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Trump takes another shot at photovoltaics

Trump takes another shot at photovoltaics

March 25, 2025

Recently, US President Trump signed an executive order to cancel the decision of former President Biden's administration to include solar photovoltaic (PV) modules and electrolyzer production in the Defense Production Act (DPA).

 

The Defense Production Act gives the president the power to expand and accelerate the supply of materials and services in the domestic industrial base. In 2022, the Biden administration decided to include the production of solar photovoltaic modules, electrolyzers, etc. in the law to rapidly expand the manufacturing scale of domestic clean energy critical infrastructure. At that time, the Biden administration also allocated $500 million under the Inflation Reduction Act to specifically fund the production of these technologies. However, Trump canceled the relevant orders this time, giving the reason that these revocations are essential to advancing US policies, restoring the rationality of the federal government, and unleashing the potential of American citizens. But industry analysts believe that there may be more complex considerations behind this decision.

With the implementation of Trump's executive order, the manufacturing of key clean energy products such as solar photovoltaic modules and components, electrolyzers, etc. will no longer enjoy policy support from the Defense Production Act. In recent years, the US solar industry has developed rapidly. Data shows that in 2024, solar energy accounts for 81.5% of the new installed power generation capacity in the United States, far exceeding natural gas and nuclear energy. After being removed from the Defense Production Act, the U.S. solar industry may face more challenges in expanding production scale and obtaining financial support, and the stability of industrial development may also be impacted.

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