Congress Must Not Ignore Residential Solar Tax Credit Inequities
Courtesy of RMI.
By Ryan Shea & Russell Mendell
Through the Justice40 Initiative, President Biden has made clear that bringing clean energy benefits to marginalized and low-income communities is a priority. Right now, low-income households experience up to three times higher energy burden (the percent of household income spent on energy costs) than high-income households. Rooftop solar is one of many important solutions available to help alleviate this burden. When financed, it can immediately lower household energy bills with no money down in many parts of the country.
Unfortunately, rooftop solar has disproportionately benefited high-income and White residents. While low-and moderate-income (LMI) residents make up 43 percent of the US population, only 21 percent of residential solar installations benefited these communities in 2019. On top of that, nearly half of communities with a majority of Black residents did not have a single solar system installed.
This disparity is exacerbated by the inequitable design of existing tax credits that incentivize residential solar. The solar investment tax credit (ITC) provides minimal advantage for those with little to no federal income tax — and thus have little use for a tax break.
In its version of the reconciliation bill, the US House of Representatives has included a direct pay option under section 48 (ITC 48) for business- and utility-scale renewables. This would allow entities without sufficient tax liabilities to take full, direct advantage of the ITC and accelerate renewable deployment. But, importantly, the current bill language does not extend the same direct pay provisions under section 25 (ITC 25D) for residential solar.
It is essential for Congress to change ITC 25D from a tax break to direct pay to help bring clean energy to more Americans, particularly LMI Americans. Specifically, the change would:
- allow substantially more homeowners to use the tax credit,
- further enable clean energy sources to help alleviate LMI energy burden, and
- bring solar jobs to LMI communities.
Residential Direct Pay Makes the Tax Credit Available to Substantially More Households
The House’s currently proposed version of the residential tax credit under section 25D can offset the upfront cost of a typical solar photovoltaic system by around $5,000 (assuming $3.30 per watt installed and a 5 kW system). That discount would be far out of reach for almost all LMI households, and even many middle-income households, given that their tax burdens often fall below that threshold.
Around 7 in 10 American tax filers would not have enough annual tax liability to receive the full ITC 25D benefit, according to 2018 data from the IRS. And the more than 4 in 10 Americans that do not have any federal income tax liability at all would see zero benefit.
Consider a married couple with one child making a combined income of $60,000 per year (around 70 percent of the median family household income). Given their annual federal tax liability of around $1,500, they would see only 30 percent of the House’s currently proposed residential solar tax credit in the year that they purchased the system. The inequities are even starker for low-income households. If that same household made $45,000, they would likely not receive any benefit.
While the current ITC 25D does have a carryforward provision that allows taxpayers to apply the rest of the credit in future years, most homeowners do not realize this complicated provision. Even with this policy in place, LMI households likely cannot wait years to receive the full amount, and the bottom half of earners still receive little to no benefit from the incentive.
Residential Direct Pay Can Help LMI Residents Reduce Their Energy Burden
Changing the ITC 25D from a tax break to direct pay would not only lower the upfront cost of solar for residents, but it could also be the catalyst for LMI homeowners in many states to lower their energy costs. For the more than 100 million American households without the tax liability to utilize the full ITC 25D, changing this benefit to direct pay could be the difference between rooftop solar lowering or increasing their bill.
For LMI households without any federal tax liability, an average 20-year rooftop solar loan would reduce their energy burden in just 19 states under the current policy, according to an analysis using RMI’s forthcoming Residential Solar Calculator. Direct pay for ITC 25D would bring this number to 38, doubling the number of states where families below the federal income tax threshold would be able to use a solar loan to save money with no money down.
This change would also decrease utility bills by around 20 percent. This could significantly accelerate the solar market in these 19 additional states and bring the co-benefits to more LMI communities.
Residential Direct Pay Is Essential to Bring Solar Jobs to LMI Communities
By modifying the ITC 25D to direct pay and opening up the solar market to a previously untapped portion of the country, the solar industry can also bring economic development and workforce benefits to LMI communities.
