Today, on Independence Day, we celebrate the founding of a nation built on freedom, resilience, and opportunity. These principles have driven America’s progress in every field, including our pursuit of energy independence. Ironically, today also brings a major change to national energy policy. The President signed legislation that abruptly eliminates the Section 25D federal tax credit for residential solar, effective at the end of this year.
The Role of Tax Credits in Solar Industry Growth
To be clear, most of us in the solar industry always understood that tax credits were temporary. They helped launch an industry that is now mainstream, reliable, and increasingly driven by American workers and American manufacturing. The market has matured. Domestic factories for solar panels, batteries, and inverters have reopened or expanded, creating jobs and bringing investment home.
The Impact of Abrupt Policy Changes
The problem is not that the credit is ending. It is how abruptly this change was made. Small businesses, contractors, and manufacturers planned for a gradual phase-out that was already written into law. They made decisions based on that timeline. They invested in equipment, facilities, and people. Now, with less than six months to adjust, the industry faces a cliff.
What happens in January 2026? The answer is simple and unavoidable. There will be far fewer jobs in residential solar. Workers will be laid off. Recent graduates of solar trade programs will find there are no jobs waiting for them. The market will contract sharply, not because of lack of demand for clean energy, but because homeowners will be highly hesitant without the support that was promised. Manufacturers and contractors alike will face the consequences of a market that was destabilized overnight.
A Better Path Forward for Solar Policy
This did not have to happen. A thoughtful transition, such as stepping down the credit to 20 percent next year, then 10 percent the following year, and then zero, could have supported businesses, workers, and homeowners alike. It could have preserved jobs and protected the domestic manufacturing resurgence we have all worked so hard to achieve. It would have given the market time to stand fully on its own, as it was already well on its way to doing.
The Solar Industry Will Adapt
That said, our industry will adapt. We always do. At our company, we have already been broadening our product offerings and focusing on markets and clients who are less sensitive to tax credits. We remain committed to providing high-quality energy solutions, no matter the policy environment.
The Importance of Predictable Energy Policy
Reasonable people can disagree on the role of tax credits. Supporters of this bill see it as a step toward a more self-sufficient market. Others see it as an unnecessary shock to an industry that was already moving in that direction. Both views deserve respect. What is hard to argue with is the value of a sensible, predictable policy that gives businesses and workers a fair chance to plan for change.
On this Independence Day, let us remember that true independence comes not from sudden shifts, but from steady, thoughtful progress. Our hope is that future decisions reflect that spirit, so all Americans have the opportunity to succeed in building the nation’s energy future.
