This Week in Solar

This week, the solar world is on edge as we wait for the Senate to come back next week and write their version of the “Big, Beautiful Bill.”

Call your senators and advocate for the Inflation Reduction Act’s Clean Energy Tax Credits.

In the meantime, I wanted to highlight some positive developments for the solar industry this week.

I think we all need it.

1. Texas anti-solar bills die in House, and Texas passes bill to fast-track home solar

What's new:

Three major anti-renewable energy bills (SB 819, SB 388, and SB 715) failed to move forward before the Texas House's legislative deadline. SB 1202, a bill to expedite permitting for home solar + battery systems, passed the Texas legislature and heads to Gov. Abbott.

This move bought Texas Solar companies more time, since the Texas Legislature convenes every two years in odd-numbered years. The next regular session is scheduled to start on January 12, 2027.

Why it matters:

The bills would have imposed heavy restrictions on solar, wind, and battery storage in Texas. The new law reduces delays and lowers costs for families installing backup power, especially after crises like Winter Storm Uri.

Go deeper:

Bills that died:

* SB 819 would have added Extra fees and permitting hurdles for renewables only.

* SB 388 would have required half of the new ERCOT generation to come from non-battery, "dispatchable" sources.

* SB 715 would've forced existing renewable projects to add expensive backup systems.

Over 100 groups opposed these bills, and their legislative blitz has been successful this legislative round.

Bill that passed:

Senate Bill 1202's new benefits for solar:

* Homeowners can use third-party engineers to get immediate approval to start construction.

* Regulatory authorities must issue final permits within two business days.

If not vetoed by the Governor's office, the bill will become law on September 1, 2025.

2. Tariff loophole could open on June 2

What's new:

The American Alliance for Solar Manufacturing warns that a clerical delay could let tariffed Southeast Asian solar panels enter the U.S. without paying duties.

Why it matters:

Millions of solar panels could enter untaxed, undermining the newly approved anti-dumping tariffs that the International Trade Commission claims will protect U.S. manufacturers of solar panels.

Go deeper:

* Preliminary tariffs from Dec. 4, 2024, expire after 180 days (on June 1). If the ITC doesn't publish its final decision in the Federal Register by June 2, products can enter tariff-free. A similar loophole already allowed products to skip countervailing duties back in February.

* Imports from Cambodia, Malaysia, Thailand, and Vietnam are involved.

3. Wind + solar outpaced coal + nuclear in Q1 2025, Accounting for 98% of new capacity

What's new:

Wind and solar generated 19% of U.S. electricity in Q1 2025 (more than coal or nuclear) per EIA data. Solar and wind made up nearly all new U.S. generating capacity in Q1 2025.

Why it matters:

Renewables are rapidly replacing legacy power sources on the U.S. grid. Despite political headwinds, the market is still choosing renewables.

Go deeper:

* Solar output grew 33.7% year-over-year; wind rose 9.5%. In March alone, solar + wind hit 23.9% of U.S. electricity. Solar now exceeds hydropower generation nationally.

* Solar was 72.3% of all new Q1 capacity; wind was 25.5%.

* Renewables now make up 31.5% of utility-scale generating capacity.

* Solar has been #1 in new capacity for 19 straight months. By 2028, solar could overtake gas.

Our Sources:

Anti-solar bills die in Texas House

Texas legislature passes bill to expedite solar, energy storage permitting – pv magazine USA

Clerical loophole could let Southeast Asian solar panels enter US without antidumping duties

US wind + solar outproduced coal and nuclear in Q1 2025 – EIA | Electrek

FERC: Solar + wind made up 98% of new US power generating capacity in Q1 2025 | Electrek

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What’s new:

A lot has happened in the last week, alongside the Republican-led House trying to dismantle the Inflation Reduction Act.

Here’s an overview of the timeline:

May 16

The House Budget Committee blocked the initial draft budget bill. Five Republicans joined Democrats to stop the bill from advancing.

One of their reasons?

Some Freedom Caucus members believed it didn't go far enough in cutting clean energy tax credits (ending the "Green New Scam," in the words of one Congressman).

May 20

The U.S. International Trade Commission voted to impose new tariffs on solar panels from Southeast Asia. Tariffs up to 3,500% will take effect June 16.

May 21

Reports confirm that solar leasing dominates the commercial solar market.