If LMI communities could match the levels of annual rooftop solar installations that are currently seen in high-income neighborhoods, an additional 1.2 GW of residential solar economic activity could take place in LMI communities each year. This would generate nearly $4 billion more in economic activity (assuming $3.30 per watt installed) and over 26,400 more jobs each year (assuming 22 residential solar jobs per MW). To realize this full impact, solar job training will also be essential to ensure a smoother, more equitable transition to cleaner energy sources, while maximizing economic benefits.
It’s Time for Congress to Take Action
Right now, Congress has a once-in-a-decade opportunity to design equitable climate policy that will ensure all communities can access the benefits of renewable energy.
Fortunately, momentum is building. The Residential Renewables for All coalition recently formed to advocate for this change to the residential solar tax credit, which 25 US Senators have urged leadership to include in reconciliation. The coalition includes more than 350 environmental justice advocates, environmental justice organizations, and renewable energy businesses.
For too long, the ITC 25D has made solar deployment more inequitable. To level the playing field and reduce the energy burden for lower-income Americans, all households should have the same opportunity to access residential solar incentives. This simple change can lead to more equitable solar deployment and bring the economic, workforce, health, and emissions benefits to the communities that need them most.
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Environment
Destroyed Cybertruck used in Vegas bombing is for sale, Musk said Tesla would rebuild it
The Tesla Cybertruck used in the Las Vegas bombing appears to have landed in an auction for sale as salvaged, still destroyed. CEO Elon Musk said Tesla would put it back on the road.
Good luck with that.
In January, a Tesla Cybertruck exploded at the Trump Tower in Las Vegas.
The driver is believed to have shot himself in the head right before the vehicle exploded. Evidence proved that some firework mortars and gas canisters were inside the Cybertruck’s bed.
After the explosion, Tesla CEO Elon Musk praised the Cybertruck for “containing” the explosion and reducing the damage.
He even went as far as claiming that the powertrain was still working and that Tesla would rebuild the Cybertruck and bring it back on the road:
“Once we get this Cybertruck back to Tesla, we’ll buff out the scratches and get it back on the road.”
When questioned about the seriousness of this statement, he affirmed, “No, I mean it.”
They clearly haven’t yet because the Cybertruck has now shown up as a salvaged vehicle for auction on IAA’s site:
It’s not clear if Tesla had an opportunity to get the truck until now, but they certainly could buy it now.
Electrek’s Take
Good luck rebuilding the truck. Maybe they can salvage the battery pack and motors in a new truck, but there’s no way or point to salvage the chassis.
Elon has already confirmed that Tesla engineers have looked at the car. I’m sure that they had the opportunity to get it from the insurance company.
I bet that Tesla doesn’t want the car, and it won’t be back on the road as Elon claimed. You can add it to the list of lies he told this year. Are we in the hundreds already? And we are only in March.
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What’s better than an all-electric boat? An all-electric boat with a hot tub in it. Niche boatbuilder Spacruzzi made waves (but limited wake) last year with an electric hot tub boat model showcased around the US, including Lake Tahoe and even on the Chicago River. For 2025, Spacruzzi has introduced a sleeker and more refined version of its electric boat and opened its waiting list for a limited number of builds scheduled for this year.
Spacruzzi is a marine vessel developer whose flagship product shares the same name and looks to stand out as a luxury option for both private owners and rental operators. Per the company website:
While there have been other versions of hot tub boats on the market over the years, nothing comes close to matching the experience of a Spacruzzi. From the attention to detail, luxury finishes and patent pending features to the outstanding build quality and ease of ownership – we have set out to create the most sought after experience on the water. We built Spacruzzi to provide an unforgettable experience to the end user while giving rental operators and entrepeneuers an exciting new offering to build and grow their business and it is our mission to enable this industry to thrive.
Each electric boat is designed, fabricated, and assembled by hand at Spacruzzi’s facilities in Polson, Montana. They arrive fully compliant for anyone and everyone to operate and deliver mobility technology that exceeds environmental regulations.
A previous version of the Spacruzzi electric hot tub boat appeared on the FOX game show Snake Oil, and several were put into rental operations on the Chicago River—available even during some of the colder months.
