Dear Senators,
We are writing to express our deep concern about the provisions in the current Budget Reconciliation Bill, particularly as they pertain to the renewable energy sector. As the United States faces increasing energy demand and rising energy costs, it is crucial that we continue to foster a thriving, sustainable energy market. The bill, as it stands, threatens to disrupt the progress we have made in advancing renewable energy, jeopardizing job creation, economic growth, and the nation’s ability to maintain energy dominance.
The Need for More Clean Energy
The demand for energy in the U.S. is expected to surge by 35-50% over the next few decades, according to a recent report by S&P Global Commodity Insights. This sharp increase is driven by advancements in artificial intelligence, the growing need for data centers, and the onshoring of U.S. manufacturing. We need to act now to secure clean, affordable, and reliable energy sources to meet these growing demands. Fortunately, a broad portfolio of renewable energy solutions—such as solar, wind, and energy storage—already exists to address this need. According to the Solar Energy Industries Association (SEIA), the United States needs to add 206.5 GW of new energy capacity by 2030. Solar is capable of supplying 73% of those capacity additions. That massive gap simply cannot be filled with natural gas or other fossil fuel power plants.
Without solar and storage, America will have an energy shortage that raises utility bills and slows economic growth. Clean Energy Buyers Association (NERA/CEBA) confirms that dismantling key portions of the IRA will lead to a national average 7% electricity price increase for households, and a 10% increase for businesses as early as 2026.
American Energy Dominance and the Role of Solar
Among these renewable energy solutions, solar energy stands out as the fastest-growing and most affordable energy source available. In 2024 alone, solar, wind, and energy storage projects added 50 gigawatts (GW) of capacity to the U.S. grid, generating approximately $400 billion in domestic revenue. This growth is not just beneficial for energy production—it has also been shown to help reduce electricity rates and improve the reliability of our power grid.
In addition, renewable energy projects, particularly solar, create substantial local economic benefits. For every 1 MW of solar projects, an additional 25 full-time jobs are created. These jobs support local trades and provide economic opportunities in both urban and rural areas. The potential of renewable energy to continue this trend is immense, yet the current Budget Reconciliation Bill threatens to undermine this growth.
Disruptive Impacts of the Current Bill
The provisions within the current version of the Budget Reconciliation Bill are dangerously disruptive to the renewable energy sector. As noted by Advanced Energy United President Heather O'Neill, the bill would “dismantle bipartisan, long-standing tax policy that has catalyzed billions in private investment” and has driven an American manufacturing renaissance. If enacted as written, this bill could increase electricity prices, eliminate tens of thousands of jobs, and cede energy dominance to foreign competitors, particularly China.
The bill’s proposed changes are seismic in nature. Abigail Ross Hopper, President and CEO of the Solar Energy Industries Association (SEIA), has rightly stated that this legislation would “upend an economic boom” that has benefited millions of American workers and families. It would also end billions of dollars in investments aimed at supporting American-made solar components—particularly in rural and Republican-led states where these projects have created new opportunities.
The Importance of Long-Term, Reliable Tax Policy
One of the most critical aspects of the renewable energy industry’s growth has been the stability provided by clear, predictable, and long-term tax policies. These policies have unlocked billions of dollars in private investment and have helped create millions of good-paying American jobs. Companies in the renewable energy space rely on these tax incentives for capital allocation, project planning, and development. The premature phase-out of tax credits, as proposed in the current bill, would destabilize the industry, putting at risk the very investments that have powered our energy revolution.
Furthermore, the end of tax credit transferability—one of the bill's provisions—would be disastrous for small to midsize developers who rely on tax equity partners to finance projects. Small businesses are the backbone of America’s economy, and the solar industry is no exception. The bill's 60-day provision to start construction in order to qualify for tax credits is unrealistic and would leave many small developers unable to meet the deadline. This would create severe disruptions across the industry, halting progress on renewable energy projects and threatening job creation.
Call to Action
We strongly urge you to take immediate action to amend the Budget Reconciliation Bill to protect the future of renewable energy in the United States. It is critical that any legislation enacted ensures the continued reliability of long-term investments in renewable energy projects, protects the creation of good-paying jobs, fosters domestic manufacturing, and prevents consumers from facing higher energy rates.
The renewable energy sector has the potential to play a pivotal role in America’s energy future. By making the necessary adjustments to the Budget Reconciliation Bill, you can help secure the nation’s energy dominance, protect American jobs, and ensure that we meet the growing energy demands of the coming decades.
Thank you for your attention to this crucial matter. We trust that you will consider these concerns and work towards a solution that strengthens our renewable energy sector, protects American workers, and supports the long-term health of our economy.
Sincerely,
Norwich Technologies Staff