WASHINGTON — As Republicans in Congress advance a sweeping tax and spending cut bill, the clean energy sector braces for significant impacts. Will Etheridge, CEO of Southern Energy Management in Raleigh, North Carolina, alerted his 190 employees to potential job losses due to deep cuts to clean energy tax credits.
“The changes would almost certainly include the loss of jobs on our team,” Etheridge wrote in a candid message. “I’m telling you that because you deserve transparency and the truth — even if that truth is uncomfortable.”
The bill, currently in the House, proposes to eliminate a 30% tax credit for rooftop residential solar by the end of the year. This credit, extended by the Biden administration’s Inflation Reduction Act, was intended to last into the next decade. Former President Donald Trump has criticized these clean energy tax credits as part of a “green new scam” that improperly supports the “globalist climate agenda.”
Industry Concerns and Economic Impact
Businesses and analysts warn that the GOP-backed bill could reverse growth in the clean energy sector and result in job losses. Bob Keefe, executive director of E2, a group advocating for pro-environment policies, expressed concern, stating, “The residential solar industry is going to be absolutely creamed by this.”
Etheridge, whose company specializes in solar panel installations and energy efficiency, has been vocal in lobbying for changes to the bill. Despite efforts, Republican U.S. Sen. Thom Tillis of North Carolina, who voted against the measure, has announced he will not seek reelection after Trump indicated support for a primary challenger.
Financial Implications for Businesses
Etheridge anticipates that losing the tax credit will force him to lay off 50 to 55 workers. He described the elimination of residential tax credits as a “bait and switch,” reflecting on his decision to invest in the business based on the stability these credits provided.
“I made a decision from being an employee to taking out a loan from my grandmother to buy into my business and put my house on the line,” Etheridge explained. Now, he must explore ways to diversify his business model.
“If you require a money-spigot from Washington to make your business viable, it probably shouldn’t have been in business in the first place,” said Adam Michel, director of tax policy studies at the Cato Institute.
Michel expressed skepticism that many clean energy companies would fail, suggesting instead that they would adjust to market conditions and that employees might find more stable jobs in other industries.
Broader Economic and Policy Context
Even before the bill’s debate, E2 experts noted that $14 billion in clean energy investments nationwide had been postponed or canceled this year. The Senate’s version of the bill, passed on Tuesday, removes a proposed tax on some wind and solar projects and allows utility-scale projects time to begin construction before phasing out credits.
Karl Stupka, president of NC Solar Now, criticized the bill for easing the impact on commercial projects while undermining residential tax credits. “They took it away from every average American normal person and gave it to the wealthier business owners,” he said.
Stupka predicts a rush to complete solar projects before the credit ends, expecting to lay off half his workforce, with additional job losses in related sectors. “It would cause a pretty severe shock wave,” he warned.
Future Prospects and Legislative Developments
The clean energy sector’s future now hinges on legislative negotiations and potential amendments to the bill. Industry leaders continue to advocate for policies that support sustainable growth and job creation, emphasizing the importance of stable incentives.
The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For comprehensive coverage of environmental issues, visit AP’s climate and environment hub.
