Sweeping Tax Bill Threatens US Solar Growth — When Power Needs Are Skyrocketing

As the U.S. Senate considers a sweeping tax package passed in late May by the House of Representatives, the U.S. solar industry is sounding the alarm over provisions that could severely undermine the industry's rapid growth, at a time when both power demand and power prices are skyrocketing.

At Altus Power, we welcome the opportunity to work with lawmakers to ensure that legislation is effective for all constituents. However, the proposed legislation would likely stall development across the country by abruptly eliminating critical tax incentives, imposing near-immediate construction deadlines and enforcing domestic content rules that the current U.S. supply chain cannot yet support.

This isn’t a tweak — it's a wholesale policy reversal. If passed as written, the bill would disqualify shovel-ready projects, drive up energy costs and put tens of thousands of clean energy jobs at risk.

According to the Solar Energy Industries Association (SEIA), the bill could erase $285 billion in private investment by 2030, eliminate up to 330,000 jobs and put 331 solar and energy storage manufacturing facilities in jeopardy.

Altus Power is joining with SEIA and others in the industry to ask the Senate to reconsider three key provisions:

1)     The abrupt repeal of tax credits without a phaseout — which would disqualify many projects already years into development.
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2)     A 60-day construction deadline from the date of enactment — an unrealistic window for most solar developers given permitting, interconnection and financing timelines.
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3)     Ambiguous and onerous restrictions on foreign-sourced components, subcomponents, etc. – despite widespread reliance on imported components even for U.S. assembled solar panels.

According to SEIA President Abigail Ross Hopper, “This bill would force many developers to walk away from projects that communities have already approved and supported. It puts clean energy jobs, lower electricity costs and grid reliability on the line.”

The coming weeks will reveal whether the Senate is willing to adjust the House’s version of the bill to better reflect market realities and protect the clean energy momentum built over the past decade.

The stakes are incredibly high, and we at Altus Power are doing everything we can to advocate for a more pragmatic and forward-looking policy. Regardless of the outcome, we’re built to endure — and lead.

If you’d like to join us in defending American energy, please visit: https://solarpowersamerica.org/campaign/defend-american-energy/.