New Energy

Tax Bill to End US Reliance on China Solar Will Slow Green Shift

Workers at the Illuminate solar plant in Pataskala, Ohio.

Photographer: Maddie McGarvey/Bloomberg

A massive tax-and-spending bill passed by the House of Representatives last week marks the culmination of nearly two decades of efforts to decisively wean the US off cheap Chinese solar panels.

The measure would clamp down on energy tax credits created or expanded by the 2022 Inflation Reduction Act by imposing a slew of new restrictions, including earlier expiration dates and mandates that projects be free of any connection to China and other so-called “foreign entities of concern.” Relying on imported materials or components, or having ownership tied to China, could be enough to block project developers from receiving those credits.