* Third-party ownership reached 72% in 2024.

* Transferable tax credits have been key to that growth.

May 22, early morning

The House passed a revised budget bill in a 215–214 vote.

The new bill includes harsher restrictions on solar tax credits after last-minute changes.

Two Republican Congressmen who supported clean energy, Andrew Garbarino and David Schweikert, missed the vote.

What this House bill would do if passed:

* End the residential solar tax credit (25D) after 2025.

* Eliminate the ability for solar leasing companies to use the 48E tax credit.

* Require projects to start construction within 60 days of enactment or be placed in service by the end of 2028 to qualify for 48E and 45Y credits.

* End 48E and 45Y with no phase-out in 2028.

* Restrict credit transferability starting in 2027.

* Move compliance with Foreign Entity of Concern (FEOC) restrictions to the end of this year, December 31, 2025.

* Preserve 45X manufacturing credit through 2029, with a phase-down through 2031.

Next step

The bill moves to the Senate, where changes are expected.

Senate Republicans have said they will propose a different approach. No tax credit changes will take effect unless the Senate agrees and the bill becomes law.

Go Deeper:

House Moves to Eliminate Solar Tax Credits

More about the tariffs:

What happened:

On May 20, 2025, the U.S. International Trade Commission (ITC) ruled that solar imports from Cambodia, Malaysia, Thailand, and Vietnam harmed U.S. manufacturers. This clears the way for new anti-dumping and countervailing duties.

Tariff details:

Tariffs were proposed by the Dept. of Commerce in April 2025. Final rates vary by country and manufacturer:

* Cambodia: 650%–3,500%

* Malaysia: 14%–250%

* Thailand: 375%–972%

* Vietnam: 120%–813%

Tariffs will apply to silicon solar cells and modules. The Commerce Dept. will issue formal tariff orders on June 9. U.S. Customs will begin collecting tariffs on June 16.

Background:

The petition was filed in April 2024 by the American Alliance for Solar Manufacturing Trade Committee, led by Hanwha Qcells and First Solar. The group alleged that Chinese-owned companies used Southeast Asia as a base to avoid existing Chinese tariffs.

The ITC agreed, finding these imports to be unfairly priced and subsidized.

Industry reaction:

* Supporters of the tariffs say they will protect U.S. solar manufacturing and enforce trade law.

* Opponents (including SEIA) argue the tariffs could raise costs and hurt U.S. solar producers who rely on imported cells.

* SEIA warns the tariffs could stall solar deployment and undermine domestic manufacturing growth.

Current impact:

Imports from the four countries have already dropped in anticipation. The tariffs add further pressure to a solar industry already facing higher interest rates and tax credit uncertainty.

Sources:

Republicans say clean energy cuts in budget bill aren’t harsh enough

House passes Trump’s ‘big, beautiful bill’ in marathon overnight session

House passes more bruising budget bill for solar industry

More commercial and community solar projects financed through TPO in 2024

It’s official: High tariffs initiated on solar cells and panels from Southeast Asia

US trade panel's vote paves way for stiff tariffs on many solar imports

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House Advances a Bill to Roll Back Clean Energy Credits

The House GOP passed their draft budget on Tuesday, targeting clean energy provisions from the Inflation Reduction Act (IRA).

Senate Republicans say the bill is only a starting point and that key changes will be needed.

What the House bill does:

The draft legislation from the Ways and Means Committee would:

* Eliminate the residential solar tax credit (25D) after 2025

* Phase down utility-scale credits (48E and 45Y) starting in 2029, ending by 2032

* Preserve the manufacturing credit (45X) through 2031, then end it abruptly

* Eliminate credit transferability two years after enactment

* Shift eligibility for the credits from "start of construction" to "placed in service."

* Impose sourcing restrictions linked to Foreign Entities of Concern (FEOC restrictions)

* Allocate $2 billion to the Strategic Petroleum Reserve

* Propose broader fossil fuel permitting reforms

Senate Republicans push back:

Several Senate Republicans say the House bill goes too far and lacks flexibility.

* Sen. Kevin Cramer (R-ND) said the 2029 phaseout is too soon for newer technologies like advanced nuclear and geothermal: "It's too short for truly new technologies."

* Cramer has proposed ending credits only for "mature technologies" like wind and solar.

