Solar Policy Update:

As the solar industry continues to expand, February 2025 has been a pivotal month for policy changes, regulatory decisions, and legislative updates. From tax credit finalizations to international trade disputes, here’s a roundup of the most impactful solar-related news shaping the future of renewable energy in the United States.

Treasury Finalizes Rules for Clean Energy Tax Credits

Washington, D.C. – The U.S. Department of the Treasury has released final rules for the 48E Clean Electricity Investment Credit. Previously limited to solar and wind energy, this credit now extends to other zero-emission technologies such as hydropower and geothermal energy. This expansion ensures that a broader range of clean energy projects can benefit from much-needed financial support, further diversifying the U.S. energy grid.

Finalized IRA Low-Income Bonus Credit Rules Expand Eligibility

Washington, D.C. – The Treasury Department also announced its final rules for the IRA low-income bonus credit program. These new guidelines broaden the list of eligible technologies and expand participation criteria, particularly for affordable housing initiatives. This move is expected to increase solar adoption in underserved communities, aligning with the Biden administration’s commitment to equitable clean energy access.

U.S. ITC Finds Harm in Chinese Active Anode Material Imports

Washington, D.C. – The U.S. International Trade Commission (ITC) has determined that Chinese imports of active anode materials (AAM) are harming the domestic industry. This preliminary decision in the antidumping and countervailing duty (AD/CVD) investigations could lead to tariffs or restrictions on these imports, potentially benefiting U.S. manufacturers of battery storage components.

Solar Panel Connector Patent Dispute Ends

Washington, D.C. – The ITC has terminated its Section 337 investigation between solar component manufacturers Shoals and Voltage. The investigation revolved around allegations that Voltage had imported infringing solar panel connectors and wire harnesses. The ITC’s ruling in favor of Voltage means that the company can continue importing and distributing its products without penalty.

Five Solar Companies Added to UFLPA Banned Entity List

Washington, D.C. – The Department of Homeland Security (DHS) has added 37 entities to the Uyghur Forced Labor Prevention Act (UFLPA) banned entity list, including five companies connected to the solar supply chain. The UFLPA prohibits the importation of goods from China’s Xinjiang region, where forced labor concerns persist. This latest update reinforces the U.S. government’s commitment to ethical sourcing within the solar industry.

European Investigation Clears JA Solar Subsidiary

Washington, D.C. – Following an investigation by European solar supply chain experts, Donghai JA Solar, a subsidiary recently placed on the UFLPA list, has been cleared of any wrongdoing. The investigation found that the company ceased production efforts in 2018, prompting a European board to lift JA Solar’s temporary membership suspension.

Treasury Provides More Incentives for American-Made Solar Wafers

Washington, D.C. – The Treasury Department and IRS have updated domestic content bonus guidance under the IRA’s 45X production tax credit. Developers now have additional incentives to use domestically produced wafers in solar cells, further strengthening the American solar manufacturing sector.

Attorneys General Urge Congress to Protect IRA Investments

Washington, D.C. – A coalition of 17 state attorneys general, led by Massachusetts Attorney General Andrea Joy Campbell, has sent a letter to Congress advocating for the protection of the Inflation Reduction Act (IRA). The AGs argue that the IRA has provided critical investments in clean energy across red and blue states alike and must be preserved.

Trump Administration Initiates Review of IRA Provisions

Washington, D.C. – On his first day back in office, President Donald Trump ordered a 90-day review and freeze of funds related to the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act. While this review impacts discretionary spending, legal experts confirm that IRA tax credits remain protected and cannot be rescinded by executive order.

Dept. of Labor Approves Solar Apprenticeship Guidelines

Washington, D.C. – The Interstate Renewable Energy Council (IREC) and the Solar Energy Industries Association (SEIA) have received official approval from the Department of Labor for national apprenticeship guidelines in the solar industry. These guidelines offer a standardized framework for workforce training, supporting the growth of a skilled solar workforce nationwide.

Connecticut Expands Incentives for Commercial & Industrial Energy Storage

Hartford, Connecticut – The Connecticut Public Utilities Regulatory Authority has announced updates to its Energy Storage Solutions program. The changes include opening a third tranche of commercial and industrial incentives and reallocating 140 MW of capacity from the residential sector to match the growing demand for business-scale storage solutions.

New Massachusetts Bills Support Distributed Solar Growth

Boston, Massachusetts – Massachusetts lawmakers have introduced two bills aimed at stimulating local solar development. The MOSAIC Act and Facilitating DERs Act focus on improving project permitting, modernizing the grid, and increasing access to distributed energy resources. If passed, these bills could significantly accelerate solar adoption in the state.

Washington State Moves Toward Community Solar Expansion

Olympia, Washington – Two Democratic legislators in Washington State have introduced the Fair Access to Community Solar Act. This proposed legislation would establish a state-wide community solar program, requiring at least 50% of its capacity to serve residential subscribers and reserving 30% for low-income households and service providers.

Final Thoughts

February 2025 has brought a flurry of regulatory changes, legislative proposals, and trade actions that could significantly impact the U.S. solar industry. From expanded tax credits to new domestic manufacturing incentives and policy debates on the IRA’s future, stakeholders must remain vigilant in navigating these evolving policies. Stay tuned for more updates as the landscape continues to shift in the months ahead.