In the flurry of Executive Orders signed by Donald Trump on January 20, one titled “Unleashing American Energy” (full text here) was included. The order sets forth a wide variety of actions and policy proposals, including ones that largely seek to promote fossil fuel extraction, use, and export and eliminate any regulation or policy that seeks to promote energy efficiency and deployment of renewable energy infrastructure.

Concerning solar, section 7 of the order states:

Terminating the Green New Deal. (a) All agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58), including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program, and shall review their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law and the policy outlined in section 2 of this order. Within 90 days of the date of this order, all agency heads shall submit a report to the Director of the NEC and Director of OMB that details the findings of this review, including recommendations to enhance their alignment with the policy outlined in section 2. A given agency shall disburse no funds identified in this subsection (a) until the Director of OMB and Assistant to the President for Economic Policy have determined that such disbursements are consistent with any review recommendations they have chosen to adopt.

The primary financial investment drivers for the solar industry are the various Investment Tax Credits (ITC) and accompanying accelerated depreciation rules. While ITCs are not explicitly mentioned in the order, it remains to be seen if administration officials will attempt to categorize them as “financial disbursements,” even though they are credits, and freeze their use. Until greater clarity on this matter is achieved, we anticipate that solar project investors will pause any investment commitments.

For the solar industry as a whole, it is unclear what effect this order will have on the construction of the many solar system component manufacturing plants in the US. Subsection (b) of Section 7 states that disbursement of Federal funds shall prioritize “…American workers and businesses…” and so any action to curtail these construction projects would be contrary to the order’s wording. Again, additional guidance and clarity are needed against the devastating economic effects on workers and economies in the localities where these plants are being built.

What can you do? Contact your senators and representatives and make precise the critical economic, grid stability, and energy security needs the solar industry provides. American energy and security must include all forms of energy production.