* Sen. Shelley Moore Capito (R-WV) called the House approach a "blanket repeal" and said she expects it to change.

* Sen. John Hoeven (R-ND) described the bill as a starting point for negotiations.

As we know, four Senate Republicans warned that repealing IRA credits could raise energy prices and undercut recent manufacturing gains in an April letter.

However, 21 House Republicans previously advocated for the Inflation Reduction Act shortly after President Trump’s election, yet voted for the current bill, which is effectively a repeal.

What's next:

* House Republicans aim for a floor vote before Memorial Day.

* The Senate is expected to write its own version of the bill.

* Any changes in the Senate would require a second House vote.

The bottom line:

The House bill would significantly scale back clean energy incentives, especially for behind-the-meter solar. Senate Republicans have indicated they want a different approach, meaning the current proposal is unlikely to pass as written.

Solar is Top Source of New Electricity-Generating Capacity for 19th Month in a Row

Solar energy continues to dominate U.S. electricity growth.

March 2025 marked the 19th consecutive month that solar was the largest source of new generating capacity, according to new data from the Federal Energy Regulatory Commission (FERC).

By the numbers:

* 31 solar projects came online in March, totaling 446 MW

* In Q1 2025, solar and wind provided 7,076 MW, or 97.8% of all new capacity

* Natural gas, once dominant, added just 147 MW in the first quarter (only 2% of the total)

* Oil added a marginal 11 MW

Solar's share of new capacity:

* 66.6% in March

* 72.3% for the first quarter

* Solar has been the top source of new capacity since September 2023

Context:

* Just five years ago, solar made up only 3.8% of capacity

* Ten years ago: 1.0%

* Solar's share of new capacity has increased more than tenfold in a decade

Texas Senate Passes Bill, Could Penalize Solar Without Backup Power if Passed By House

New legislation in Texas would require solar projects to purchase backup power or face financial penalties. Developers would need to buy backup power through natural gas or battery storage.

What’s in the bills:

* Companion bills HB 3356 and SB 715 aim to address perceived grid “reliability” issues

* The Senate passed SB 715; House version is still pending a vote

* The bill would apply to both new and existing solar projects

The key provision:

Solar plants would have to “match” their power output at night, when they aren’t normally expected to produce electricity.

If not, they’d be required to buy backup power or face fines.

Critics warn:

* Legislation could shut down existing solar operations

* It may raise electricity costs by $5.2 billion/year, according to the Texas Association of Business

* Consumers could pay $225 more per year

Part of a broader trend:

This is the third major Texas Senate bill aimed at limiting renewable growth:

* Senate Bill 388 would require 1 MW of new gas for every new MW of renewables

* Senate Bill 819 seeks to restrict land leasing for solar and wind

Why it matters:

The legislation reflects a shift in Texas GOP politics.

Despite 80% of Republican voters believing that renewables improve grid stability, recent primaries reduced pro-renewable energy voices in the state House.

Our Sources:

Draft budget kills residential ITC, preserves large-scale and manufacturing credits

Solar ticks 19th consecutive month as largest source of new electricity capacity in US

Defend American Energy - Solar Powers America

Senate Republicans Balk at House Plan to Gut Energy Tax Cuts - Bloomberg

Texas bill would require solar developers to pay for natural gas or energy storage backup power

Texas Senate passes bill requiring solar plants to provide power at night

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit exactsolar.substack.com

Clean Energy Tax Credits in the Balance

What’s new:

* The House Ways and Means Committee is expected to mark up a budget reconciliation bill on Tuesday, May 13th. The final text is not yet public, but draft language could be released as early as this weekend.

* A vote on the full reconciliation package could come before Memorial Day.

Key concerns:

* The 45X tax credit may remain, but with a foreign entity of concern (FEOC) restriction so strict that it becomes unworkable.

* 25D (residential solar credit) remains uncertain. Fewer lawmakers have defended it compared to other credits.

* 48E and 48C (tech-neutral and manufacturing credits) may be phased out.

Counterpoint:

* Rep. Andrew Garbarino is circulating a marker bill that would preserve many clean energy tax credits, including a more workable FEOC standard (based on ownership only) and no cuts to 25D or 45X.

Why it matters:

* What seems safe could still be cut. We don’t know that’s going to stay in or be cut, but the Solar Energy Industries Association is urging solar businesses to contact lawmakers immediately to support 25D, 45X, and 48E and push back against overly restrictive FEOC language.

