House Republicans passed a tax bill that terminates key clean energy credits, a development described as 'worse than feared' for the clean energy sector. The legislation ends tax credits for installers that lease equipment to customers, a model used by approximately 70% of the rooftop solar industry.
The bill also ends investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after December 31, 2028. These credits have been crucial for the expansion of utility-scale solar projects in the U.S.
This legislative action is seen as taking a 'sledgehammer' to the Inflation Reduction Act, with analysts stating that sales of inverters from companies like SolarEdge would take a hit from lower demand for rooftop solar. The changes made from previous proposals would advance by three years an end-date for technology-neutral clean electricity tax credits.
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