By creating the National Energy Dominance Council, imposing a moratorium on federal support for many renewable energy projects, supporting expanded oil and gas leasing and drilling, and lifting LNG export moratoriums — all under the banner of a “national energy emergency” — Trump is doubling down on fossil fuels. The message is clear: To meet rapidly rising electricity demand and lower costs, this administration is looking to oil and gas.
But that approach is bypassing the most obvious and ready solution we have — solar. Here’s why:
1. Solar is American.
Solar energy is generated right here at home — using a source that’s free, unlimited, and immune to global supply shocks. Domestic production has skyrocketed to meet demand, and the Inflation Reduction Act has supported an acceleration with tax credit bonuses for U.S. manufacturing.
2. Solar supports U.S. jobs.
The industry employs over 250,000 Americans, including 34,000 manufacturing jobs — a figure expected to double by 2033.
3. Solar is the cheapest.
We’ve covered this extensively, but solar is now the most cost-effective source of unsubsidized energy, with panel prices having steadily declined over decades.
4. Solar is the fastest source to add.
Solar (41%) and battery storage (40%) are the supermajority of the active interconnection queues across the country, with natural gas at just 3%. If you want more production to the grid sooner, solar is ready. Ramping up natural gas plants will take much longer.
“To get your hands on a gas turbine and to actually get it built across the market, you’re really looking at 2030, or later” with the next nuclear plant potentially in 2031 or 2032. This leaves solar as the primary near-term solution. Ketchum, who is uniquely qualified given NextEra has built the most gas-fired generation over the last two decades, said, “Renewables are ready to go right now because they’ve been up and running.”
If Trump’s true goal is U.S. energy dominance, his administration needs to support solar first by affirming the investment tax credits and benefits, reforming the interconnection process to speed up grid connections, and maintaining key elements of the Inflation Reduction Act, especially as it relates to credits and their transferability.
In March, 21 House Republicans signed a letter defending the IRA’s clean energy tax incentives, opposing efforts to repeal the legislation. As Rep. Andrew Garbarino (R-NY), who spearheaded the letter, put it: “We have 20-plus members saying, ‘Don’t just think you can repeal these things and have our support.’”
For commercial real estate owners, this is an encouraging signal: Support for solar remains bipartisan, and the underlying economics continue to drive adoption. Still, political uncertainty — especially around long-term incentives — can stall decision-making.
But savvy CRE owners aren’t waiting. They’re acting now to get their solar projects into safe harbor, locking in today’s tax credits and incentives to protect against potential policy shifts down the line.
There are three additional major factors that SolarKal sees as altering solar economics in 2025: higher electricity rates, tariffs, and domestic content manufacturing.
Driven by an explosion in demand and stable supply, the U.S. EIA is forecasting that wholesale power prices will rise by an average of 7% year over year — with spikes of 30% to 35% expected in California and the Southwest.
Historically, rates have risen just 2% to 3% annually. For property owners, higher electricity costs mean greater upside from solar since avoided utility spend is the primary driver of returns.
Solar project economics remain strong, but uncertainty is a bigger drag on the market than a known negative outcome. While the tariff environment has been volatile, there are a few clear impacts on solar.
Starting January 1, former President Biden’s administration increased tariffs on Chinese-made panels from 25% to 50%, and President Trump has since added 25% tariffs on imports from Cambodia, Malaysia, Thailand, and Vietnam, which have all been top sources of panels in the U.S. But since panels are only about 20% of the balance of system costs, the pricing impact to the overall system cost is limited, likely in the middle of the single-digits range.
Additional steel and aluminum tariffs would drag on carport economics, where about 40% of the cost structure is in the structural requirements.
Asset owners again would be wise to move earlier to lock in the best economics.
Despite policy noise, momentum in the solar industry is holding strong as we continue into 2025.
But the window to fully capitalize on today’s tax credits and incentives may not stay open forever — or at least not as wide open — and smart investors know timing is everything. In a shifting policy and pricing environment, trusted guidance makes all the difference. With the industry’s leading solar procurement platform and a track record of hundreds of successful projects, our team is ready to help you navigate what’s next and lock in long-term value.
Contact an advisor to get started — dominate your energy costs.
With 200-plus vendors, SolarKal’s marketplace offers real-time insight into industry trends. Backed by one of the most comprehensive solar datasets, it’s a clear window into market dynamics.
“Our RFPs are coming back unchanged,” says Josh Newell, SVP of Project Delivery. “Pricing for 1Q 2025 remains in line with 4Q 2024, and bid activity is strong. Developers are very actively bidding and there has been no sign of softening across our active project pipeline, despite the broader macroeconomic backdrop.”
— Josh Newell, SolarKal’s Senior Vice President of Project Delivery
That said, a few vendors are beginning to underwrite lease rates more conservatively — anchoring closer to the 30% base ITC — due to political uncertainty around incentive adders.
New York City’s emissions cap law is no longer on the horizon — it’s here. Buildings over 25,000 square feet must submit their first annual emissions report by May 1, 2025. Noncompliance can result in substantial fines.
Solar is emerging as a critical strategy for CRE owners to reduce emissions, offset Local Law 97 penalties, and enhance asset performance — especially for properties already facing retrofit challenges or rising operating costs.
The long-awaited update to the state’s SMART solar incentive program is on the way, with new rules expected to reshape project economics across Massachusetts.
One key detail: Projects already filed for interconnection are likely to receive priority under the updated program. Fortunately, for many of our clients, we moved early — submitting interconnection requests when the draft proposal emerged last year to help secure their spot in line.
As final program details take shape, timing and positioning will be everything.
Connect With an Expert
Dominate Your Energy Cost
Dominate Your Energy Cost
.png)
