# The Future of Solar: How Clean Energy Credits Impact Deployment
The solar industry plays a crucial role in meeting the growing energy demand in the U.S. As electricity consumption rises—driven by data centers, electrification, and manufacturing reshoring—solar companies are working hard to deploy affordable and sustainable solutions. However, a new report reveals that the presence or absence of clean energy tax credits could significantly affect the future of solar deployment.
## How Tax Credits Influence Solar Growth
A recent study by The Brattle Group projects a strong future for solar deployment under existing federal tax credits. If the current incentives remain in place, the U.S. could see 550 gigawatts (GW) of new solar capacity installed by 2035. However, if those tax credits disappear, that number drops dramatically to just 242 GW—a reduction of more than half.
This drastic change highlights the vital role that incentives play in making solar panels for your home and large-scale solar arrays more accessible and cost-effective. Without these credits, the cost of residential electricity bills would rise, particularly in states with high wind energy potential, such as North Dakota, Kansas, and Iowa.
## Solar and Wind: The Most Cost-Effective Solutions
With a projected
Original Article: https://pv-magazine-usa.com/2025/03/18/eliminating-tax-credits-would-reduce-solar-and-wind-deployment-by-half-says-brattle/
