Arizona consistently averages more sunny days than any other U.S. state, and using the power of the sun has turned into big business.
Solar businesses have benefitted from government tax credits to grow their customer base, but with Republicans winning back Congress and the White House, some of those programs could be put in jeopardy.
While on the campaign trail in New York in September, now President-elect Trump said he wants to “rescind all unspent funds under the misnamed Inflation Reduction Act."
The comment and overall sentiment from Republicans that fossil fuel production needs to be prioritized for energy needs has the Arizona Solar Energy Industries Association executive director Autumn Johnson watching D.C. closely.
“It is really hard if you’re a business, whether you’re a utility or a solar company, to have this volleying of policy back and forth every two to four years," Johnson said.
The biggest boost for solar businesses coming from D.C. was the passage of the "Inflation Reduction Act" (IRA). The bill guaranteed tax credits for consumers investing in solar panels for a decade.
"That certainty is critical," Johnson said.
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But not one Republican voted for the IRA. Many cited the bill’s over-$700 billion price tag as too high amid high inflation.
President-elect Trump also wants to implement tariffs, which solar business owners like John Mitman say could increase the cost of production for solar panels.
“I think tariffs would really disrupt the market and limit our ability to invest in renewables," Mitman said.
Repealing the Inflation Reduction Act would require a majority vote in the House and Senate, and the president’s signature. Even though Republicans have the majority in Congress, and President-elect Trump heading back to the White House, a full repeal could be difficult.
In August, 18 House Republicans, including Arizona Congressman Juan Ciscomani, cautioned Speaker of the House Mike Johnson against a full repeal of the IRA.
Despite the talk about repealing parts of the IRA, Mitman still believes the outlook for the solar industry in Arizona is a positive one.
“I think the reality is everyone from a business standpoint understands what is at risk there. I don’t have major confidence any of those major changes would make it through," Mitman said.
