The Case for Solar Without the Tax Credit: Prioritizing Fiscal Responsibility

By Juan Fermin, NoSocialism.com

April 26, 2025

Solar energy empowers American homeowners to generate their own electricity, lower bills, and reduce reliance on monopoly utilities. Rooftop solar systems have proven their worth, keeping lights on during blackouts in Texas, wildfires in California, and hurricanes in Florida. These technologies align with conservative values of self-reliance and resilience, enabling families to take control of their energy needs without waiting on utilities or government aid. However, the federal investment tax credit (ITC) for solar, while well-intentioned, must be reconsidered in light of our nation’s fiscal crisis. There's a lot of support out there to keep these Tax Credits, but with annual deficits exceeding $1.9 trillion and a national debt surpassing $33 trillion, government spending must be curtailed to stabilize the economy and protect all Americans from the crushing effects of high interest rates.

The ITC, which offsets up to 30% of the cost of installing solar panels, is often framed as a pro-market policy. In reality, it’s a government subsidy that disproportionately benefits higher earners. Data shows the average income of households with residential solar installations exceeds $100,000, meaning the ITC largely subsidizes those who can already afford solar, make nearly double the average and adding to the federal deficit. Solar panel prices have plummeted by over 80% since 2010, making solar so affordable that most people can now finance a system over 15–20 years and end up with a payment that’s about the same—or even less—than their average electric bill. In Florida, for example, a homeowner with a $333 average monthly bill can finance a 14.5 kW system for around $344/month without the ITC, a gap that closes as electricity rates rise annually. People are increasingly motivated to own solar to achieve independence from the grid, avoid the grid’s annual rate increases, and, especially in Florida, ensure power during hurricane season outages. With solar prices continuing to fall practically every year, there’s little reason for the government to keep subsidizing an industry that can stand on its own.

"In 2024, the federal government spent over $700 billion on interest payments alone—more than the entire defense budget."

Continuing the ITC risks creating dependency, discouraging innovation, and propping up a mature industry that no longer needs it. More critically, it exacerbates our ballooning deficit. In 2024, the federal government spent over $700 billion on interest payments alone—more than the entire defense budget. The Congressional Budget Office projects deficits will average $2 trillion annually over the next decade, driving interest rates higher as the government competes for borrowing. High interest rates hurt everyone: families face steeper mortgage and auto loan payments, small businesses struggle to expand, and the cost of goods rises. For the average American—especially those earning far less than $100,000—these pressures outweigh the benefits of a tax credit that primarily aids wealthier households. By prioritizing fiscal discipline, we can lower interest rates, stabilize the economy, and create a rising tide that lifts all boats—not just those with solar panels.

Eliminating the ITC doesn’t mean abandoning solar. States can offer their own incentives, tailored to local needs, without adding to the federal deficit. Utilities can be pushed to streamline interconnection processes and fairly compensate homeowners for excess solar energy fed into the grid. Regulatory reforms, like cutting red tape for permitting and installation, would further reduce costs. These market-driven solutions align with conservative principles, fostering competition and innovation while keeping government out of the equation.

"The answer isn’t more federal spending—it’s breaking up monopolies, deregulating energy markets, and empowering consumers through choice."

Monopoly utilities, with their unchecked rate hikes and record profits, are a real problem. Pacific Gas and Electric’s $2.2 billion in 2023 profits, coupled with new fees and rate increases, shows how utilities exploit captive customers. But the answer isn’t more federal spending—it’s breaking up monopolies, deregulating energy markets, and empowering consumers through choice. Solar thrives in competitive environments, and homeowners shouldn’t need a tax credit to say “no” to utility greed.

Supporting solar means supporting ingenuity and independence, but it shouldn’t come at the expense of fiscal sanity. By phasing out the ITC, we can promote solar adoption through market reforms while tackling the deficit that threatens our economic future. High deficits and soaring interest rates hurt every American, from the solar-powered homeowner to the renter struggling with rising costs. It’s time to cut spending, unleash markets, and let solar shine on its own.

