· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:
🗞️ Driving the news: Federal rooftop solar tax credits in the U.S.—worth an average of $8,000 per home—are set to expire on December 31, under President Trump’s One Big Beautiful Bill
• While the end of these incentives is expected to cause a short-term decline in installations, experts argue that phasing out subsidies could ultimately improve the solar industry by exposing inefficiencies, lowering long-term costs, and driving better business practices
🔭 The context: For years, generous tax credits helped boost rooftop solar in the U.S., but the cost of installing panels remains two to three times higher than in other developed countries
• Analysts point to “soft costs”—such as sales commissions, financing fees, permitting delays, and opaque pricing—as the primary culprits
• Some industry players argue that subsidies have helped mask these structural problems and allowed predatory sales tactics to persist
🌍 Why it matters for the planet: The U.S. solar sector needs to scale rapidly to support decarbonisation goals
• If ending subsidies leads to increased transparency, reduced soft costs, and more competitive pricing, solar could become accessible to more households
• However, abrupt subsidy cuts risk temporarily slowing adoption and increasing emissions
• A more efficient, subsidy-free market could accelerate growth over the long term while reducing consumer barriers
⏭️ What's next: Analysts expect a near-term slowdown, but forecast a market rebound by 2028, with home solar installations eventually surpassing levels projected under a subsidy-driven model
• Innovations like SolarAPP+—a streamlined permitting platform supported by the U.S. Energy Department—could help reduce delays and costs
• As solar hardware prices continue to fall, pressure will mount on the industry to cut non-hardware costs and deliver simpler, more transparent customer experiences
💬 One quote: “Over the long term, this will be a good thing for the industry.” – Michelle Davis, Head of Global Solar, Wood Mackenzie
📈 One stat: Soft costs—including permitting, marketing, and financing—now account for 65% of the total cost of residential solar in the U.S.
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