Solar Power in 2025: Implementing Solar at the Right Time
With 2025 being the first year of a new presidential administration, there is no shortage of questions being asked by Americans. From “when will the price of eggs go down?” to “will my Social Security be there when I need it?” every week there seems to be a new topic of concern.
With spring mere weeks away, one of the next questions to be asked will no doubt be – “what will happen to solar power in 2025?”
Where Does the Trump Administration Stand on Solar Power in 2025?
In his previous term as U.S. president, Donald Trump aligned himself with the fossil fuel industry, so it should come as no surprise that this is where his alliances are in his second term. In fact, as of February 2025, the Trump administration has adopted a policy framework that prioritizes fossil fuel energy sources over renewable energy, including solar power. This shift is evident through several executive actions and policy changes that have significant implications for the solar industry.
Executive Actions Impacting Solar Energy
In January 2025, President Trump declared a national energy emergency, issuing an executive order titled “Unleashing American Energy.” This order emphasized increasing domestic energy production, particularly from fossil fuels such as oil, natural gas, and coal, while notably excluding wind and solar energy from its definition of essential energy resources.
Concurrently, the Department of the Interior implemented a 60-day suspension on authorizations for renewable energy projects on federal lands and waters. This suspension affects leases, rights of way, and other agreements necessary for the development of solar and wind projects, effectively stalling new initiatives in these sectors.
Freezing of Clean Energy Funding
The administration has also paused federal funding allocated for clean energy projects. This includes a halt on the $7 billion Solar for All program, which aimed to expand solar energy access to low-income communities. The funding freeze has disrupted numerous solar initiatives, particularly in states like Indiana, where local projects depended heavily on federal support.
What Is the Solar Industry’s Response and Market Implications?
In response to the administration’s policies, some energy companies are reevaluating their positions in the U.S. renewable market. For instance, National Grid sold its U.S. renewable energy assets, including solar installations, to Brookfield Asset Management for $1.7 billion. This move reflects a strategic shift, possibly influenced by the current policy environment favoring fossil fuels.
Despite federal policy shifts, however; there is a growing movement among conservative environmental groups advocating for a more diversified energy approach. Organizations like the American Conservation Coalition support the integration of renewable energy sources, including solar, alongside traditional energy forms. They argue that environmental conservation and economic growth can coexist, suggesting potential for bipartisan support for renewable energy initiatives.
What Does This All Mean for Homeowners Interested in Residential Solar?
For the American homeowner, it is important to understand that while these policies will certainly present challenges, ongoing advocacy from environmental groups and market dynamics may still have influence on the future trajectory of solar energy in the United States.
For instance, one of the most exciting aspects of the solar industry is the constant innovation. In 2025, we can expect even more efficient solar panels with higher energy conversion rates. Researchers are developing next-generation photovoltaic cells, such as perovskite-silicon tandem cells, which could significantly increase the amount of electricity generated from sunlight. Additionally, solar panel designs are becoming more lightweight and adaptable, allowing for easier installation on various surfaces.
Battery storage technology is also improving, enabling homeowners to store excess energy for use during cloudy days or nighttime. Innovations like solid-state batteries promise better energy density, longer lifespan, and faster charging times, enhancing the overall efficiency and reliability of solar power systems. And according to industry experts, 2025 could also see further price reductions in both solar panels and battery storage. As production processes become more efficient, the upfront investment in solar systems is becoming more affordable for a wider range of consumers.
The U.S. federal solar Investment Tax Credit (ITC) remains a key driver for solar adoption. Although it is set to decrease in the coming years, homeowners who invest in solar in 2025 can still benefit from substantial tax credits.
Is 2025 the Right Time to Go Solar?
With 2025 being the first year in Donald Trump’s second presidential term, who knows what he will have in mind for solar over the course of his remaining three years? We don’t want to sound the alarm, but if you are thinking about adding solar panels to your home, then this is most likely the best time to do it.
Of course, it is only a good idea to go solar in 2025 if it makes sense for you financially. Consulting with a reputable solar provider will help you understand your options, so you can make an informed decision. If you can act in 2025, then you will not only secure the financial benefits of solar this year, but also contribute to a more sustainable future.
The future of solar power is bright, and for many homeowners, there’s no better time than now to harness the sun’s energy.