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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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Another Japanese automaker is now ‘re-evaluating’ EV plans

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Another Japanese automaker is now 're-evaluating' EV plans

Subaru is the latest Japanese automaker to announce it will “re-evaluate” its EV plans. The company is rethinking its strategy with slowing sales and a potential multi-billion-dollar hit from Trump’s auto tariffs. The tariffs might not even be Subaru’s biggest threat.

Subaru and other Japanese automakers adjust EV plans

Within the past week, Japanese automakers, including Nissan, Honda, Toyota, and now Subaru, have announced major adjustments to their EV plans.

After releasing fiscal year financial results on Wednesday, Subaru’s CEO, Atsushi Osaki, said, “We are re-evaluating our plans, including the timing of investments.” Osaki added that the move is due to “today’s rapidly changing environment” and other external factors.

Like most of the industry, Subaru is bracing for a shift under the Trump administration, which could cost it billions. With around half of its vehicles sold, the US is key for the Japanese automaker.

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Subaru said Trump’s new auto tariffs could cost the company up to $2.5 billion this year. The automaker is looking at ways to boost US production, but it won’t be easy.

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2025 Subaru Solterra (Source: Subaru)

Tomoaki Emori, Subaru’s senior managing executive director, said (via Automotive News), “Under the current circumstances, there is probably no way not to expand in the US. We must think about how to go about that.”

Emori added that the company still has the production capacity, “so we would like to mitigate the impact of tariffs while making use of it.”

Subaru joins a growing list of automakers in pulling its earnings forecast, citing “developments in US tariff policy” make it hard to forecast.

Japanese-automaker-EV-plans
2025 Subaru Solterra (Source: Subaru)

The company’s global sales fell 4.1% to 936,000 units over the past year. In North America, deliveries also fell 4.1% to 732,000 vehicles. Subaru anticipates global sales will continue dropping to around 900,000 this year, or another 4% drop. A part of the forecast is due to downtime at its Yajima plant as Subaru prepares to produce EV batteries.

Osaki said Subaru is “making various preparations for a BEV-dedicated plant,” but added it may add a mix of gas-powered vehicles.

Japanese-automaker-EV-plans
2026 Subaru Trailseeker electric SUV (Source: Subaru)

Subaru unveiled its second EV for the US at last month’s NY Auto Show, the 2026 Trailseeker. The Outback-sized electric SUV will go on sale in 2026, joining the smaller Solterra in Subaru’s EV lineup in the US.

Since “It is becoming more difficult to decide how to incorporate electrification into our production mix,” Emori said, Subaru is “thinking about how to incorporate hybrids and plug-in hybrids.”

Electrek’s Take

Subaru and other Japanese automakers are quickly falling behind Chinese EV leaders like BYD in some of their most important sales regions, like Southeast Asia.

Delaying new EV models and other projects will only set them further behind in the long run. Nissan is in crisis mode after scrapping plans to build a new battery plant in Japan. The facility was expected to produce lower-cost LFP batteries, which could have helped Nissan compete on costs with BYD and others.

Last week, Toyota’s President, Koji Sato, said the company will be “reviewing” its goal of selling 1.5 million electric vehicles by 2026. And just yesterday, Honda announced plans to pause around $15 billion in planned EV investments in Canada.

BYD and other EV leaders are expanding overseas to drive growth after squeezing foreign brands, especially Japanese automakers, out of China.

Next year, BYD is launching its first kei car, or mini EV, that’s expected to be a big threat to Japanese automakers. A Suzuki dealer (via Nikkei) warned, “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”

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Porsche just added 97,000 more charging stations to its app

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Porsche just added 97,000 more charging stations to its app

Porsche Cars North America has integrated over 97,000 more charging stations into its app, streamlining its Porsche Charging Service.

That brings the total number of EV charging stations available to Porsche Charging Service customers in the US to 102,000, with more scheduled to be added in 2025. That means Porsche drivers can now use the My Porsche app as a one-stop shop to easily find, use, and pay at most J1772 and CCS charging stations.

“This is a significant milestone for Porsche and the electric vehicle journey,” said Timo Resch, president and CEO of Porsche Cars North America. “We know flexibility and choice are important.”

Customers in the Porsche Charging Service inclusive period – that’s the year after you buy your EV – or who sign up for Porsche Charging Service Premium can now access the ChargePoint, EV Connect, EVgo, Flo, EvGateway, and Ionna networks, in addition to chargers in the Electrify America network. 

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Customers in the Porsche Charging Service Base plan will receive access later this summer. 

More info is here.

Read more: ChargePoint unveils ‘revolutionary’ V2X EV charger tech that can double Level 2 speeds


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

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Tesla (TSLA) board explore new pay deal for Elon Musk

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Tesla (TSLA) board explore new pay deal for Elon Musk

Tesla’s (TSLA) board is reportedly exploring a new CEO pay deal for Elon Musk, who might not get back his $55 billion 2018 compensation package.

According to a new Financial Times report, Tesla’s board created a new “special committee” to explore a new CEO pay package for Musk.

The report points to the committee looking at new stock options and “alternative ways” to compensate Musk if Tesla fails to reinstate his 2018 compensation package, which was rescinded by a judge who found that Musk negotiated the deal with a board under his control and then misrepresented it to shareholders.

Musk is Tesla’s largest shareholder and therefore, he stands to benefit the most when the company does well. However, he doesn’t take a salary for his role as CEO.

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Historically, He has received stock compensation packages, with the one secured in 2018 being the controversial one currently under contention.

Since then, no new CEO compensation package has been approved, and Tesla has not suggested another one as it tried to appeal the judge’s decision on the 2018 package.

The company is currently attacking the decision on two fronts with an appeal to the Delaware Supreme Court and a new legislation in Delaware to try to circumvent the decision altogether.

FT reporting that the board is working on a new compensation package with backpay could point to Tesla anticipating not being able to reinstate the original compensation package.

Robyn Denholm and Kathleen Wilson-Thompson are the board members reportedly on the new committee.

Denholm took over from Musk as Tesla’s chair, and she has recently made headlines for selling her Tesla stock options for more than $530 million over the last few years.

Electrek’s Take

It increasingly looks like Tesla won’t be able to distance itself from Musk and separate its fate from his.

Musk has masterfully convinced Tesla shareholders that the destruction of its core business, selling electric vehicles, doesn’t matter because the company is on the verge of solving self-driving – something he has claimed every year for the last 6 years and has been wrong every time.

Now that they don’t care about EVs, there’s no point in blaming Musk for killing demand and delivering a single new vehicle in 5 years, the Cybertruck, a commercial flop.

Therefore, the only thing that will make Tesla shareholders stop wanting Musk as CEO is if they stop believing his self-driving and humanoid robot claims.

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