Residential Solar Faces Quick Impact from New Energy Bill

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    WASHINGTON — As Republican lawmakers in Congress charged ahead with a proposed extensive tax and spending reduction legislation, a North Carolina renewable energy company executive warned his workforce of potential negative impacts. Will Etheridge, CEO of Southern Energy Management in Raleigh, informed his 190 employees that substantial cuts to clean energy tax incentives could have dire consequences, including possible job losses within the company.

    He emphasized the importance of transparency and truth, even if the realities are discomfiting. The legislation, currently under discussion in the House, could significantly dismantle clean energy supports, such as the 30% tax credit for residential rooftop solar. This tax credit was initially expanded by the Biden administration’s Inflation Reduction Act to last into the next decade.

    The removal of these credits was criticized by former President Donald Trump as part of a “green new scam,” suggesting that taxpayer money was improperly diverted to support international climate agendas and renewable energy sources like wind and solar power. Industry experts and analysts warned that the Republican-backed proposal could stymie sector growth and result in job losses.

    Bob Keefe, executive director of E2, a group promoting pro-environment initiatives, highlighted the adverse impact on the residential solar sector. Trump’s “Big Beautiful Bill” targets renewable energy in general, planning to phase out tax credits for utility-scale solar and wind, although the residential solar credit would be cut sooner.

    In recent years, North Carolina has witnessed over $20 billion in clean energy investments. Etheridge, whose business specializes in solar panel installation and optimizing building energy efficiency, campaigned for adjustments to the bill alongside several others in the industry. One advocate was Republican U.S. Sen. Thom Tillis of North Carolina, who voted against the measure despite pressure from Trump, which ultimately dissuaded Tillis from seeking reelection.

    Etheridge warned that the elimination of the residential tax credit would likely compel him to lay off 50 to 55 workers. He described the removal of these credits as a “bait and switch” after investing heavily into his business, which initially benefited from the tax credits’ stability.

    In defense of the proposed changes, Adam Michel, director of tax policy studies at the Cato Institute, a libertarian think tank, argued that businesses relying on federal support were unlikely to be sustainable. He doubted the shuttering of clean energy firms, suggesting that employee transition to more stable industries would be beneficial.

    Even before the bill’s debate began, E2 experts reported that $14 billion in clean energy investments nationwide had been delayed or scrapped this year. The Senate’s version passed on Tuesday, easing some burdens on commercial projects but maintaining significant impacts on residential tax credits.

    Karl Stupka, president of NC Solar Now based in Raleigh, which employs around 100 people, commented on this shift. Approximately 85% of his company’s operations are residential, and he voiced concerns that focusing benefits on commercial ventures deprives the average American of opportunities. If the bill becomes law, Stupka projected a layoff of half his staff, with broader ramifications throughout the industry.

    He anticipated a rush beforehand to complete solar jobs ahead of the credit termination, warning of severe aftereffects.