possible when businesses have the certainty to invest,” she added.
Understanding Solar Energy
Solar power, in use since the late 1800s, operates by converting sunlight into electricity and heat. Solar panels, typically made with silicon, generate an electric charge when exposed to sunlight, which can then be used to power homes and businesses.
The rapid spread of solar technology, both on large-scale farms and residential rooftops, has been largely driven by decreasing costs. Analysts highlight China’s role in reducing panel prices by almost 90% over the last decade. By 2030, global solar capacity is expected to double, led by countries like China and India through large projects and innovative financing.
Major companies, including Amazon, Tesla, and Target, are investing heavily in solar to cut operational costs and reduce their carbon footprints. Amazon, for example, is the largest corporate purchaser of renewable energy worldwide, with over 600 solar and wind projects in the U.S.
Policy Challenges and Industry Response
Despite the economic benefits, the solar sector faces challenges from the Trump administration, which has rolled back clean energy incentives and imposed obstacles on renewable projects. Interior Secretary Doug Burgum has issued orders to limit solar and wind developments on federal lands, citing inefficiencies compared to other energy sources like coal and natural gas.
Furthermore, the “Big Beautiful Bill” Act, signed in July, prioritizes fossil fuel development and ends incentives for solar installations, impacting homeowners and businesses alike. The urgency to begin solar projects before tax credits expire has companies racing against time.
In August, the U.S. Environmental Protection Agency halted the $7 billion Solar for All program aimed at expanding solar access to low-income households, leading to lawsuits from states and the solar industry.
Debate on Solar Economics
Environmentalists argue that solar energy remains economically viable and essential for reducing greenhouse gas emissions. However, critics highlight concerns over rising costs and grid reliability. States like California are pushing for renewable policies that some say increase consumer costs and strain the electricity grid.
Net-metering programs, which allow solar-equipped homeowners to sell excess power back to the grid, are criticized for benefiting only those who can afford solar installations. Critics argue these policies add to utility bills, particularly in regions with high energy costs.
A recent report by conservative groups suggests that decarbonization plans in New England could cost $815 billion by 2050, raising household and business electricity expenses. The report recommends expanding natural gas access instead of relying on costly renewable subsidies.
Paul Craney of the Fiscal Alliance highlights the need for practical energy policies that lower costs across the board, rather than focusing on rebates and subsidies for alternative energy.
The Great Green Debate
This article is part of an ongoing series exploring green energy developments in the U.S., examining global shifts in energy sources, and the economic and environmental impacts. Future installments will address land use conflicts and strategies for reducing energy consumption.
Original Story at www.cnhinews.com