Recently, Spacruzzi introduced an updated version of its electric hot-tub boat featuring a more luxurious look and feel. Additionally, a select few can put a deposit down to secure one for themselves this year.
Spacruzzi introduces upgrades to its 2025 hot tub boat
The images above show the updated version of Spacruzzi’s electric hot tub boat. This model is 15.6 feet long and 8.2 feet wide, with a draft of only 2.75 feet, enabling it to navigate shallow waters. When on the water, the Spacruzzi electric hot tub boat offers room for 6 passengers and weighs about 4,500 pounds at max capacity, alongside 400 gallons of water in the tub itself, which can be heated to up to 104℉.
The hot tub boat is propelled by a 3.0 Torqeedo electric motor pod that delivers approximately 3-5 horsepower, translating to 4-5 mph speeds on the water. A USCG-compliant propane heater supports the vessel’s hot tub operations, and two compartments aft of the vessel offer room for up to four lithium battery packs capable of powering the motor, heater, and internal water treatment system for up to 16 hours.
Each boat includes one battery pack that can deliver between four and five hours of running time on a single charge. Each boat also has AC charging capabilities, but Spacruzzi can add fast charging for an additional fee. Speaking of fees, Spacruzzi shared that it has opened its waitlist for its 2025 hot tub boat production schedule.
Interested individuals or businesses can secure an electric hot tub boat build with a $2,500 non-refundable deposit. When Spacruzzi is ready to assemble your vessel, it requires a 50% deposit minus the $2,500 waitlist deposit. The final 50% payment is due when the order is complete; it will be shipped to your specified destination. Spacruzzi says builds take about 90-100 days after receiving the 50% production deposit. Per Spacruzzi, the base price of its updated boat is $68,500.
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Ford is investing billions in Europe as it struggles to keep pace with the wave of Chinese and other low-cost EVs hitting the market. With another 4.4 billion euros ($4.8 billion) in funding, Ford looks to turn things around, but it’s also calling on lawmakers to do more.
Ford injects billions in Europe to fight Chinese EVs
With “significant losses” over the past few years, Ford is restructuring its business in Europe as it aims to cut costs and simplify operations.
Back in November, the American automaker said it planned to cut another 4,000 jobs in Europe by 2027, blaming “lower-than-expected” demand and mounting pressure from new EVs entering the market, including Chinese brands like BYD and SAIC’s MG.
Ford announced plans to invest another 4.4 billion euros ($4.8 billion) on Monday to support its transformation. The funds will be used to reduce the growing debt at its German subsidiary, Ford-werke GmbH.
In a statement, the company said the new capital injection will help reduce debt at Ford plants in Germany and fund a multi-year business plan. Ford’s German unit has about 5.8 billion euros ($6.3 billion) of debt.
Ford Motor Company’s vice chairman, John Lawler, explained, “With the new capital for our German subsidiary, we are driving the transformation of our business in Europe and strengthening our competitiveness with a new product range.”
Lawler stressed the need to “simplify our structures, reduce costs and increase efficiency” if it wants to compete. He added that Europe needs “a clear political agenda” to promote EV adoption that aligns with consumer demand.
Over the past few years, Ford has invested heavily in Europe to better compete, including $2 billion to upgrade its Cologne manufacturing plant to produce EVs.
The plant builds two models, Ford’s electric Explorer and Capri. Although Ford revealed its fourth EV for Europe (including the Mustang Mach-E) in December, the Puma Gen-E is being built in Romania.
Electrek’s Take
Can Ford spark life back into its European business? It’s not the only one struggling to keep up with new competition, Volkswagen is also cutting jobs in its home market and is even considering closing plants.
Legacy automakers, like Ford and Volkswagen, have been caught off guard by Chinese EV leaders like BYD’s aggressive expansion overseas to drive growth.
According to Jato Dynamics, Chinese brands are quickly gaining traction in Europe. In January 2025, 37,134 Chinese vehicles were registered, a 52% increase from the previous year. During the same time, Chinese brands’ market share grew from 2.4% to 3.7%. Combined, it would now put them ahead of Ford.
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