38 House Republicans call for full IRA repeal

What’s new:A group of 38 House Republicans sent a letter urging full repeal of the Inflation Reduction Act as Congress goes through budget reconciliation.

* They argue the IRA will cost $1 trillion and undermine “reliable” energy sources like coal and gas.

* The letter warns against preserving any individual clean energy incentives, stating that doing so risks “preserving the entire IRA.”

Why it matters:Even though some Republicans support specific credits like 45X, and others support the tech-neutral and residential credits, there’s still a push from the executive branch to eliminate the entire IRA.

Bipartisan bill aims to protect solar tax credits

What’s new:Reps. Raul Ruiz (D-CA) and Gabe Evans (R-CO) introduced a bill to safeguard and expand the 45X tax credit from the Inflation Reduction Act.

* The “Critical Minerals and Manufacturing Support Act” would increase incentives for domestic production of solar, wind, batteries, and critical minerals.

* The bill also emphasizes workforce development and manufacturing job creation.

Why it matters:More than 1,500 solar companies support preserving 45X. The credit is a cornerstone of domestic clean energy manufacturing policy and is under threat.

PJM, industry groups ask to dismiss a complaint

What’s new:PJM and clean energy trade groups asked the Federal Energy Regulatory Commission (FERC) to dismiss a complaint seeking to overturn PJM’s last capacity auction.

* The auction raised total costs in PJM’s region from $2.2 billion to $14.7 billion, increasing some customer bills by up to 20%.

* Consumer advocates say the results may have been manipulated based on false projections. PJM and others argue that retroactive changes would harm investor confidence and violate the regulatory precedent that’s currently in place.

Why it matters:The case highlights growing tension over the energy market’s volatility and grid reliability.

Farmers turn to solar for income and water savings

What’s new:Farmers in California’s Central Valley are fallowing land and installing solar panels to reduce water use and pad their income.

* A new study found solar generates $124,000 per hectare annually (25x more than crop farming).

* Solar installations help run irrigation equipment, generate grid electricity, and support grazing and pollinator habitats.

* Some crops, like leafy greens, are now being grown under the panels in cooler, shaded environments.

Why it matters:Agrivoltaics offers financial and ecological benefits. This idea was pioneered by several farmers around the country, most notably Byron Kominek, who turned his land into Jack’s Solar Garden and created the Agrivoltaics learning center.

Ohio energy bill passes without community solar

What’s new:Ohio passed House Bill 15, a sweeping energy reform package, but removed a proposed community solar pilot from the final version.

* The program would have lowered energy bills and increased local energy choice.

* Clean energy advocates criticized the removal but praised other aspects of the bill, including the repeal of coal subsidies and new support for energy storage.

Why it matters:Despite bipartisan support and strong public backing, community solar was excluded from the final bill. Local advocates plan to keep pushing for future inclusion.

Today’s Sources:

Farmers are making bank harvesting a new crop: Solar energy

Community solar pilot program doesn’t make it into final Ohio energy bill

Bipartisan bill would shield climate law tax credit

38 House Republicans seek full repeal of IRA

PJM, others urge FERC to dismiss ratepayer advocates’ capacity auction complaint

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit exactsolar.substack.com

Republicans Back Community Solar in Multiple States

What’s new:

Republican lawmakers in Iowa, Ohio, Georgia, and Missouri have introduced or supported bills to expand community solar.

* Supporters cite economic benefits, property rights, and local energy savings as their reasons for backing these bills.

* Some GOP-aligned groups backing these bills include Americans for Prosperity, Walmart, and the American Legislative Exchange Council.

By the numbers:

* 25 states already have community solar policies.

* Community solar capacity grew 35% in 2024, reaching 8.6 GW nationwide.

* A typical 5-MW project supports 100 jobs and adds $14 million in economic activity.

Why it matters:

Despite federal partisan divides and federal pushback against clean energy and the Inflation Reduction Act, community solar is gaining traction in red states.

$6.9B in Clean Energy Manufacturing Canceled Due to Policy Uncertainty

What’s new:

In Q1 2025, six U.S. clean energy manufacturing projects representing $6.9 billion in investment were canceled (the highest quarterly value on record according to Rhodium Group and MIT CEEPR).

