The Solar Energy Industries Association has released an analysis highlighting the potential negative economic consequences of the budget reconciliation bill currently being reviewed by Congress. The proposed legislation reduces incentives for solar power investment and adoption, including the Section 25D residential tax credit.

According to the association’s findings, the bill in its current form would result in the loss of nearly 300,000 existing and future jobs in the US. Additionally, the removal of incentives could lead to a loss of approximately $220 billion in investment in the sector by 2030. The group also warns of a potential energy shortage, suggesting that solar power is on track to account for around 73% of the 206.5 GW of new energy capacity required in the country by 2030.

SEIA President and CEO Abigail Ross Hopper stated, “Passing this bill would create a catastrophic energy shortfall, cede AI and tech leadership to China, and damage some of the most vital sectors of the U.S. economy.”

This reaction is typical of an industry facing threats from federal action. However, it appears to be the type of warning that may not have a significant impact on the current administration, particularly with regards to environmental and sustainability issues.