The Trump administration on Thursday proposed rolling back federal incentives for solar energy and expanding the use of tax credits for homeowners who buy energy from renewable sources.
The proposal, the latest in a series of measures aimed at curbing carbon emissions, could also spur more coal-burning power plants, according to two people familiar with the matter.
The people spoke on condition of anonymity because they weren’t authorized to speak publicly about the proposal publicly.
Trump administration officials said the new rules would help homeowners pay more for energy.
The proposed rule would cut the $5,000 annual solar energy credit by 50 percent, from $25,000 to $10,000, and would eliminate the $500 per year tax credit for homeowners.
The Trump administration also wants to allow businesses to deduct solar energy costs from their federal income taxes.
The proposal would also eliminate the deduction for the cost of solar panels and installation.
The solar credits are currently only available for qualified solar energy.
The proposed rules could help homeowners with solar energy because they help them lower their energy bills and avoid additional federal taxes, said Jessica Hahn, senior energy analyst at the Solar Energy Industries Association, a trade group for solar panels.
But she cautioned that the rules would have an impact on a small number of solar power producers and may not impact all households.
Solar panels aren’t cheap.
Many of the companies that provide the panels and panels are privately held, making the prices of solar energy a bigger concern for homeowners, said Andrew Schmitt, vice president of policy and government affairs at the American Solar Association.
The cost of panels is rising because the technology is being adopted by many companies, he said.
The new rule would increase the cost for homeowners by $5 a year for solar electricity and $10 a year on the solar panels, Schmitt said.
The administration said the rule would help ensure that the federal government can afford to meet its climate goals and would encourage solar power generation by reducing greenhouse gas emissions.
But a key sticking point is whether the rules can be waived for low-income households, the people said.
If a home has a family of four, the family may be eligible for a solar credit of $5 per month, or $10 per year.
But if the family doesn’t have children or have health insurance, they might qualify for a credit of only $10 or $20 a year, the sources said.
While the Trump administration is seeking to encourage the adoption of solar in new markets, the Trump Administration has signaled it may seek to weaken other policies aimed at combating climate change.
The Department of Energy said last month that it would withdraw an Obama-era rule aimed at reducing greenhouse gases by using the tax credits to encourage homeowners to purchase solar panels for their energy needs.
The rule, known as COVID-19, was designed to encourage people to buy renewable energy and reduce the impact of CO2 emissions on global warming.
It was intended to promote energy efficiency and to increase the amount of energy Americans produce from renewable energy sources.
But it has been widely criticized for not meeting its goals.
Solar energy is one of several renewable energy options being used to fight climate change and is a significant part of President Donald Trump’s energy vision.
The White House has said solar energy will reduce the cost and impact of energy on the grid and help reduce dependence on fossil fuels.