The Donald Trump administration has removed solar PV manufacturing from the DPA
It revokes Biden-era policy that aims to boost domestic clean energy production
Trump has promised to rescind more such orders from the previous administration in the future
US President Donald Trump has issued an executive order to rescind solar PV module and module components manufacturing from the Defense Production Act (DPA) of 1950. It was included under the act by the previous administration under Joe Biden.
In June 2022, Biden issued presidential determinations, empowering the US Department of Energy (DOE) to utilize the DPA to accelerate domestic production of 5 key energy technologies, namely solar; transformers and electric grid components; heat pumps; insulation; and electrolyzers, fuel cells and platinum group metals.
Biden’s idea was to strengthen domestic manufacturing capabilities for clean energy technologies like solar to reduce the country’s clean energy imports and cater to the growing demand for these globally.
“In using the DPA to support clean energy manufacturing, the Department will encourage recipients of federal support to use strong labor standards, including project labor agreements and community benefits agreements that include local hire provisions,” stated the DOE back then.
Trump’s decision to rescind solar PV manufacturing is part of the 78 Presidential orders and memoranda issued by Biden rescinded by the current administration, as more are under evaluation.
“I have determined that the following additional rescissions are necessary to advance the policy of the United States to restore common sense to the Federal Government and unleash the potential of American citizens,” stated Trump in his executive order.
Trump’s new order is one among several decisions of the new administration, including rollbacks for clean energy funding, that are feared to impact the clean energy industry in the country, especially solar. On his 1st day in office, Trump signed the Unleashing American Energy executive order, freezing the disbursement of funds through the Inflation Reduction Act (IRA) that has been a major driver of investment in the US solar PV industry.
At present, the US has over 50 GW of annual solar module production capacity, but the remaining upstream components are missing. These capital-intensive steps need financial and regulatory support to expand (see US Solar Module Manufacturing Capacity Exceeds 50 GW Milestone).
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