Oct 20, 2025

The Inflation Reduction Act: One Year Later – What’s Changed for Solar?

Introduction

Since its passage, the Inflation Reduction Act (IRA) has been hailed as the most transformative piece of climate legislation in U.S. history. One year later, the impact on the solar industry is clear: growth is accelerating, domestic manufacturing is rising, and clean energy is becoming more accessible than ever before.

Boost in Solar Installations

The IRA’s extended tax credits have spurred a surge in solar adoption across residential, commercial, and utility-scale projects. More projects are being financed, and installers report growing pipelines fueled by long-term policy certainty.

Domestic Manufacturing Boom

One of the IRA’s key goals was to encourage reshoring of solar manufacturing. Incentives for module, inverter, and battery production have led to dozens of factory announcements across the U.S., boosting jobs and supply chain resilience.

Equity and Access Provisions

The law provides incentives for projects in low-income and energy communities. This ensures that the benefits of solar expansion extend beyond wealthy households and corporations, making clean energy more inclusive.

Grid and Storage Synergy

The IRA also expanded credits for energy storage, paving the way for more resilient solar-plus-storage systems. This supports grid stability, particularly as renewable penetration increases.

Challenges Ahead

While progress is strong, the industry still faces hurdles:

Delays in interconnection queues
Inflationary pressures on equipment costs
Workforce shortages that may slow the pace of installations

The Bigger Picture

The IRA has given the solar industry long-term certainty, which is a rarity in U.S. energy policy. With over a decade of guaranteed incentives, solar is no longer a niche energy source—it’s a pillar of America’s energy future.

TL;DR