With Donald Trump winning the recent presidential election, Michigan residents are paying attention to how potential policy changes might impact solar energy and renewable initiatives. While official policies for the upcoming administration are not yet established, examining Trump’s previous energy policies and priorities offers some insight into potential directions. Here’s a look at how federal shifts in energy policies could affect Michigan’s solar industry, particularly in areas such as incentives, tariffs, and fossil fuel production.

Historical Federal Stance on Solar Energy and Renewable Incentives

1. Renewable Energy Subsidies and Tax Credits
   • In his previous term, Trump’s administration expressed limited support for renewable energy subsidies, prioritizing reductions in federal spending on green energy programs. Solar tax credits, especially the Investment Tax Credit (ITC), have traditionally played a major role in encouraging solar adoption across the U.S. While Trump did not directly eliminate the ITC, his administration previously scaled back other renewable energy support measures.
   • Possible Impact for Michigan: If federal support for the ITC or other solar subsidies changes, the cost of installing solar panels in Michigan could rise, potentially impacting residential and commercial adoption rates. Michigan residents considering solar may want to explore these credits while they remain available.
2. Trade Tariffs and Solar Panel Prices
   • During his last term, Trump imposed tariffs on imported solar panels, aiming to boost domestic manufacturing but inadvertently increasing costs for U.S. solar installations. The 30% tariffs on imported solar equipment raised the cost of solar panels nationwide, impacting affordability.
   • Possible Impact for Michigan: Reinstating similar tariffs could increase solar panel costs for Michigan homeowners and businesses, potentially slowing down installations. If trade tariffs are reintroduced, residents may want to factor potential price changes into their timing for solar investments.
3. Federal Funding for Renewable Energy Programs
   • Trump’s previous administration shifted federal funding away from renewable energy research and development in favor of traditional energy sectors, such as oil and gas. Programs that provided funding and grants for renewable energy projects, including solar, saw funding reductions during his presidency.
   • Possible Impact for Michigan: Michigan’s solar industry has benefited from federal grants that support local renewable energy development. Should funding cuts impact these programs again, growth in Michigan’s renewable sector might rely more heavily on state-level incentives and private investment.

Expansion of Fossil Fuel Production and Its Effect on Solar

Trump has historically promoted increased production of fossil fuels—such as oil, natural gas, and coal—through policies that ease restrictions on traditional energy industries. This approach often involves reducing regulations on fossil fuel extraction and production, aiming to support job creation and energy independence through these sectors.

• Possible Impact for Michigan: Expanded fossil fuel production could make conventional energy more affordable in the short term, which could reduce the relative cost-savings incentive for solar. However, solar may remain attractive for Michigan residents seeking energy independence and sustainable energy solutions.

Environmental Policies and Clean Energy Goals

In his previous administration, Trump prioritized reducing environmental regulations, which included rolling back several policies related to climate action. The rollback of regulations on emissions and renewable energy mandates created a more favorable environment for traditional energy sources while reducing federal emphasis on clean energy goals.

• Possible Impact for Michigan: If the new administration adopts a similar approach, federal policies may focus less on clean energy targets. However, Michigan’s own renewable energy goals and regulations are likely to continue supporting local solar growth. Michigan residents interested in solar may find that state policies provide stability, even if federal environmental standards shift.

Key Considerations for Michigan Residents and Businesses

For those in Michigan considering solar, understanding potential shifts in federal support and policy focus is essential. Here are some steps Michigan residents and businesses can take to prepare:

1. Take Advantage of Current Solar Incentives: The federal Investment Tax Credit (ITC), offering a 30% tax credit on solar installations, remains available through 2032. However, given its history of extensions and adjustments, homeowners may want to consider solar installation while the ITC is still guaranteed.
2. Monitor State and Local Incentives: Michigan has several state-specific solar programs, including net metering and property tax exemptions, that can help reduce solar costs. These local policies are less likely to be impacted by federal changes, providing Michigan residents with a stable source of solar support.
3. Stay Informed on Policy Developments: Federal policies may influence solar in Michigan, especially if they affect costs or incentives. Staying informed on potential changes to tariffs, tax credits, or grants can help residents make timely decisions on their solar investments.

Conclusion

While specific policy directions from the incoming Trump administration are not yet finalized, historical actions suggest a possible emphasis on traditional energy sectors and a reduction in federal support for renewable initiatives. Michigan’s solar industry may face changes in federal incentives and pricing structures, particularly if tariffs or funding adjustments impact solar equipment costs. However, Michigan’s own commitment to renewable energy offers stability for local solar growth, and state-level programs will continue supporting residents interested in making the switch to solar.

By staying informed and leveraging existing incentives, Michigan residents and businesses can make the most of their solar investments, regardless of the broader federal policy landscape.