Recently, U.S. President Trump signed an executive order reversing the decision made during the Biden administration to include solar photovoltaic (PV) modules and electrolyzers under the Defense Production Act (DPA).
The Defense Production Act grants the President the authority to expand and accelerate the supply of materials and services from the domestic industrial base. In 2022, the Biden administration decided to include the production of solar PV modules, electrolyzers, and other related items under the DPA to rapidly scale up the manufacturing of critical clean energy infrastructure domestically. At that time, the Biden administration also allocated $500 million under the Inflation Reduction Act to specifically fund the production of these technologies.
However, Trump’s revocation of the related order cited reasons that these actions are essential for advancing U.S. policy, restoring rationality in the federal government, and unleashing the potential of U.S. citizens. Nevertheless, industry analysts believe that there may be more complex considerations behind this decision.
With the effectiveness of Trump’s executive order, the manufacturing of solar PV modules and components, electrolyzers, and other key clean energy products will no longer enjoy the policy support of the Defense Production Act. In recent years, the U.S. solar industry has developed rapidly. Data shows that in 2024, solar energy accounted for 81.5% of the newly installed power generation capacity in the United States, far exceeding that of natural gas and nuclear energy. After being removed from the Defense Production Act, the U.S. solar industry may face more challenges in expanding production scale, obtaining financial support, and other aspects, and the stability of its development may also be impacted.
