As the U.S. Senate passed a sweeping tax and spending bill on July 1, 2025, the clean energy sector, particularly residential solar, is bracing for a severe blow that threatens to reverse years of growth and job creation. The legislation, dubbed the "Big Beautiful Bill," aims to cut clean energy tax credits established under President Joe Biden's 2022 Inflation Reduction Act, with a particular focus on eliminating the 30% tax credit for rooftop solar systems by the end of this year. The bill now heads to the House for a final vote and could be signed into law by President Donald Trump as early as July 4.
In North Carolina, where more than $20 billion has been invested in clean energy projects recently, the impact is already being felt. Will Etheridge, CEO of Southern Energy Management in Raleigh, warned his 190 employees about impending job losses, stating, "(The changes) would almost certainly include the loss of jobs on our team. I’m telling you that because you deserve transparency and the truth — even if that truth is uncomfortable." Etheridge anticipates laying off 50 to 55 workers due to the loss of the residential solar tax credit, which he called a "bait and switch." His company, which installs solar panels and promotes energy efficiency, had counted on the stability of these tax incentives to grow and sustain its workforce.
Similarly, Karl Stupka, president of NC Solar Now, which employs about 100 people and derives roughly 85% of its business from residential solar, expressed grave concerns. He noted that while the Senate bill eases the blow to commercial solar projects by allowing some time to begin construction before phasing out tax credits, it "destroys the residential portion of the tax credits." Stupka predicted layoffs of half his staff and warned of a "pretty severe shock wave" that would ripple through the industry.
Long Island’s solar industry, too, faces a bleak outlook. Home to nearly one in ten homes equipped with solar panels, the region has embraced solar energy for over two decades. David Schieren, CEO of EmPower Solar in Island Park, described the situation bluntly: "There’s going to be near-term pain. You can’t sugarcoat that. Very few businesses will escape unscathed." EmPower Solar’s residential business has already shrunk by 50% in the past year, though commercial projects have seen some growth. SUNation Solar, a Ronkonkoma-based company, is urging customers to "Lock in your 30% federal tax credit before it goes away!" CEO Scott Maskin called the legislation a "dark day" for Long Island solar, warning that the "traditional residential installer base will cease to exist" once the tax credits expire. Kevin Macleod, owner of KPS Solar in Bay Shore, predicted a crash that would hit larger companies with higher overhead hardest.
The federal subsidy has been crucial in making solar systems affordable, covering roughly a third of the $20,000-plus cost and enabling many installations to pay for themselves within seven years. The bill’s elimination of this credit for purchased solar systems by the end of 2025, and for leased systems by the end of 2027, threatens to stall this progress.
President Trump has long criticized green energy initiatives, labeling clean energy tax credits a "green new scam" and focusing his energy policies on fossil fuels and nuclear power. This stance has contributed to the bill’s aggressive cuts to renewable energy incentives, including phasing out tax credits for utility-scale solar and wind projects. Trump’s influence was evident in North Carolina, where Senator Thom Tillis, despite opposing the bill, announced he would not seek reelection after Trump indicated support for a primary challenger.
While some of the harshest provisions, such as an excise tax on renewable energy projects using foreign materials, were removed during Senate negotiations, the bill still guts many key programs. It kills incentives for domestic solar manufacturing and the Clean Electricity Production Credit, and eliminates the Domestic Content bonus that encouraged the use of U.S.-made components. Rob Gardner, Vice President of Congressional and Regulatory Affairs for the Solar Energy Manufacturers Association (SEMA), acknowledged that the bill maintains production tax credits for manufacturers but warned it creates "uncertainty for long-term demand for US products." He predicted a "flood of Chinese product" entering the market once the incentives expire, as American-made solar panels are costlier due to higher manufacturing expenses.
The U.S. Energy Information Administration forecasts a nearly 2% increase in domestic energy consumption over the next year, underscoring the need for continued renewable energy growth. Renewables accounted for almost 90% of new power generation capacity in 2024, with solar leading the charge. Yet, the bill’s tight deadlines to qualify for existing credits—requiring utility-scale projects to begin construction before June 2026 and be operational by the end of 2027—may jeopardize up to 600 gigawatts of new renewable energy capacity, including solar farms and battery storage projects in states like California and Texas, according to research by Cleanview.
Industry leaders have voiced strong opposition to the bill. Abigail Ross Hopper, CEO of the Solar Energy Industries Association, said it "undermines the very foundation of America’s manufacturing comeback," warning that "families will face higher electric bills, factories will shut down, Americans will lose their jobs and our electric grid will grow weaker." Jason Grumet, CEO of the American Clean Power Association, called the bill a "step backward" and an "intentional effort" to undermine "one of the fastest-growing sources of electric power." Environmental advocates have condemned the legislation as well. John Noël, Deputy Climate Program Director at Greenpeace USA, declared it a "vote that will live in infamy" for handing out fossil fuel industry subsidies. Joanna Slaney, Vice President for Political and Government Affairs at the Environmental Defense Fund, said the bill is "effectively cutting off supply of cheap energy right when the US needs it most." Notably, the bill also grants a 10-year reprieve from fees on methane pollution, a potent greenhouse gas, further fueling environmental concerns.
With federal support waning, solar companies on Long Island and elsewhere are looking to state governments for relief. New York State currently offers a $5,000 residential solar tax credit, but solar groups are pushing to double this to at least $10,000 and to increase the solar energy mandate from 10,000 to 20,000 megawatts by 2035. Governor Kathy Hochul’s office acknowledged the challenge, with spokesman Ken Lovett stating, "No state can single-handedly undo the economic damage this legislation would cause. We urge Congress to reject this reckless and backward step."
The clean energy sector now faces a critical crossroads. The sweeping changes proposed by the "Big Beautiful Bill" threaten to unravel years of progress, putting thousands of jobs at risk, slowing the nation’s transition to renewable power, and potentially ceding ground to foreign manufacturers. As the House prepares to vote, the future of America’s solar industry hangs in the balance.
