🌎 Energy war ignites on Capitol Hill—Senate tax bill slams solar and wind with a ‘bad deal’

🕒 Last updated on July 3, 2025

The U.S. Senate passed a tax-and-spending bill that still hits the solar and wind industry hard, even with some late changes. While lawmakers dropped a proposed tax on certain renewable projects, much of the damage remains. The bill weakens key federal incentives that have powered the clean energy boom over the past few years.

Senate Bill Keeps Clean Energy Under Pressure

Developers now have until mid-2026 to start projects and five years to receive full tax credits. But even with this timeline, many in the industry say the changes are a setback. Previous drafts had proposed harsher cuts, but the current version still reduces confidence in clean energy investment.

Stock prices for solar companies recovered slightly, but industry leaders say that doesn’t reflect the long-term damage. The bill fails to protect many projects already underway and leaves developers struggling to plan ahead.

House Republicans Aim to Cut Even More

The battle isn’t over. The bill now heads to the House of Representatives, where conservatives want to go further. The House version passed earlier this year slashed key clean energy credits aggressively. Now, those same lawmakers are pushing to restore those deeper cuts.

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One leading voice from Texas called the Senate’s softer approach a “deal killer.” He and others want to speed up the end of wind and solar support. This means the final bill could be even more harmful than the Senate version.

Clean energy developers fear the final result could strip away nearly all the financial tools they rely on. That would place the solar and wind sectors at serious risk, just as electricity demand is rising sharply across the country.

American Manufacturers Feel Betrayed

The Senate bill also removed a proposed excise tax on projects using Chinese-made equipment. That decision helped some developers avoid higher costs—but left American manufacturers furious. They had built factories in the U.S. expecting the law to support domestic content.

Now, those manufacturers feel abandoned. Without the tax, there’s no penalty for using cheaper Chinese products. This opens the door to a new wave of low-cost imports and undercuts U.S. solar factories.

Executives say the move threatens thousands of American jobs. After years of reshoring production, the clean energy manufacturing base feels exposed again. The decision removes the incentive to buy U.S.-made components, making it harder for local factories to survive.

Industry Warns of Higher Bills and Job Losses

Despite minor improvements, clean energy leaders warn that the Senate-passed bill still deals a major blow. Projects already under construction may lose financial backing. Long-term investments could vanish. Companies say the uncertainty is damaging project timelines, hiring plans, and energy planning across the board.

Without strong federal support, developers expect fewer new wind farms and solar installations. That could raise electricity costs for families and slow down efforts to modernize the power grid.

Industry groups say the bill puts America’s clean energy future at risk. They warn of lost jobs, factory shutdowns, and a weaker energy system. The bill may no longer be a worst-case scenario—but it is still deeply harmful.

The solar and wind industries remain shaken. They face uncertainty from shifting policies and ongoing political fights. While some damage was reduced in the Senate, the road ahead looks rougher than ever.