Federal solar ban shields U.S. makers—but may cost taxpayers more
H.R. 1167 — Keep China Out of Solar Energy Act of 2025 · Filed by Carlos Gimenez (R-FL) · 1 cosponsor · Introduced Feb 10, 2025 · Referred to committee
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What it does
This bill prohibits federal agencies from buying solar panels manufactured or assembled by Chinese companies or entities controlled by the Chinese government. Within 180 days, the Office of Management and Budget must create rules to block federal contracts, subcontracts, grants, and government purchase cards from funding Chinese-made solar panels. Agencies can request waivers only if they certify that Chinese panels are the only viable option and the State Department and Department of Homeland Security jointly approve.
Why we flagged it
The bill's core mechanism is a procurement restriction designed to shield U.S. solar manufacturers from Chinese competition by blocking federal purchases of Chinese-made panels. While framed as national security, the primary effect is to create a protected market for domestic producers.
What the text implies
- Federal solar projects may face higher costs if domestic manufacturers cannot match Chinese pricing, potentially slowing renewable energy adoption on federal properties and increasing taxpayer burden.
- The waiver process requires joint approval from State and DHS, creating a high bar for exceptions and potentially leaving agencies unable to complete projects if domestic alternatives are unavailable or unaffordable.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. solar panel manufacturers (First Solar, Sunpower, Enphase Energy); Domestic solar installation and supply-chain companies; U.S. polysilicon and component suppliers