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| SEIA |
Clean energy sector warns of factory closures and stalled innovation if climate law incentives are slashed
Legislation advanced by House Republicans could jeopardize nearly 300,000 solar and energy storage jobs and force the closure of up to 300 U.S. factories, according to a stark warning issued Monday by the Solar Energy Industries Association (SEIA).
The proposal, which targets key clean energy tax credits in the Inflation Reduction Act (IRA), aims to accelerate their phase-out and impose restrictions on Chinese-made components. If enacted, SEIA estimates the bill would eliminate $220 billion in solar and storage investments by 2030.
“If this proposal becomes law,” said SEIA President Abigail Ross Hopper, “nearly 300 U.S. factories—mostly in red states—could close or never open, and we simply won’t have the energy we need to power American innovation in AI and data centers.”
The analysis comes amid intense lobbying to preserve climate-friendly incentives introduced under President Joe Biden’s signature legislation. These include subsidies for solar, wind, hydrogen, and storage projects, many of which are located in Republican-led states that backed former President Donald Trump in 2020.
SEIA data shows that under current policies, solar and storage are projected to make up 73% of new U.S. electric capacity between 2025 and 2030, underscoring the sector’s pivotal role in meeting America’s growing electricity demands—particularly from AI-driven data centers and the digital economy.
The proposed cuts risk halting clean energy momentum at a time when global competition in renewables is intensifying, and U.S. utilities are shifting away from fossil fuels.
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