Republican solar cuts raise your electric bill, threaten US energy/AI dominance
House republicans passed their tax bill, which promises to inflate costs for Americans and channel money from the middle class to billionaires, all while sending jobs to China.
But that’s not the only bad stuff that’s in the bill – it will also inflate your electricity costs and threaten a recent boom in solar installations that is helping to grow domestic energy production and feed power-hungry data centers for AI.
The tax bill eliminates popular solar credits that had helped American homeowners to save money on their electricity bills. The main credit in question is the 30% residential solar tax credit, often known as the Investment Tax Credit (ITC).
The credit for homeowners would be sunset at the end of this year, if the bill passes the Senate. The commercial credit would sunset more slowly, but faster than the current law.
Not only does the ITC help homeowners to save thousands of dollars while cutting their electricity bill, it also helps overall electricity costs, even for those who don’t have home solar.
The republican bill will raise your electricity costs
The Clean Energy Buyers Association released a report earlier this year showing how repealing solar credit would raise the average American’s electricity bills by 7% by 2026, the equivalent of a $110 yearly increase. And for businesses, electricity bills will increase by about 10% – higher costs that will then be passed on to consumers in the form of higher prices for consumer goods.
The credits had been helping to fuel a boom in US energy installations. In the first months of this year, 98% of new US electrical generation capacity came from wind and solar, as a result of how relatively quick and easy it is to install wind and solar projects as compared to other generation methods.
It’s particularly important for the US to add more electrical generation capacity at the moment, because two electricity-hungry industries are rapidly scaling up: AI and electric cars.
The US needs more electricity, and fast
Electric cars actually save energy compared to gas cars, and are 4-6x more efficient per unit energy. However, since gas cars aren’t fueled by electricity, energy delivery will have to shift away from gasoline and towards electrical distribution.
So more electrical generation capacity needs to be added in order to unlock the potential energy efficiency gains (and thus cost savings) from fleet electrification.
AI isn’t quite so energy-saving. An AI search uses 30x more energy than a traditional search, and gives less accurate results.
Despite this, US tech companies and the government consider it important to develop AI rapidly, in order to be on the cutting edge of technology.
So, there has been a massive expansion of data centers in the US, and those data centers need electricity to run. It has contributed to global shortages of electricity and increased rates.
Many of these data centers are trying to find green sources of energy in order to offset their wasteful overuse of resources, or at least to greenwash it. So companies have been installing solar, wind, or investigating the possibility of small modular nuclear reactors, which are highly energetic and also zero-carbon, but much more expensive than renewables.
And solar, as mentioned above, is a rapidly deployable electricity generation method, and can often leverage already underutilized space (i.e. rooftops) to help confront today’s energy challenges.
The bill surrenders both points to China
On both of these points, EVs and AI, cutting solar installations will only help to cede ground to China.
By disincentivizing a generation method that can be deployed rapidly, it will make it more difficult to electrify the US fleet, which means US manufacturers will probably spend less focus on EVs (more on that here).
This is not happening in China, which is rapidly transforming its car industry to confront the transition to EVs, and recently became the world’s largest auto exporter due to intransigence from the rest of the world’s auto industry (and through the West handing wins to China with ill-considered policy).
Also, China is rapidly advancing its own AI tech, which it says is more efficient than ours (but that may not be true). Making electricity more expensive for companies, and making it harder for companies to install the generation capacity they need to fuel their data centers, will only serve to choke the industry compared to its international competitors.
Solar industry responds
The Solar Energy Industry of America responded, with similar points that we’ve brought up here.
“If Congress does not change course, this legislation will upend an economic boom in this country that has delivered an historic American manufacturing renaissance, lower electric bills, hundreds of thousands of good-paying jobs, and tens of billions of dollars of investments primarily to states that voted for President Trump.
“This unworkable legislation is willfully ignorant of the fact that deploying solar and storage is the only way the U.S. power grid can meet the demand of American consumers, businesses, and innovation. If this bill becomes law, America will effectively surrender the AI race to China and communities nationwide will face blackouts.
“But that’s not all: Americans’ electric bills will soar. Hundreds of factories will close. Hundreds of billions of dollars in local investments will vanish. Hundreds of thousands of people will lose their jobs. Families will lose the freedom to control their energy costs. And our electric grid will be destabilized.
“It’s not too late for Congress to get this right. The solar and storage industry is ready to get to work with the U.S. Senate on a more thoughtful and measured approach to unleashing true American energy dominance to create a brighter future for all Americans.”
-Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA)
This can change, if the Senate has a spine
From here, the tax bill goes on to the Senate, where it could be modified to take out these poison pills that inflate costs for Americans and threaten US competitiveness globally. The Senate is often though of as a more deliberative body which can tamp down on the excesses of the House, though it failed to do so in another republican anti-clean-air effort today.
If you have a republican Senator, it might be worth letting them know that you support lower electricity costs and keeping America competitive, and therefore that you oppose the anti-solar measures in this bill.
The argument could be made stronger in states that have received significant investment for battery plants, which are important for grid and home storage as backup for solar systems. Battery projects are particularly popular in states like Georgia, North Carolina, and others along the burgeoning US “battery belt”.
To make a comment,, you can find your Senator on Congress’ website, and then search for the contact form on your Senator’s website to get in contact with them.
Of course, if you have a Democratic Senator, it’s also worth letting them know that you oppose the tax bill, just in case a few of them decide to jump ranks and join the republicans in harming America. We certainly hope they don’t, and are encouraged by the fact that every Democrat in the House made the right decision here, but anything could happen.
If the rooftop solar credit is going away, it means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. – ad*
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Drive Electric Month kicks off this week with nearly 200 online and in-person events celebrating electric vehicles over the course of the next month. Events will be held for the next several weekends all across the US, plus a few in Canada and one in Guadalajara, Mexico.
Drive Electric Month is an annual event organized by Plug In America, the Electric Vehicle Association, EVHybridNoire, Drive Electric USA, and the Sierra Club. This is the event’s 15th year. It started in the US as National Drive Electric Week, but for the last few years, some events have been hosted in other countries as well, and now the event has expanded to cover most of the month of September, with a few events in October as well.
These events are an opportunity for prospective EV buyers to talk directly with EV owners about the experience of owning an electric car, and EV owners to network with each other and share tips. The dealership experience is not ideal for many EV shoppers, so unfiltered conversations with EV owners can be a great way to learn.
Each event is organized by local EV advocates, and they range in size from small parking lot meetups and local EV parades to large festivals with lots of booths from nearby car dealers and green businesses. Many events have live music, family-friendly activities, food trucks and the like.
Drive Electric Month has a map and list of events happening over the course of the month. Most events are in-person, but there are some webinar-style online events that you can attend to hear about various topics related to electric vehicles if you can’t get to any local evels. You can also search for events near you.
Be sure to click through to each individual event’s page to see what your local events will look like, what types of EVs might be in attendance, and register your interest.
Here’s a sample of some of the events happening over the course of the month:
- Oregon Electric Vehicle Association (OEVA) Test Drive & Information Expo in Portland, Oregon on September 13, 10am-4pm: Along with the standard test drives and car displays, this event will have a number of gas to electric conversions and antique EVs on display. It’s happening at the Daimler Truck North America headquarters, and some of the space will be used for seminars and presentations.
- Drive Electric Month Oahu in Aiea, Hawaii on September 13, 10am-2pm: The largest Hawaiian event is just outside of Honolulu, but there are events on four Hawaiian islands this year, with the others in Lihue on Kauai on Sep13, Hilo on the Big Island on Sep27, and Kahului on Maui on Oct11.
- Mesa EV Ride & Drive in Mesa, Arizona on September 20, 8am-12pm: A veteran group of organizers is bringing the EV experience to Mesa Community College on Saturday, Sept. 20. People can test drive a variety of models, talk to real owners and learn how and where to charge.
- Jimmy Buffett Son of a Sailor Festival in Mobile, Alabama on September 20, 2pm-7pm: There will be EV displays at this festival which celebrates Jimmy Buffett and Gulf Coast culture. The free festival features live music, local restaurants, parrot-head costume contests and EV drivers who can answer all your questions about driving electric.
- Electric Avenue at the Downtown Car Show in Grand Junction, Colorado on September 20, 9am-3pm: At the 23rd annual downtown car show, EVs will have their own block. Spectators will visit with drivers and can participate in a friendly competition for great prizes.
- Knoxville Drive Electric Festival in Knoxville, Tennessee on September 27, 10am-3pm: This event bills itself as the largest NDEM event in the Southeast. Along with EV displays and ride-and-drive, the live music stage will be powered by a Ford F-150 Lightning using its vehicle-to-load capabilities.
