By Juan Fermin, NoSocialism.com
April 26, 2025
Solar energy empowers American homeowners to generate their own electricity, lower bills, and reduce reliance on monopoly utilities. Rooftop solar systems have proven their worth, keeping lights on during blackouts in Texas, wildfires in California, and hurricanes in Florida. These technologies align with conservative values of self-reliance and resilience, enabling families to take control of their energy needs without waiting on utilities or government aid. However, the federal investment tax credit (ITC) for solar, while well-intentioned, must be reconsidered in light of our nation’s fiscal crisis. There's a lot of support out there to keep these Tax Credits, but with annual deficits exceeding $1.9 trillion and a national debt surpassing $33 trillion, government spending must be curtailed to stabilize the economy and protect all Americans from the crushing effects of high interest rates.
"In 2024, the federal government spent over $700 billion on interest payments alone—more than the entire defense budget."
Continuing the ITC risks creating dependency, discouraging innovation, and propping up a mature industry that no longer needs it. More critically, it exacerbates our ballooning deficit. In 2024, the federal government spent over $700 billion on interest payments alone—more than the entire defense budget. The Congressional Budget Office projects deficits will average $2 trillion annually over the next decade, driving interest rates higher as the government competes for borrowing. High interest rates hurt everyone: families face steeper mortgage and auto loan payments, small businesses struggle to expand, and the cost of goods rises. For the average American—especially those earning far less than $100,000—these pressures outweigh the benefits of a tax credit that primarily aids wealthier households. By prioritizing fiscal discipline, we can lower interest rates, stabilize the economy, and create a rising tide that lifts all boats—not just those with solar panels.
Eliminating the ITC doesn’t mean abandoning solar. States can offer their own incentives, tailored to local needs, without adding to the federal deficit. Utilities can be pushed to streamline interconnection processes and fairly compensate homeowners for excess solar energy fed into the grid. Regulatory reforms, like cutting red tape for permitting and installation, would further reduce costs. These market-driven solutions align with conservative principles, fostering competition and innovation while keeping government out of the equation.
"The answer isn’t more federal spending—it’s breaking up monopolies, deregulating energy markets, and empowering consumers through choice."
Monopoly utilities, with their unchecked rate hikes and record profits, are a real problem. Pacific Gas and Electric’s $2.2 billion in 2023 profits, coupled with new fees and rate increases, shows how utilities exploit captive customers. But the answer isn’t more federal spending—it’s breaking up monopolies, deregulating energy markets, and empowering consumers through choice. Solar thrives in competitive environments, and homeowners shouldn’t need a tax credit to say “no” to utility greed.
Supporting solar means supporting ingenuity and independence, but it shouldn’t come at the expense of fiscal sanity. By phasing out the ITC, we can promote solar adoption through market reforms while tackling the deficit that threatens our economic future. High deficits and soaring interest rates hurt every American, from the solar-powered homeowner to the renter struggling with rising costs. It’s time to cut spending, unleash markets, and let solar shine on its own.
