The US is seeing a solar manufacturing surge. Can it survive a loss of energy incentives?

AI generated summary

The U.S. solar industry is experiencing a significant manufacturing surge, adding 8.6 gigawatts (GW) of new solar module manufacturing capacity in the first quarter of 2025, according to a report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. This growth is attributed to the establishment and expansion of factories in states like Texas, Ohio, and Arizona, alongside a doubling of solar cell production capacity in South Carolina. Despite this progress, the industry faces potential challenges due to new tariffs and proposed changes to federal tax credits, which could create uncertainty and threaten long-term growth.

SEIA warns that if Congress does not amend legislation that would render energy tax incentives ineffective, the U.S. could face an energy shortage, increased electric bills, and a halt to the manufacturing boom. The report indicates that while solar continues to dominate new electricity generation, the proposed changes to federal incentives and ongoing tariff issues could hinder future growth. SEIA's analysis suggests that such legislative actions could lead to significant job losses, factory closures, and a decline in energy production, ultimately affecting the U.S.'s ability to compete globally in the energy sector.