Republican Tax Bill Threatens Thousands of Solar Jobs as Clean Energy Leaders Warn of Industry Collapse

As Congress pushes forward with a large Republican-led tax and spending cut bill, leaders in the clean energy sector are raising alarms about its potential consequences. Will Etheridge, CEO of Southern Energy Management in Raleigh, North Carolina, warned his 190 employees that deep cuts to clean energy tax credits—particularly those supporting residential solar—could lead to layoffs within his company. Etheridge emphasized the need for transparency, stating that the bill’s passage would likely mean job losses, a concern echoed by other industry leaders and analysts who predict major setbacks in renewable energy growth.

Eliminating Solar Tax Credit Threatens Homeowners, Small Installers, and Statewide Clean Energy Investments

One of the bill’s most controversial provisions is the elimination of the 30% tax credit for residential rooftop solar installations, which had been extended into the next decade under the Biden administration’s Inflation Reduction Act. President Donald Trump, backing the bill, derided such incentives as a “green new scam,” aligning the cuts with his broader criticism of global climate initiatives. Industry experts warn this change will disproportionately affect homeowners and small installers, with E2 executive director Bob Keefe stating the residential solar market is at risk of being “absolutely creamed.”

The renewable energy sector has invested over $20 billion in North Carolina alone, with many businesses now lobbying lawmakers for relief. Etheridge was among those pressing Republican Senator Thom Tillis to oppose the bill. While Tillis ultimately voted against it, he also announced he wouldn’t seek reelection after Trump indicated support for a potential primary challenger. The pressure underscores the political divisions and influence Trump continues to wield, even as his proposed policies threaten job losses and economic disruption in a rapidly growing sector.

Small Solar Businesses Face Layoffs as Tax Cuts Favor Wealthier, Commercial Projects

For business owners like Etheridge and Karl Stupka of NC Solar Now, the legislation is deeply personal and economically perilous. Etheridge expects to lay off more than 50 employees and described the tax credit removal as a “bait and switch” that undermines the financial foundation of companies built on clean energy incentives.

Stupka, whose business is 85% residential, anticipates cutting half of his 100-person staff. Both entrepreneurs lament that the bill favors large commercial projects over everyday homeowners, effectively redirecting benefits to wealthier interests.

Experts have already observed a slowdown in the sector, with $14 billion in clean energy investments delayed or canceled nationwide this year. While the Senate version of the bill removed certain taxes and offered a gradual phase-out for utility-scale projects, it did little to protect the residential market.

Critics argue the changes will send shockwaves through the industry, leading to widespread layoffs not just in installation companies, but across supply chains and local economies. The bill’s passage, they warn, could stifle innovation and derail national progress toward clean energy goals.