Back To The Basics. Solar has grown so much and the costs are down, why does it still need subsidies? Is literally the oldest, and most idiotic, argument in the playbook. My first solar project that I sold got an ITC worth nearly $3 per watt. Today, the taxpayer provides a tax credit for projects that is far below that. Meanwhile, oil and gas wells get credits and depreciation that has increased over time since the price of the commodity has increased. Oil and gas also get to offset active income which solar does not get to benefit from.

Good For Consumers. Solar will still get built but the costs will hurt businesses and consumers, driving up the cost of electricity for the overall economy to operate. If the government were concerned about lowering the cost of the credit it could look at how to lower the input capex costs burdened by duties and tariffs or even increase domestic manufacturing credits so that manufacturers produced goods with lower costs to the projects claiming the ITC.

DOGE Chimes In. On his last day at DOGE, Elon Musk agrees with me and his view from the past decade, which is if we want a level playing field for energy, it isn’t just about cutting solar credits but all energy tax benefits that far outweigh the cost of solar and underwhelm the comparable value given solar’s position to generate the energy needed for American Energy Dominance.

Smarter Power Electronics. Whether it’s the grid in the US or more recently in Spain, we have to make our power electronics smarter. Inverters can be a more valuable tool to grid operators with ride through capabilities and energy storage with advanced energy management systems (EMS) are a critical damper to grids that need that additional operational intelligence. As a market, especially asset owners, I would urge all you to investigate the reality of enhancing your capabilities with an EMS swap for your storage assets to increase availability and grid value.

• Politico: Musk, Tesla blast GOP plans to end clean energy tax credits in megabill
• Utility Dive: Transformer, breaker backlogs persist, despite reshoring progress
• Bloomberg: Spain Blackout Blame Game Heats Up as Iberdrola Points to Grid
• Axios: More climate tech projects are dying on the vine
• Reuters: Record US clean power run rolls on through May
• PV-Tech: The hidden digital highways threatening critical solar PV infrastructure
• Energy Storage News: Republican Senator praises energy tax credits during visit to Fluence factory in Utah
• PV-Magazine: Why Pennsylvania’s efforts to legalize community solar might make a breakthrough 

Opinion

• Canary Media: Why the solar industry is counting Ohio’s newest energy law as a win

Best, Yann