Solar industry unlikely to change much in Trump’s America

President-elect Trump’s comments over the course of his campaign indicated firm support for coal and gas energy while painting renewable energy sources, especially wind and solar, as utterly inefficient. With such strong opinions against non-fossil power generation coming from top leadership, anyone in this sector cannot help but be concerned. 

However, before we spell doom to the future of solar energy in America, let us look at some facts on the ground.

The current state of solar energy production

The production of solar energy in America has grown significantly since 2006. This is mainly attributable to the solar investment tax credit, which is expected to be in play until the end of 2023. 

What does it mean? In summary, the ITC is a government tax relief incentive given to developers who want to construct solar-powered buildings. The relief is equivalent to 30% percent of the cost of equipment. This applies to both commercial and residential projects. The percentage is expected to drop to 26 percent and 22 percent in 2020 and 2021, respectively. 

It is important to note the ITC policy has achieved the following:

• A 70 percent reduction in the price of solar power installations
• A 60 percent annual growth rate in the sector
• Employed over 200,000 Americans 
• Reduced the cost of living for individuals
• Reduced the cost of doing business for commercial entities
• Created a ready market for solar energy equipment manufacturers

All things constant, for the next seven years, which is almost equivalent to a president’s two terms in office, the sector is expected to continue to grow.  According to the Solar Energy Industries Association, if the current growth is sustained, the sector will hit a 100 GW mark of installed solar electric capacity. That indicates a bright future for the industry.

Possible Impediments to Solar Energy Growth

Legislation such as the Clean Air Act passed in 1955 favor renewable energy production as it comes with no pollutant emissions. This is not the case with coal and gas. To expand the use of coal and gas, Trump’s administration will have to undo existing legislation that for decades sidelined the massive exploitation of fossil fuels as energy sources. 

They may also target ITC policy that has fueled the exponential growth of solar energy. The argument is to have a level ground for all players in the energy sector to compete without any legal favoritism. If this were to happen, the growth of the solar energy sector would drastically go down as the cost of installation rose significantly.

What is at stake?

If the president chooses this path, a number of things are likely to happen.

• Carbon dioxide emissions will increase as well as levels of air pollution. 
• The environment will be impacted by the coal and gas mining activities. 
• The jobs created in the solar sector are likely to be lost.
• Citizens will be forced to pay more for fossil power while they enjoy free, clean solar electricity.
• Legal battles against the government will ensue.

Final verdict 

Since state governments enact individual laws that dictate sources of energy, it may not be easy to harmonize laws across the country. But the strides made over the past ten years in the field of solar energy have positively impacted many American lives. Abolishing them overnight is likely to attract a public outcry. 

The solar industry may not grow as quickly under Trump as it has over the last few years. But it will remain impractical to shut down solar operations completely.

Adam Hammill is the president/CEO of ALIVE Industries.

The views expressed by contributors are their own and are not the views of The Hill.