- Plug In America Ride and Drive at Space Coast Pride Parade & Festival in Melbourne, Florida on September 27, 12pm-4pm: Plug In America itself is hosting a ride-and-drive at the Space Coast Pride Parade & Festival on Saturday, Sept. 27. The public can test drive EVs from different manufacturers, engage with local EV owners and ask questions of the organization’s EV experts.
- National Drive Electric Month Waterloo 2025 in Waterloo, Ontario on October 4 from 11am-3pm: This will once again be the largest event in Canada. There are 5 other Canadian events scheduled (all at different times), in Winnipeg (Sep13, today!), Courtenay (Sep14), Saskatoon (Sep21), Toronto (Sep27), and Regina (Sep27).
- ELECTRATON DEM’25 in Guadalajara on October 4 from 9am-5pm: This is once again the sole event in Mexico, hosted at Oscar Casillas Karting Track, where there will also be a 4th annual race of student-built electric karts alongside the EV exhibition and test drives. (Here are some photos from last year’s event, including the student kart races and a Cybertruck on track).
Not all the events are large or hosted in big cities. There are also smaller events happening in town centers, church parking lots, and so on, often with just a handful of EV owners who are typically happy to stand around and have a frank discussion with members of the public about what it’s like to own an EV, or to network with other local EV owners.
Many of these events are happening in conjunction with Sun Day, a global day of action calling for a sun-powered planet on September 21 this year. These events will focus on how solar has become a drastically cheaper form of energy, and highlight ways that everyone can benefit from more solar and by electrifying whatever uses energy in our lives – whether that be vehicles, appliances, etc.
On that front, one notable Drive Electric/Sun Day event will be in Whittier, CA on Sep. 20th (not the 21st) from 11am-3pm, with test drives, an electrified home tour, and an eco scavenger hunt. It’s being organized by one of the original founders of National Drive Electric Week, so expect to see some EV oldtimers at this one.
If you’d like to attend any of these events, either to show your vehicle, to volunteer to help run the event, or just to show up and look around, you can check out the list of events, then go to each event’s page to find more information. Remember to click the “RSVP” or “Volunteer” links near the top to register your interest (or register at the links mentioned in the event description).
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Tesla has discontinued the cheapest version of the Cybertruck just a few months after launching it.
No one wanted the gutted electric truck.
There’s no hiding it. The Cybertruck is a commercial flop.
Tesla claimed to have over 1 million reservations for the vehicle. It planned for a production capacity of up to 250,000 units per year, and CEO Elon Musk even said that he believes it could increase to 500,000 units per year.
Meanwhile, Tesla is currently selling the Cybertruck at a rate of roughly 20,000 units per year.
The primary reason for the significantly lower-than-anticipated sales is that Tesla launched the Cybertruck at a higher price and with worse specifications than initially announced.
To address this, Tesla introduced a more affordable version of the electric pickup truck, the Cybertruck rear-wheel-drive, in April 2025.
Instead of starting at $80,000, like the Cybertruck AWD, the Cybertruck RWD started at $70,000.
However, it was an even worse deal because Tesla had essentially stripped the vehicle of its most valuable features, including active air suspension, a motorized tonneau cover, and even the power outlets in the bed, in addition to removing a motor.
Less than 5 months after launching the new vehicle, Tesla has discontinued the Cybertruck RWD.
The automaker updated the Cybertruck’s online configurator to remove the option:
Tesla hasn’t replaced the variant with a new one. It just stopped taking orders.
Electrek’s Take
I don’t know of anyone who ordered this. It was such a bad deal. There’s already only a small pool of potential Cybertruck buyers, but none of them want to lose all those essential features for $10,000.
Where does the Cybertruck go from there? Does Tesla keep the vehicle program at just ~20,000 units per year?
I think they may try to do an upgrade next year to bring it closer to what they originally promised and see if there’s more demand as a result.
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OpenAI CEO Sam Altman speaks to members of the media as he arrives at a lodge for the Allen & Co. Sun Valley Conference on July 8, 2025 in Sun Valley, Idaho.
Kevin Dietsch | Getty Images News | Getty Images
Oracle‘s historic stock surge this week marked the latest chapter in the story of a single private company that’s dominated the tech landscape for almost three years: OpenAI.
In Oracle’s blowout earnings report, OpenAI was a key catalyst due to a massive amount of money the artificial intelligence startup expects to spend on cloud computing technology in the coming years.
It’s becoming a familiar theme.
A week earlier, Broadcom shares popped almost 10% after the chipmaker and software vendor said it forged a $10 billion deal to build custom processors for a customer that analysts said was OpenAI.
