The Economic Fallout of America’s Solar Setback & the Need for States to Lead

At a time when countries around the world are sprinting toward clean energy innovation, the U.S. is hitting the brakes.

While Europe, China, and even emerging economies are doubling down on solar, wind, and storage, Congress has passed legislation that gutted one of America’s most successful climate and economic tools: the 30% federal solar tax credit for households.

It’s more than a policy rollback—it’s a strategic blunder with global consequences. And make no mistake: the economic fallout won’t be limited to Capitol Hill. From solar workers and installers to the family down the street trying to cut their energy bills, the impact will be immediate and personal.

This is happening at a moment when the global energy economy is being redefined. Nations are investing boldly in clean technologies—not just for the climate, but for competitiveness, security, and resilience.

China is projected to install more solar in a single year than the U.S. has in total to date.
The EU is scaling rooftop solar and storage as a hedge against fossil fuel volatility.
Even oil-rich Persian Gulf states are accelerating solar buildouts to future-proof their economies.

Meanwhile, the U.S.—with all its potential—is considering removing support from families, workers, and small businesses driving clean energy growth from the ground up.

By putting federal barriers in place that delay solar adoption, we’re not saving money—we’re driving up costs here at home, while falling behind in the global race for clean energy jobs, innovation, and resilience.

The administration talks a big game about energy dominance, but this bill keeps us locked into an outdated system—while other countries reap the economic benefits of moving forward.

There Is No Practical Alternative

With surging demand from AI, data centers, electric vehicles, and building electrification, we simply can’t afford to slow down. There is no practical near-term solution other than solar and wind to meet growing electricity needs.

And over time, there is no affordable or scalable path to modernize the grid and power a thriving economy that doesn’t center solar and storage—particularly local systems that use private investment and offer the flexibility our grid urgently needs.

The Economic Fallout Is Already Clear

According to the Solar Energy Industries Association (SEIA), if this legislation moves forward, it could eliminate nearly 150,000 jobs across the U.S. solar industry over the next decade.

The damage won’t be spread evenly—it will hit small, local solar businesses and rural communities the hardest:

Over 30,000 residential solar jobs lost by next year alone.
$4.9 billion in residential solar investment wiped out.
Nearly 20 gigawatts of solar capacity is at risk—enough to power millions of homes.

A report from Energy Innovation calculates the economic impact to the broader economy, and the findings are staggering.

Power generation capacity will fall 340 gigawatts by 2035, raising costs to meet growing demand and damaging industrial competitiveness
Wholesale electricity prices will increase 25 percent by 2030 and 74 percent by 2035; electricity rates paid by consumers will increase between 9-18 percent by 2035
Household energy costs will increase $170 annually by 2035
America loses $980 billion in cumulative GDP through the budget reconciliation window
Workers suffer 760,000 lost jobs by 2030

This isn’t just bad news for climate progress—it’s an economic gut punch to the tradespeople, electricians, roofers, and customer service workers who’ve built careers in one of the fastest-growing sectors of the U.S. economy, with ripple effects that will impact the entire economy.

From D.C. to Your Driveway: The Domino Effect of One Bad Bill

What happens in Washington doesn’t stay in Washington. The consequences of this bill will ripple all the way to your neighborhood.

Families will face rising energy bills with fewer options to control them.
Small businesses that install solar panels and storage will shrink or shutter.
Local communities that rely on clean energy investments will lose jobs, tax revenue, and resilience.

It’s not just about one bill—it’s about whether we’re serious about building an economy that’s clean, affordable, and prepared for the future.

This Is Avoidable

The solar tax credit helped launch a rooftop revolution—making clean energy attainable for millions of households. Rolling it back now is going to undermine not only climate goals, but also job creation, private investment, and American competitiveness.

We had the momentum. We had the workforce. We had the support.

Now the federal government is walking away from all of it—leaving families with fewer choices, workers without jobs, and a country that could have led the clean energy future, falling further behind.

Let’s not pretend this is fiscal responsibility. It’s economic sabotage, and it’s happening in plain sight.