Joy Seitz
Submitted photo
By Joy Seitz | American Solar & Roofing
In early May, the U.S. House Ways and Means Committee passed a budget reconciliation bill that will eliminate the 30% solar tax credit for homeowners choosing to power their home with reliable, clean energy. This proposal to slow the deployment of this form of energy was made on the heels of the White House stating we are in an “energy emergency” back in January.
President Donald Trump’s One Big Beautiful Bill Act eliminates clean energy incentives for homeowners, notable Section 25D of the federal tax code. The code gives homeowners a 30% tax credit for installing rooftop solar systems. The bill also threatens domestic solar manufacturing, which is vital for energy security and job creation. These policies previously relieved Americans of utility bill pressure and allowed them to take control of their power supply.
The Solar Energy Industries Association anticipates steep, widespread consequences as a result of bill. This includes the elimination of an estimated 300,000 current and future American jobs (about 86,000 in solar manufacturing), and the jeopardization of nearly 300 American solar and storage factories, equating to the loss of 145,000 gigawatt-hours of solar generation by 2030. What’s more, the bill is projected to add between $3.3 trillion and $5.2 trillion to our national debt if its temporary provisions are made permanent.
This tax credit elimination proposal erases the decades of work and billions of dollars Arizonans have invested in building a clean energy economy. It also comes at a time of widespread and ever-increasing demand on the energy grid, due to the requirements of generative AI technology and the development of data centers in Arizona and nationwide. Continued industrial growth is pushing our grid to its limit, and despite solar being uniquely positioned to deploy quickly and alleviate this strain, the bill stands in the way of this sustainable, renewable energy solution.
In Arizona, repealing existing clean energy federal tax credits would increase the average Arizona household’s energy costs by more than $20 per year in 2030 and nearly $160 per year in 2035, according to a report by think tank Energy Innovation.
Atop growing energy demands and the economic consequences of the One Big Beautiful Bill Act, climate change is exacerbating these issues. Arizona — including the cities of Phoenix and Tucson — is already one of the fastest-warming states in the U.S., with average temperatures rising more than 2.5 degrees Fahrenheit since the 1970s.
As our state experiences more frequent and severe heat waves, droughts and wildfires, these weather patterns only serve to contribute toward energy grid demands.
The consequences of removing the rooftop solar initiative, and the policies enacted by the bill against renewable energy, are too great and are occurring during what the administration itself has deemed an energy crisis.
Please join me and others in the industry in protecting solar energy, a clean and renewable energy source, by calling your representatives and opposing senators to express your stance on protecting Section 25D of the federal tax code.
Editor’s note: Joy Seitz is CEO and owner of Phoenix-based American Solar & Roofing. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
