Washington, D.C. — Solar energy advocates recently issued a warning that Americans may face higher electricity bills, partly due to setbacks in clean energy development. As electricity demand surges, clean energy supply is being squeezed, an issue that not only impacts the clean energy sector but also directly affects the financial well-being of households and businesses.
The U.S. solar industry has experienced rapid growth, adding 18 gigawatts (GW) of capacity in the first half of 2025 alone, accounting for more than half of all new grid capacity. However, this growth momentum is now at risk of slowing. Abigail Ross Hopper, President and CEO of the Solar Energy Industries Association (SEIA), pointed out that the federal government is currently limiting supply while demand continues to rise. In most markets, solar power is the most affordable form of energy, and integrating more solar into the grid can lower overall costs—yet the current situation is moving in the opposite direction.
A new report from SEIA indicates that Americans are facing rising energy bills. Significant changes have been made to the clean energy tax credits established during the Biden era under the Inflation Reduction Act, particularly due to the “Great Beautiful Act” signed by President Donald Trump in July, which gradually phased out numerous clean energy tax incentives, further driving up energy costs. According to Ross Hopper, since these policy changes, the federal government has used various means to increase the difficulty of building solar and energy storage projects across the country. She predicts that these changes, along with federal cutbacks, will reduce solar power generation by up to 55 GW by 2030—a 25% decline.
“Even setting aside economic policies, we can foresee the consequences. Electricity prices are already rising, with a year-on-year increase of 10%. If supply restrictions continue, this trend will persist,” Ross Hopper emphasized. Solar advocates widely believe that rapid and low-cost solar projects are key to meeting the electricity demands of emerging technologies such as data centers and electric vehicles. However, not everyone agrees with using taxpayer money to subsidize the solar industry. Republican Congressman Mike Kelly of Pennsylvania stated, “If an energy source is already market-viable, it doesn’t need subsidies. I’m not opposed to solar, wind, or any form of energy, but we must pursue sustainable electricity and energy. While solar is important today, we must carefully consider where we direct spending and whom we subsidize.”
It is worth noting that solar development is not limited to Democratic-leaning “blue states.” This year, 77% of new solar power facilities were built in states where President Trump won, including eight of the top ten states in solar power generation. Ross Hopper noted that political resistance to the solar and energy storage industries is directly affecting these voters who supported President Trump. Amid the interplay of policy changes and market demands, the future of the U.S. solar industry remains uncertain.
