
Trump’s Executive Orders Shake Up US Energy Policy: Its Impact on Solar Industry
Jan 22
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In a series of executive orders signed shortly after his inauguration, US President Donald Trump unveiled significant changes to the nation’s energy policies, drawing attention to fossil fuels and signaling a rollback of renewable energy-focused legislation. These decisions are poised to reshape the trajectory of the US solar industry and the broader energy transition.
Trump Challenges the Inflation Reduction Act (IRA)
One of the most impactful moves is President Trump’s challenge to the Inflation Reduction Act (IRA), a landmark climate and economic bill from the Biden administration. The new executive order, titled “Unleashing American Energy,” calls for the revocation of certain provisions of the IRA, including the halting of fund disbursements tied to it and the Bipartisan Infrastructure Law (BIL). While the exact scope remains unclear, this signals an intent to roll back legislation that has been instrumental in advancing clean energy adoption.
The IRA has been pivotal in driving the expansion of solar energy and energy storage technologies in the US. Its potential repeal raises concerns across bipartisan lines, particularly in Republican-led states that have benefitted from manufacturing booms spurred by the legislation.
Focus on Fossil Fuels and “America First” Energy Policy
President Trump’s executive orders emphasize fossil fuel production, including plans to expand oil drilling in Alaska and increase natural gas exports. He also declared a national energy emergency, pledging to fill the country’s strategic oil reserves and review regulations that could burden domestic energy development, focusing on oil, natural gas, coal, and nuclear energy.
Additionally, Trump’s “America First” trade policy could affect the solar industry’s supply chain. The establishment of an “External Revenue Service” and the review of antidumping and countervailing duty (AD/CVD) laws aim to strengthen domestic manufacturing while reducing reliance on foreign solar components, particularly from China. These policies may, however, exacerbate supply chain challenges and increase costs for US solar manufacturers.
Withdrawal from the Paris Climate Agreement
In a move reminiscent of his first term, President Trump ordered the US to withdraw from the Paris Climate Agreement. The treaty, signed in 2016, aims to limit global warming to 2°C above pre-industrial levels through collective decarbonization efforts. Trump’s decision underscores a stark policy shift from the previous administration’s renewable energy commitments.
Solar Industry Resilience Amid Policy Shifts
Despite these policy changes, the US solar industry has historically demonstrated resilience. Corporate demand for solar power, driven by sustainability commitments and long-term power purchase agreements (PPAs), has remained a consistent growth driver. Abigail Ross Hopper, president of the Solar Energy Industries Association (SEIA), noted that the solar sector has grown by 128% under Trump’s previous term and remains a key contributor to the nation’s energy mix.
“Solar is now a $60 billion industry, adding more capacity to the grid than any other energy source. Continued growth in solar and energy storage is essential to achieving energy dominance and innovation,” Hopper said.
What Lies Ahead for US Energy Policy?
President Trump ’s policies mark a clear pivot from the renewable energy focus of the Biden administration, but the path forward remains uncertain. With bipartisan support for clean energy legislation and corporate demand for renewables, the solar industry may yet navigate these challenges and continue its growth.