The Half Trillion Dollar Giveaway

The United States of America is on a course for self destruction on an unprecedented scale. At today's prices we are poised to transfer a Half Trillion Dollars of our wealth over to the Canadians, Mexico, Saudi Arabia, Nigeria, Venezuela, Dubai and the other countries that we import Oil from.
While Europe, you know those guys who scold us for not signing the Kyoto Protocol, is preparing to build dozens and dozens of Coal Fired Electrical plants, we haven't built a single one in 30 years. We've heard of ecological disasters if we do so, and yet, China has built over 1000 of them over the past decade. Where's the Global Warming? Instead the past 2 years have seen some of the coldest winters on record, with record snowfall in North America, some of which contributed towards the flooding in Colorado.
The U.S. has an estimated 800 Billion Barrels of oil, yet we're keeping most of it locked away for what? To help our Arab Friends?
In our rush to 'fix' something that we don't understand, we said we were doing it to help those least fortunate. The world's poor, and yet the poorest around the world are paying for our policies in the form of higher than ever food prices, and literally starving because of this. How many people will have to die before we do something?
We read story after story of Truckers leaving the Hauling business, Airlines dumping planes, and firing pilots, in February alone the U.S. lost 63,000 jobs, and yet what's being done?
In 2005, the U.S. Trade deficit was running at 60.9 Billion per month, of that almost half was Oil, and that was when Oil was 1/3rd of the price it is today! Yet as far back as 2005, Democrats in Congress were doing everything they could to either stop domestic drilling, or keep our country from expanding any kind of Fossil Fuels, and the picture hasn't changed at all today.
We see stories on the Discovery Channel on how Dubai and others are building Massive Gleaming Towers, even entire cities off the oil money that we are providing, while we lose thousands of jobs. Jobs that could be provided by a renewed Oil industry here in the U.S. and jobs that would be created by consumers actually having cash in their hands to spend. The average suburban household is now spending almost $300.00 a month more for gas than they did just 3 years ago, how many coffee shops will have to close, how many bakeries, how many electronics stores, hair salons, cell phone shops, how many stores in the Malls will have to close, because the American family must divert cash they once spent in their local neighborhoods and are now giving it to Venezuelan and Middle Eastern Thugs.
While demand for Gas is down, which in theory should lower prices, that hasn't happened because the speculators see the Democrats stopping any and every proposal to build Nuclear, Coal or any power plant for that matter. Even Solar powered plants are being hampered by excessive regulations. The speculators assume, rightly so, that the U.S. Economy needs more investments in energy, but this is not happening, so the claims of Barrack Obama and other Democrats that "drilling won't help for 10 years", is just foolishness. If the speculators see that we're doing something about the situation, they will start reducing or even liquidating their positions in Oil, and that will help reduce prices now.
I was at the supermarket yesterday talking to a woman in line about this, her response was that we shouldn't drill because she was sure they'd do something like come up with a Paint that generates Solar Power. When I said to her, but lady my $35,000.00 Sedan and my $45,000.00 SUV runs on Gas, am I just supposed to throw those away? Her response was that I should have thought about that when I bought those cars. I said, You've got to be kidding me? Gas was a 1/3rd the price it is today when I bought those cars. Besides that, even if they DID invent that magic Solar Spray paint. When will it go into production? We don't yet have the technology to replace fossil fuels, so do we just do without? And up north, next winter, do the people simply freeze to death because they don't have their Solar Powered heaters?
You see, that's the Democrats response. "Oh well, too bad you suburbanites, you should move to downtown and use public transportation". When you really think about it, this is an assault on the "Red State". The States where most of the population lives outside of town. Where most of the population has to drive long distances and where they have no public transportation. It's the Democrats way of pushing these people who are unaware of the games being played to vote Democrat next time. They're banking on the fact that most Americans will blame their woes on the President and by proxy his party. This is their strategy to win in November.

What can you do? Sign the Drill Here, Drill Now, Pay Less Petition. Also, participate in Operation Drill Bit, let's flood Washington with Drill bits along with a letter letting them know that we're on to them.

We all know that the future belongs to Solar, the question is will we get there in prosperity and in style, or will we get there, beaten broken and in misery.