Solar Setback: GOP Bill Threatens Booming Rooftop Industry
A Republican budget bill, passing through Congress, threatens the U.S. solar industry by eliminating a significant subsidy. The removal of a 30% federal credit could stifle industry growth, affecting over 100,000 jobs. Despite assurances, the industry's stability is at risk with this abrupt legislative change.
In a critical blow to the U.S. solar industry, a Republican-backed budget bill in Congress this week is poised to abolish a crucial subsidy for homeowners installing solar panels. The proposed legislation would terminate a 30% federal tax credit for rooftop systems, an incentive that has significantly fueled the sector's expansion over the last decade.
Industry insiders, like Charlie Hadlow of EnergySage, warn of dire consequences, including financial instability for many solar companies. The unexpected legislative move comes amidst Republican efforts to roll back initiatives introduced by the Biden administration to promote clean energy and reduce climate change impacts.
With the bill facing several legislative hurdles, the solar sector remains on edge. Businesses fear a potential setback could lead to job losses and increased costs for consumers, with small installers especially vulnerable. Advocates urge maintaining the current tax credits to support local economic growth and sustain employment levels.
(With inputs from agencies.)
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