* When including early-stage cancellations, the total rises to $9 billion.

* Simultaneously, companies announced $9.4 billion in new projects, up 47% from Q4 2024 but down 23% from Q1 2024.

Why it matters:

Policy uncertainty is causing investors to cancel projects despite the expansion of domestic manufacturing being a stated goal of Republican lawmakers.

Boviet Solar Opens Panel Factory in North Carolina

What’s new:

Boviet Solar has begun production at a new 2-GW solar panel factory in Greenville, NC.

* The company invested $300 million and hired 370 employees so far.

* A second factory next door, now under construction, will produce 3 GW of solar cells and is expected to begin operation in late 2026.

* Between both factories, 1300 jobs will be created in the region.

Context:

Boviet is a Vietnamese-founded company and a subsidiary of a Chinese manufacturer. Its Vietnam-made solar cells now face a 307.78% U.S. tariff, so a domestic arm serving American projects is a strategic move.

Why it matters:

The expansion supports domestic content requirements and reflects growing interest in reshoring solar manufacturing.

Renewables Surpass Coal on PJM Regional Grid

What’s new:

Renewable energy (14% of which is solar) now generates more electricity than coal in the PJM Interconnection region, which serves 65 million people across 13 states and D.C.

* As of April 2025, renewables generated 11,800 MW, slightly above coal’s 11,700 MW.

* Solar set three new generation records in PJM territory in April, reaching 14% of electricity demand.

Context:

The milestone comes as the Trump administration promotes coal through executive actions.

Why it matters:

PJM is notoriously slow to connect renewable power sources to the grid, but progress is still being made.

Links to stories:

Community solar is winning over Republican lawmakers around the US - Canary Media

The State of US Clean Energy Supply Chains in 2025 - Clean Investment Monitor

Renewables surpass coal on Mid-Atlantic electric grid - Allegheny Front

PHOTOS: Boviet Solar starts production at North Carolina panel factory - Solar Power World

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Chinese-Backed Southeast Asian Solar Manufacturers Hit With Steep Duties

What’s new:The U.S. Department of Commerce finalized high tariffs on solar cells and panels from Cambodia, Malaysia, Thailand, and Vietnam.

* Cambodia was hit hardest: one group of companies faces a 3,521% total tariff.

* These tariffs target Chinese-owned and Chinese-backed manufacturers accused of bypassing existing tariffs by producing in Southeast Asia.

* The trade case is part of a long-running dispute that began in 2012, when U.S. manufacturers accused China of dumping solar panels into the American market.

What’s next:The U.S. International Trade Commission will decide by June 2 whether these imports are harming domestic manufacturers. If so, the tariffs take effect.

Why it matters:This could reshape solar supply chains and pricing, especially for utility-scale projects, and further pressure manufacturers to expand U.S.-based production.

Solar Policy Reform Sweeps The U.S.

What’s new:Nearly every U.S. state acted on solar policy in the first quarter of 2025, according to the latest 50 States of Solar report from the NC Clean Energy Technology Center.

* 193 policy actions were taken across 47 states, D.C., and Puerto Rico.

* Top focus areas: net metering, community solar, and residential fixed charges.

* States are increasingly moving beyond traditional net metering models and launching permanent community solar programs.

Why it matters:States are recognizing that community solar is a great option for helping low-income homeowners lower their utility bills, but may be moving away from Net Metering as an incentive to make solar more enticing.

New Jersey Expands Community Solar Program By 250 MW

What’s new:The New Jersey Board of Public Utilities opened another 250 MW in its Community Solar Energy Program, bringing the total to over 750 MW.

* 51% of new capacity must serve low- and moderate-income residents.

* 28,000+ subscribers have saved a combined $7 million since the pilot launched.

* Program updates include automatic enrollment, consolidated billing, and simplified eligibility.

What’s next:Registrations for new projects open April 30 and will be accepted on a rolling basis.

Why it matters:More and more states are expanding or creating community solar programs, acknowledging their potential to help low-income residents with ever-increasing power bills.

Helpful Articles to Learn More

Commerce reveals final tariff amounts on Southeast Asian solar imports

Can 3,500 Percent Tariffs Protect the U.S. Solar Industry?

NCCETC report: US busy with net metering, community solar policy in Q1

New Jersey expands community solar program by 250 MW

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit exactsolar.substack.com