Chris Wright's Appointment Signals a Record Year for Solar Energy in 2025

Dear Business Leader,

As we approach the end of 2024, the solar energy sector in the United States has witnessed unprecedented growth, particularly in traditionally conservative, or "red," states.

This surge not only underscores the economic viability of solar power but also highlights a bipartisan embrace of renewable energy solutions.

Record-Breaking Installations and Capacity

In the third quarter of 2024, the U.S. installed a remarkable 8.6 gigawatts (GW) of solar capacity, marking a 21% increase compared to the same period in 2023. This achievement is even more striking when contrasted with 2018, a year in which the total annual installations were approximately 10 GW.

Leading this charge is Texas, which added an impressive 2.4 GW of solar capacity in Q3 alone, accounting for 26% of all new solar capacity brought online in 2024.

This expansion has enabled Texas to surpass California in utility-scale solar capacity, solidifying its leadership in renewable energy.

Florida follows closely as the second-largest contributor to solar expansion this year, with nearly 30,000 households making the switch to solar power in 2024.

Economic and Employment Impacts

The solar industry's growth has been a significant driver of job creation. As of 2022, the sector employed over 263,000 workers across all 50 states, with a 3.5% increase from the previous year.

Notably, 65% of these jobs are in installation and project development, sectors that have seen substantial activity in red states like Texas and Florida.

Bipartisan Support and Policy Implications

The expansion of solar energy in conservative states reflects a pragmatic approach to energy policy, focusing on economic benefits and energy independence.

Red states like Texas, Florida, and Oklahoma have embraced solar not necessarily for environmental reasons, but because of the immense economic opportunities it offers.

In 2024 alone, solar projects in Texas generated over $4 billion in economic activity, while Florida saw a 15% increase in energy sector jobs, with nearly half of those coming from renewable energy projects like solar. Governors and legislatures in these states recognize that investments in solar energy drive local economies, create high-paying jobs, and generate tax revenue for schools and infrastructure.

Oklahoma Governor Kevin Stitt has openly supported the financial advantages of renewable energy, stating, “This is not about ideology—this is about money, jobs, and growth for our state."

The financial incentives tied to solar, including property tax abatements and federal grants, have been game-changers for rural counties. For example, counties in Texas with significant solar installations reported an 18% increase in local tax revenue, which directly benefits schools and public services.

In addition, solar's appeal has grown among conservative voters because of its potential to strengthen energy independence. By generating energy locally, states reduce reliance on foreign oil and out-of-state energy sources. The combination of economic benefits and a more secure energy grid is leading red states to champion renewable energy projects, solidifying solar as a bipartisan success story.

Chris Wright's Vision for an Inclusive Energy Future

A pivotal development in this landscape is the appointment of Chris Wright as the presumptive nominee for United States Secretary of Energy under President-elect Donald Trump. Wright, CEO of Liberty Energy, has a diverse background in the energy sector, including experience in nuclear, solar, geothermal, and oil and gas. His advocacy for an "all-of-the-above" energy strategy suggests a balanced approach that should foster continued growth in the solar industry.

Wright's perspective emphasizes the role of energy in improving human life expectancy and reducing poverty, aligning with the broader benefits of renewable energy adoption.

His leadership at the Department of Energy is anticipated to support policies that promote energy innovation and infrastructure development, potentially making 2025 a record year for solar energy deployment.

Economic Motivations Driving Solar Expansion

It's important to note that while Wright has expressed skepticism about the climate crisis, his focus remains steadfastly on economic growth and energy independence. He has stated, "I am 'all in on energy' – including oil, natural gas, nuclear, solar, and geothermal sources," emphasizing a comprehensive approach to energy development.

This economically driven perspective resonates with the approach of many red states, where the financial benefits of solar energy are increasingly recognized. For instance, Wyoming Governor Mark Gordon, a Republican, has been promoting climate-friendly energy projects, acknowledging the economic advantages they bring to the state,

The financial incentives associated with solar energy, including job creation, investment opportunities, and energy cost savings, are compelling factors that transcend political affiliations.

As Wright assumes his role, his emphasis on economic prosperity is expected to further accelerate the adoption of solar energy across the nation.

Technological Advancements and Future Outlook

Technological innovations have played a crucial role in reducing the cost of solar installations, making them more accessible to a broader population. The average cost of solar panel installation has decreased dramatically over the last five years.

Additionally, the federal Investment Tax Credit (ITC) allows businesses to deduct 30% to 50% of the installation cost directly from their federal tax bill, not just their taxable income. This distinction is crucial because many people mistakenly think tax credits function like deductions. The truth is far more powerful, as the ITC directly reduces your tax liability, effectively acting like cash in your pocket. Let’s break it down with a detailed example:

If you purchase a $1 million solar energy system and qualify for a 50% ITC, you receive a $500,000 tax credit, which directly reduces your tax bill—not your taxable income. For instance, if you owe $600,000 in taxes, the ITC slashes that amount by $500,000, leaving you with only $100,000 to pay. That’s a massive financial benefit upfront.

