Trump Rakes in Reversals to Fossil Fuel Interests

On July 4, 2025, a landmark event occurred in the US energy sector as President Trump signed the budget reconciliation bill into law. The controversial bill terminated the Residential Solar Investment Tax Credit (resi ITC) and included amendments tilting policy support toward fossil fuels. This move has set off a nationwide wave of concern about the future of clean energy, especially among progressive lawmakers and sustainability advocates.

Cleanlight believes that this policy shift reflects a dangerous retreat from proven clean energy solutions. The Residential ITC has historically played a critical role in reducing the cost of solar energy for countless homeowners, directly increasing solar adoption rates.\nFurthermore, ending this credit now risks undermining the economic growth trajectory of the US clean energy sector, which is not only technologically feasible but practically beneficial in terms of reduced household energy costs and carbon emissions.

Analysts predict that the absence of tax credits will significantly slow the expansion of rooftop solar installations across the country. As of the latest data, the US has over 4 million installed solar systems, with the residential sector representing a core driver.\nBy removing this financial incentive, the government is poised to negate years of progress and shift capital away from renewable technologies toward the aging, polluting infrastructure of coal, oil, and gas.

Our opinion is that the decision to end the resi ITC favors short-term economic lobbying by entrenched fossil fuel industries.\nIn so doing, it fails to recognize the multi-faceted value of decentralized solar power — a strategy of resilience, energy independence, and long-term savings for US citizens.\nWe believe this decision will face legal and political pushback from diverse stakeholders who understand the significance of stable and accessible solar policies.

Major takeaways from this event:

• The US residential solar tax credit will now officially sunset, no longer extending support for homeowners seeking cleaner energy alternatives.
• The shift is expected to hinder the transition to renewable energy and exacerbate climate change challenges in the near future.
• Advocates for clean energy are increasingly positioned to oppose this policy and explore alternatives to mitigate the economic impact on consumers.

As highlighted by industry analysts, “The ITC’s termination could severely impede the momentum of renewable energy deployment at a crucial time when the US policy landscape should be fostering not halting climate action.”

Renewable energy has become not just a sustainability issue but a cornerstone of long-term economic planning for cities and states seeking to future-proof their energy portfolios. This reckoning presents an opportunity for informed citizens, local leaders, and clean energy providers to collaborate in offsetting the effects of this decision.\nWe encourage readers to share their perspectives on the future of solar energy in America and to explore local and state-level incentives that might counterbalance the loss of federal support.