How the boom of clean energy in the US can

Solar Energy Executive Directors believed that the billions of dollars they had invested in the Republican congresses would eventually Close their industry From the threats of President Donald Trump to end federal support for renewable energy.

But they may have been catastrophically wrong. The tax account that the house republicans passed this week is a “worst than the feared scenario” for the solar energy, Jefferi Investment Bank analysts told customers in a note.

Legislation will end key tax loans that support the growth of industry, causing a broad sales of solar stocks Thursday. The bill still has to cross the Senate, where Jefferis expects “non -working” regulations to be annulled.

But in its current form, the tax bill effectively takes “Sledgehammer” of President Joe Biden’s Inflation Act, Jeffer analysts said. The legislation would “will” increase the economic boom in that country that has provided a historical Renaissance“said Abigail Ross Hopper, CEO of the lobbying group The Sun Energy Industry AssociationS

Hopper exploded the tax account as a “deliberate ignorance” of the role that solar energy and battery storage play while satisfying the demand for electricity by consumers and businesses of the United States.

“If this bill becomes a law, America will effectively hand over the AI ​​race in China and communities across the country will face eclipses,” she warned.

Sunrun Executive Director Mary Powell told CNBC in an interview on Thursday that legislation could lead to a loss of 250,000 jobs and would increase electricity costs for consumers. The solar roof installer had the biggest idea on Thursday, with the shares dropping by 37%.

Trump, for his part, called on the Senate to convey what he calls “one, a big, beautiful bill” as soon as possible. “There is no time to waste,” said the president of his social media platform True social Thursday.

Companies have invested over $ 161 billion in large sunshine and battery storage projects after the transition in 2022, according to The The Massachusetts Institute of Technology and the Rodium GroupS

Sunny energy and battery storage is the fastest growing source of energy in the United States, representing 81% of the expected network power supplements in 2025, according to Administration of energy informationS

But the tax bill would kill the two tax credits that they made most to allow the jump of solar energy. It terminates loans for the production of investment and electricity for clean energy facilities that start construction 60 days Once the legislation has entered into force or go to service after 2028. This also applies to wind energy that grows in a more slow place in the US

“This will put a huge delay in the amount of clean energy that is added to the net,” says Ben Smith, an associate director of Rhodium Group’s energy and climatic practice. The deployment of clean energy on the network can decrease by 57% to 72% over the next decade, According to RodiumS

Clean energy projects also cannot claim tax loans next year if they receive “material assistance” from prohibited foreign enterprises. This is the most aimed at projects that drain basic materials from China, such as solar panels or cobalt and battery lithium, King said.

“It really serves in our assessment as a de facto cancellation of the loan next year,” he said. The production tax credit that supports companies such as First solar energy It remains in place until 2031, although it is subject to restrictions on foreign entity.

The tax bill is “catastrophic” for the solar industry on the roof, Guggenheim analyst Joseph Osha told customers. It terminates tax loans to companies such as Sunrun, which hire solar equipment for customers. About 70% of the housing solar industry uses leasing arrangements, Osha said.

“I would expect this to change,” Capito told Politico On May 13. “There is job creation around these tax loans.”

In fact, the GOP congress areas will be affected if the loans are terminated. About 81% of IRA investment has gone to Republican regions, according to Advocacy Group E2.

Delayed solar implementation will come at the same time when the demand for electricity increases due to the construction of data centers for artificial intelligence, re -industrialization and wider electrification of the economy.

Renewable energy sources can be expanded the fastest to respond to demand at the moment, as solar energy, battery storage and wind represent 92% of the electricity projects waiting for the network, according to the network, according to the network Interconnection.fyian organization that tracks contact requests.

Natural gas demand is also rising in the United States, but the time to wait for new turbines is five to six years, if it is now being placed, Reed Ramdidsing, an analyst at the consulting firm Rystad Energy. Although growth can slow down, solar energy and batteries will continue to unfold, as there is really no alternative, Ramdatsing said.

“The demand is there for energy,” he said. “Gas is not able to respond to this short -term demand. The biggest alternative to this gas generation from which we will need in the next few years is renewable energy sources.”