Looking ahead, there is hope that Trump’s proposed reinstatement of certain Tax Cuts and Jobs Act (TCJA) rules in 2025 will allow businesses to deduct 100% of a solar system's cost in the first year, combined with the ITC.

Here's how it could work:

1. Cost Basis Adjustment: Under the prospective TCJA rules, the deduction is based on the cost of the system minus 50% of the ITC. For a $1 million system with a 50% ITC, you adjust the cost basis by deducting 50% of the ITC ($500,000 ÷ 2 = $250,000). This leaves a cost basis of $750,000.
2. Tax Deduction Calculation: With a 21% corporate tax rate, you then multiply the $750,000 cost basis by 21%, resulting in $157,500 in tax savings.
3. Adding the ITC Benefit: In addition to the deduction, you still receive the $500,000 ITC. Combining these two benefits results in a total savings of $657,500 in the first year.

But the benefits don’t stop there. Most small businesses, though not all, qualify for the Rural Energy for America Program (REAP) grant, which can cover 50% of the system’s cost. For a $1 million system, that’s another $500,000 in savings.

Let’s Summarize the Total Benefits:

• $500,000 from the REAP grant
• $500,000 from the ITC
• $157,500 from the TCJA deduction

This totals $1,157,500, meaning your net cash flow in the first year is positive by $157,500.

Essentially, not only does the system pay for itself, but you walk away with more money than you started with—all while enjoying 25 years of free electricity.

Of course, these numbers are illustrative and subject to change based on individual circumstances, tax rates, and legislative updates. It's always wise to consult with a financial advisor or tax professional to understand how these benefits apply to your specific situation.

With opportunities like these, solar energy isn't just a smart environmental choice—it’s the ultimate financial investment. Whether your business is in Texas, Oklahoma, or any other state, the combination of tax credits, deductions, and grants makes solar a no-brainer.

The return on investment is unmatched, proving that going solar is a win-win for both the planet and your bottom line.

Looking ahead, projections indicate that the solar industry will continue its upward trajectory. Analysts expect about 42 GW of new solar capacity to be added in 2024, a growth of nearly 38% from 2023. This expansion is expected to be driven by ongoing technological advancements, supportive policies, and increasing consumer awareness of the economic and environmental benefits of solar energy.

Conclusion

The milestones achieved in 2024 underscore a transformative period for solar energy in the United States, particularly in red states where economic and policy factors have converged to drive significant growth.

Chris Wright's leadership as the anticipated Secretary of Energy brings a unique dynamic to the solar energy industry. While again, he is not a vocal advocate for addressing the climate crisis, Wright's relentless focus on economic returns positions him as a potent force for advancing solar energy.

His "all-of-the-above" energy strategy is less about ideological commitment to renewables and more about harnessing the financial potential of solar.

Wright’s approach resonates with an MBA-level analysis of market dynamics—where profitability and economic incentives drive decisions.

In this context, solar energy is no longer a fringe player but a mainstream, revenue-generating powerhouse. It thrives not because of environmental imperatives but because it makes undeniable economic sense. For investors, Wright's pragmatic focus on maximizing energy sector profitability signals opportunity. For the industry, his leadership provides a stable policy framework favoring scalable, financially rewarding solutions.

For these reasons, this author firmly believes that 2025 will not only be a record-breaking year for solar energy but also a pivotal moment for the industry and its investors. Solar will thrive—not despite Wright’s focus on money, but because of it—cementing its role as a cornerstone of America’s energy future.

Until next time.

Stay well. Swim strong!

Warmly,

David

A Former Fan Ready to Believe Again

P. P. S. ✝️🙏📖   If you don’t know who I am, my name is David Vogel, retired CEO turned LinkedIn influencer and Founder of the Church of Unity Society. Six mornings a week Live at 7 AM, I preach to the C-suite, igniting their spirits with the power of God. As the publisher of Mindful Ethics, the unapologetic voice of ethics on LinkedIn, I challenge leaders to elevate their game, lead with heart, and redefine what it means to live with purpose.

One More Thing . . .

As I recently retired as CEO of Project SunRize, I remain a trusted consigliere to my son, Evan, who now leads the company with the same dedication to excellence. Project SunRize is proudly donating 3% of all profits from commercial solar construction to The Church of Unity and 3% to The Council For Unity.

Here’s the kicker—100% of the cost for most solar energy systems can be covered by federal benefits (in most, but not all cases)!

Let Project SunRize prove to you it’s free!

Helping Project SunRize helps my church and also helps prevent violence in New York City Schools (via Council For Unity). If you know anyone who’s considering going solar, refer them to Project SunRize.

You’ll get a shark-sized royalty for your referral!

DM me, and I’ll personally make sure your message reaches the right person at SunRize.

Let’s build a brighter future, together!

https://sunrize.green/

© Published by: David Vogel, in Wolfeboro, New Hampshire