US Reconciliation Bill Risks Energy Shortage, Says SEIA

US Reconciliation Bill Risks Energy Shortage, Says SEIA

The latest legislation passed by the US House Ways and Means Committee and advanced through the House Budget Committee last week could jeopardize nearly 300 American solar and storage factories, according to Solar Energy Industries Association (SEIA) analysis.

It could potentially lead to the loss of 145,000 gigawatt-hours (GWh) of solar generation by 2030 — more than the annual electricity consumption of Pennsylvania as per the findings. Thereby, SEIA is urging Congress to revise the legislation to protect solar and storage investments and support American jobs, manufacturing, energy security, and consumer choice.

A new analysis released by the Solar Energy Industries Association (SEIA) warns that the bill, if enacted without changes, could result in nearly 300,000 current and future American jobs being lost, including 86,000 in solar manufacturing.  Roughly 80% of all at-risk factories, jobs, and investments in the solar manufacturing sector are in states that voted for President Trump.

Potential Impact Of The Reconciliation Bill

If enacted, the bill could trigger an immediate decline in solar and storage investments. By 2030, up to $220 billion in investment could be lost. The United States needs to add 206.5 GW of new energy capacity by 2030, with solar expected to supply 73% of those capacity additions.

Without solar and storage, America will have an energy shortage that raises utility bills and slows economic growth. The bill would also repeal the Section 25D residential tax credit, a key driver of energy freedom for middle-class families. Repealing it leaves households with no accessible path to lower their costs with solar.

“There is still time to improve this bill which, as written, represents a crisis for America’s ability to build the energy infrastructure we need to meet surging demand,” said SEIA president and CEO Abigail Ross Hopper. “If this proposal becomes law, nearly 300 US factories—mostly in red states—could close or never open, and we simply won’t have the energy we need to power American innovation in AI and data centers.”

“Passing this bill would create a catastrophic energy shortfall, cede AI and tech leadership to China, and damage some of the most vital sectors of the US economy,” Hopper added.  “But the story isn’t over. The Senate has the opportunity to put forward a more thoughtful and measured proposal that achieves President Trump’s American energy dominance vision.”