After Trump won the US presidential election, his potential policy impact on new energy industries such as photovoltaics has been closely monitored.
On Thursday Eastern Time, the CEO of Sunrun, the largest household solar company in the United States, believes that even if Trump wins the US election, it will be difficult to fully repeal the Inflation Reduction Act, which means that the Trump administration may not hinder the development of rooftop solar and battery systems in the United States.
Is the Inflation Reduction Act in jeopardy?
After Trump won the US presidential election this week, the US photovoltaic stocks have suffered a round of heavy blows. After the election results were announced on Wednesday Eastern Time, the US stock market Sunrun plummeted 29.63%, Enphase Energy plummeted 16.82%, First Solar fell 10.13%, JinkoSolar fell 14.31%, and Daquan New Energy fell 8.11%.
Due to Trump's consistent support for the traditional energy industry and skepticism towards the new energy industry, many investors are concerned that after Trump takes office, he may revoke the Biden administration's support and subsidy measures for new energy industries such as photovoltaics.
In 2022, US President Biden signed the Inflation Reduction Act, which plans to provide up to $369 billion in subsidies to support the clean energy industry, including domestic photovoltaic products.
However, Trump has frequently made statements such as abolishing the Inflation Reduction Act.
For example, Trump and his advisory team once called the Inflation Reduction Act a "harmful" legislation, stating that it hinders economic development. Trump has also threatened to revoke unused funds from the Inflation Reduction Act and cancel new energy tax credits on his first day in office once he returns to the White House.
However, Sunrun CEO Mary Powell stated in an interview that it is "highly unlikely" to completely repeal the Inflation Reduction Act and eliminate tax credits for industries such as photovoltaics.
"Americans want and need reliable and affordable energy, and the Inflation Reduction Act is actually promoting the economy of many states in the country, including many Republican leaning states."
Republican lawmakers will support the Inflation Reduction Act
In fact, if Trump really wants to repeal the Inflation Reduction Act, he will need the support of Congress.
However, as of now, most of the spending under the Inflation Reduction Act has gone to red states (traditionally Republican states) and swing states. For example, Texas has received $131 billion in subsidies under the Inflation Reduction Act, while Florida and Georgia have received $62 billion and $16 billion in subsidies, respectively.
In these states, many Republican leaders have stated that they will defend these projects - which will increase the difficulty for Trump to amend or repeal the Inflation Reduction Act.
Sunrun's Powell also stated that the rooftop solar industry has received bipartisan support in previous administrations, and the company itself is in a "very advantageous position" to become a market leader in home battery storage.