U.S. President Donald Trump signed an executive order at the start of his second term declaring an “energy emergency,” asserting that national energy development, production, and supply are “far below adequate.” The order made no mention of solar photovoltaics, yet simultaneously suspended all remaining payments under the Inflation Reduction Act (IRA) for renewable energy projects, pending further review.

The subsequent budget-reconciliation package—dubbed the “One Big Beautiful Bill” (OBBBA)—tightened rules in three ways:

Nearly a year on, the impact is clear. SEIA’s Q3 data show 11 GW of new solar installed from July to September—the third-highest quarter on record—with 54 % of cumulative U.S. capacity now in Republican-won states and roughly three-quarters of 2025 additions located there. Yet Wood Mackenzie estimates 73 GW of projects are stalled by political and permitting delays, and forecasters warn the new rules will raise costs and slow deployment.

The “commence-construction” test was also tightened: developers must show “significant physical work” ahead of the safe-harbor deadline, forcing earlier builds and deeper supply-chain audits. FEOC guidance is still pending, but firms are already moving: JA Solar sold a factory to Corning; Trina Solar transferred a module plant to T1 Energy and restructured ownership through a Canadian parent; First Solar and other non-Chinese producers say the policy strengthens their domestic hand.

On tariffs, new anti-dumping and countervailing duties target cells from India, Laos, and Indonesia. A court ruling struck down the two-year moratorium on earlier Southeast-Asian duties; if upheld, retroactive bills could reach billions of dollars. A Section 232 probe on polysilicon imports—citing national-security concerns—remains open and could further raise prices.

Permitting has also tightened. An Interior Department memo requires any solar project on federal land or resources to secure personal approval from the secretary as part of a “high-level review,” effectively halting such applications. Industry groups call the process discriminatory and excessive, though private-land development is unaffected.

Despite shrinking subsidies and stricter rules, U.S. solar grew in 2025. Surging electricity demand from data centers and AI is expected to drive the next wave of installations—provided supply chains adapt to FEOC and tariff requirements. Heading into 2026, developers are racing to safe-harbor equipment, remap procurement, and frame the technology in terms of “energy dominance” and “jobs repatriation” to blunt persistent ideological opposition at the top.