Among tech’s megacaps, Microsoft has the closest link to OpenAI, having invested more than $13 billion in the company and serving as its key cloud partner for six years. Nvidia’s march to becoming the world’s most valuable company is intimately tied to OpenAI, as its graphics processing units (GPUs) sit at the heart of large language model development and are essential for running big AI workloads.
Those four companies alone — Oracle, Broadcom, Microsoft and Nvidia — have seen their combined market caps swell by over $4.5 trillion since OpenAI burst into public view with the launch of ChatGPT in late 2022. And those gains are a big reason why the Nasdaq and S&P 500 have sustained sharp rallies, with both benchmarks closing at a record on Friday.
OpenAI’s outsized influence has some market experts understandably concerned. It remains a cash-burning startup that’s governed by a nonprofit parent.
The company’s $500 billion valuation is supported by a small number of investors betting that OpenAI will prevail in the face of hefty competition from the likes of Meta and Google as well as other highly-valued newcomers like Anthropic and any number of players out of China.
“While we love ChatGPT, OpenAI is still a not for profit limited in its ability to raise capital,” said Gil Luria, an analyst at D.A. Davidson, in an interview with CNBC.
Luria, who recommends holding Oracle shares, dug into the company’s numbers as the stock was in the midst of a 36% jump on Wednesday, its biggest gain since 1992.
In its quarterly earnings report late Tuesday, Oracle said it signed four multibillion-dollar contracts with three different customers during the period. One of those was with OpenAI, which said previously that it agreed to develop 4.5 gigawatts of U.S. data center capacity with Oracle.
Investors knew, based on a filing with the SEC in June, that Oracle signed a $30 billion cloud contract with an unnamed company that’s set to begin in two years. CNBC confirmed a Wall Street Journal report from Wednesday that OpenAI has agreed to spend $300 billion in computing power over about five years, starting in 2027.
In the two trading days after its historic pop, Oracle’s stock retreated, dropping more than 6% on Thursday and another 5% on Friday, as other investors began sharing Luria’s concerns.
The new revelations about OpenAI’s massive cloud commitment provided a clearer sense of Oracle’s expanding backlog. Oracle said its performance obligations, a measure of contracted revenue that has not yet been recognized, surged 359% from a year earlier to to $455 billion.
Luria said the concentration of Oracle’s backlog with a single customer “significantly reduces” enthusiasm, particularly if “more than 90% came from OpenAI.”
Oracle didn’t respond to a request for comment.
Altman’s open wallet
OpenAI has made big commitments to several other cloud providers, including CoreWeave and Google, and reportedly plans to put $19 billion toward Stargate, a project President Donald Trump announced in January to bolster AI infrastructure investments in the U.S. Stargate is a joint venture between OpenAI, Oracle and SoftBank, which is separately leading a planned $40 billion investment in OpenAI.
Luria said the takeaway is that “Sam Altman has the gumption to sign very large checks without needing to worry about whether those can ever be cashed.”
OpenAI declined to comment.
While OpenAI will be losing money for the foreseeable future, the company is expecting revenue growth to continue at a breakneck pace. After hitting $10 billion in annual recurring revenue in June, OpenAI is on pace for that number to reach $125 billion by 2029, CNBC confirmed.
And on Thursday, OpenAI got a step closer to formalizing its transition to a for-profit entity. The company said its nonprofit parent will continue to have oversight over the business and will own an equity stake of more than $100 billion as the commercial entity becomes a public benefit corporation.
OpenAI needs the restructuring to take place by year-end in order to secure the entirety of the $40 billion from its latest financing round.
For Oracle, the massive increase in OpenAI spending has landed the company within shouting distance of the trillion-dollar club, which currently includes eight tech peers. Oracle’s market cap climbed to about $930 billion on Wednesday before retreating to $830 billion to close the week.
Byron Deeter, a partner at Bessemer Venture Partners, told CNBC’s “Money Movers” that he’s still skeptical of Oracle’s prospects in AI. The company has spent years trying to play catchup in cloud infrastructure, where it trails Amazon, Microsoft and Google.
Deeter said Oracle remains a “B-level hyperscaler” without meaningful positions in AI software or chips.
“Two days ago, we all thought Oracle was essentially nowhere in AI,” Deeter said, following the earnings report. “They announce this mega-deal, people think they’re the next great hyperscaler – and I don’t buy that part.”
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