Trump Reverses Biden's Solar Manufacturing Support Under Defense Production Act

U.S. President Donald Trump has reversed a key executive order from the Biden administration, which had authorized the use of Defense Production Act (DPA) funds to support domestic solar PV manufacturing. This decision removes solar PV modules and their components, as well as electrolyzers, fuel cells, and electric heat pumps from the list of DPA-eligible items. Trump also revoked several other measures, including those relating to the minimum wage for federal employees and a range of international human rights and labor policies. Trump stated that these steps were essential for restoring common sense to the federal government and unlocking the potential of American citizens.

In 2022, Biden invoked the DPA to enable the Department of Energy (DOE) to use the act to support the U.S. solar industry. Since then, U.S. solar module production has experienced significant growth. The Solar Energy Industries Association (SEIA) reported that the country surpassed 50GW in annual manufacturing capacity last year, which is enough to meet the projected deployment needs for 2024.

However, while module production has surged, the growth has yet to extend upstream. U.S. solar cell manufacturing remains significantly behind module assembly, forcing many domestic module manufacturers to rely on imported cells. Industry leaders have called for increased support for domestic solar cell and wafer production to strengthen U.S. energy independence and security, a goal that may now be more challenging in light of Trump’s recent decision.