The 2024 U.S. elections have ushered in a new political landscape that holds significant implications for the solar industry. The Solar Energy Industries Association (SEIA) recently hosted a comprehensive member briefing to dissect these developments and outline the path forward. Here’s an in-depth look at the critical insights shared during the webinar.
The Political Shift and Its Significance
While votes are still being counted in some regions, the broad national outcomes of the 2024 elections are becoming clear. Control of Congress and the White House directly impacts the solar industry, influencing everything from the defense of energy credits in the Inflation Reduction Act (IRA) to trade policies and overall business certainty.
SEIA has been proactively working over the past two years to build and strengthen relationships across the political spectrum. The goal has been to cultivate champions within the Republican Party who support solar, energy storage, and domestic manufacturing.
The Reconciliation Process and Energy Credits
One of the primary concerns discussed was the potential for changes to the energy credits established under the IRA. With the House of Representatives potentially shifting to Republican control, there’s a possibility that House leadership might pass a reconciliation act—a legislative tool that allows for expedited consideration of certain tax, spending, and debt limit legislation.
SEIA highlighted the importance of the Garbarino Letter, led by Representative Andrew Garbarino and signed by 17 other Republican members of Congress. The letter urged House Republican leadership to preserve the energy credits, emphasizing their critical role in job creation, economic growth, and energy independence.
IRA Implementation: Risks and Protections
The webinar delved into the status of IRA implementation, focusing on the potential tools the incoming administration might have to modify or revoke existing rules and guidance. Key points included:
- Final Rules: Certain provisions of the IRA are already finalized, making them more challenging to alter. Changing these would require a new proposed rule and a notice-and-comment period, which could take years.
- Proposed Rules and Guidance: Provisions still in the proposed stage or outlined in guidance documents are more vulnerable to changes or revocation. This includes aspects like the Energy Communities and Domestic Content guidance, which are critical to the industry.
- Congressional Review Act (CRA): The CRA allows Congress to overturn federal regulations issued by government agencies. However, its application is limited, and historically, it hasn’t been used to target tax rules.
SEIA reassured members that despite potential challenges, the statutory foundation of the IRA provides a strong backstop. Projects initiated under existing rules are generally protected, and any changes would likely not be retroactively applied.
Trade Policies and Potential Actions
Trade policy is another area where the new administration could significantly impact the solar industry. Potential actions discussed include:
- Increased Tariffs on Imports: There is speculation about imposing a 60% import duty on goods from China and a 20% duty on imports from all countries.
- Revoking Normal Trade Relations with China: This would subject Chinese imports to higher tariff rates, similar to those imposed on countries like Cuba and North Korea.
- Section 232 Actions: Potentially rolling back exemptions on steel and aluminum tariffs and initiating new investigations into products like polysilicon.
- Bulk Power System Executive Order: Revisiting the prohibition on importing certain power system equipment due to cybersecurity and national security concerns.
- USMCA Renegotiations: Exploring changes to the United States-Mexico-Canada Agreement, which could affect supply chains and trade relations.
SEIA emphasized the importance of working collaboratively with the administration, focusing on shared goals like domestic manufacturing growth, job creation, and supply chain resilience.
Call to Action: Industry Engagement is Crucial
A significant portion of the briefing was dedicated to mobilizing industry members to actively participate in advocacy efforts. SEIA called on members to:
- Share Success Stories: Highlight the positive impacts of the IRA on job creation and economic development in their communities.
- Engage with Lawmakers: Participate in video calls, meetings, and lobbying days to educate new and returning members of Congress about the industry’s contributions.
- Sign On to Industry Letters: Join collective efforts to communicate the industry’s positions to policymakers effectively.
By demonstrating the tangible benefits of the solar industry, SEIA aims to build a strong coalition of support that transcends partisan lines.
Conclusion: Navigating the Path Forward
The 2024 elections present both challenges and opportunities for the solar industry. While there is potential for policy shifts that could impact energy credits, trade relations, and regulatory guidance, proactive engagement and advocacy can help mitigate risks.
SEIA remains committed to defending the progress made under the IRA and working collaboratively with policymakers to ensure a stable and prosperous future for the solar industry. Active participation from industry members will be vital in shaping policies that support continued growth and innovation.
About SEIA
The Solar Energy Industries Association (SEIA) is the national trade association for the U.S. solar industry. SEIA works to build a strong solar industry to power America through advocacy and education.
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We recently attended the webinar hosted by SEIA where Abby Hopper and her team discussed 2024 elections impacting the solar industry. From potential changes to energy credits under the Inflation Reduction Act to shifts in trade policies, the new political landscape presents both challenges and opportunities.
Key takeaways:
- Defense of Energy Credits: The importance of preserving the IRA’s energy credits and how industry advocacy is crucial.
- Trade Policy Changes: Potential for increased tariffs and renegotiations affecting supply chains.
- Call to Action: Industry members need to share success stories and engage with policymakers to highlight the positive impact of solar on jobs and the economy.
Let’s work together to ensure a bright future for solar energy. Read our full analysis on the implications of the election and how you can get involved.
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