Clean Energy Associates forecasts a significant drop in solar installations if the Department of Treasury strictly enforces an executive order from the White House related to timelines for tax credit eligibility.
The grant funds are disbursed to state programs that provide solar energy access to low- and moderate-income families.
Solar developers prioritize advanced-stage projects in the U.S. due to tightened tax credit deadlines, while projects in Canada are “full speed forward.”
Foreign entity of concern (FEOC) rules deny tax credits for projects that exceed using certain thresholds of Chinese products.
The order tightens the deadline for project tax credit eligibility and orders the Treasury to apply enhanced Foreign Entity of Concern restrictions to imports.
A wave of solar projects and manufacturing investments have poured across states that voted for Trump last November.
The budget cancels funds for renewable energy, carbon capture, EV programs and more.
The Trump administration’s China tariffs have piled atop existing and developing trade barriers on battery energy storage systems, components, and materials – destabilizing the U.S. energy storage industry. While existing inventories will allow project development to move forward in the short term, uncertainty extends across the supply chain, including to prospective manufacturers.
The executive order calls for expedited permitting along with funding and loans for mining projects that could serve the domestic manufacturing of energy storage, electric vehicle batteries, solar modules and more.
President Biden invoked the law to increase domestic solar manufacturing and support energy efficiency buildout.
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