A teetering U.S. residential solar industry may now be on the brink of collapse. Faced by macroeconomic challenges and shifting sands of state and federal policies, an industry once defined by double-digit growth in installations is experiencing steep declines – and the latest draft of the One Big Beautiful Bill Act makes things far worse.
The latest draft of the bill is bad all-around for clean energy, but it is particularly damaging to residential solar, cutting federal tax credits far sooner than expected.
Residential solar installations declined 31% in 2024. Over the last year, industry titans like SunPower, Sunnova, and Mosaic Solar have filed for bankruptcy.
The industry historically has leaned on the value proposition of lowering customer electricity bills and providing predictable costs for the long-term. However, that value has been increasingly difficult to provide.
Not surprised, the several quotes I got to install them on my roof were crazy. Could have got a new roof like twice for the price of putting solar on top. And this was a couple years ago before all these new tariffs.
A 20 year break-even timeline isn't much of a value proposition.
The dirty secret of any home reno tax credit is that the industry gobbles them up with markups. The price ends up being exactly the same as it would be without the tax credit, so it’s a subsidy for uncompetitive installation companies rather than families who want to invest in green energy.
How much for the quoted systems? And what expected output? Genuinely curious