What Will Solar Look Like Under The Trump Administration?
Here in the Sunshine State, the future of solar energy is bright, but recent changes in the political realm may cast shadows on its future growth.
Today, our team at Solar Bear Orlando discusses how the Trump administration’s policies might impact our industry and what that might mean for Orlando homeowners who are hoping to install a solar array.
Federal Solar Investment Tax Credit (ITC)
Soon after stepping back into office, President Trump signed an executive order that proposes to temporarily suspend further funding to the Inflation Reduction Act, which encompasses the Federal Solar Investment Tax Credit. It currently provides a 30% tax credit for qualifying solar installations.
The specifics of the executive order are unclear, and any changes to the ITC will require a new law being passed by Congress. For the past few administrations, there has been bipartisan support for solar energy, and in his last term, President Trump signed legislation to extend solar tax credits, so that is a good sign.
Plus, the ITC is vital to many industries and companies. Eliminating the ITC would halt current large-scale solar projects that contribute to green energy and job creation here in the United States. Over 200,000 jobs depend on solar energy.
*Note: We would like to emphasize that we are solar experts, not legislators or tax experts, so we recommend that you see your accountant if you have any questions concerning any policies or tax incentives.
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Tariffs
As you are likely aware, the Trump administration has also put in place tariffs on many of our trade partners, including China. This could have a major impact on the solar industry. These tariffs could lead to an increase in prices for imported solar components, making the initial investment into solar even more of a challenge for many people.
That said, there is also an opportunity for manufacturers here in the United States to step up and boost the economy while creating jobs in the solar sector by building these components here.
We know that the impact of tariffs can be stressful, but we also recommend that Florida homeowners consider the long-term benefits of solar energy, which can outweigh the initial costs of installation that might be impacted by tariffs. The return on investment from reduced electricity bills and available tax incentives can still be significant despite higher upfront costs due in part to tariffs.
Though these tariffs will certainly pose many challenges, they should also be viewed as a catalyst for growth and innovation here locally.
And remember, these situations with the ITC and tariffs are still developing, and the long-term impact of any policies or changes is yet to be fully understood. If you are planning to install solar, we recommend doing it now before any changes or tariffs are implemented.
Lean on Solar Bear Orlando
While recent political policies, potential tariffs, and changes to the Federal Solar Investment Tax Credit are hanging in the balance and may present challenges for the solar industry as a whole, we are optimistic about the future of solar in our amazing state.
The benefits of going solar remain despite any political issues, and the advantages of reduced electricity costs and available local tax incentives still offer Central Florida residents significant returns on investment.
Ready to go solar or want to learn more about the available tax credits? Call our friendly team at Solar Bear Orlando at (727) 471-7442. We’re always here to help!