Di Yi Cai Jing·2025-07-04 14:54Core Points - The "One Big Beautiful Bill Act" has been passed by both houses of Congress and awaits President Trump's signature to become law [1][2] - The act will terminate investment tax credits (ITC) and production tax credits (PTC) for solar projects seven years earlier than originally planned, ending in 2025 instead of 2032 [2][3] Industry Impact - The passage of the act is expected to increase construction costs for wind and solar projects in the U.S. by 10% to 20%, according to Rhodium Group [3] - The uncertainty created by the new policy may deter investment in renewable energy projects that rely on subsidies, potentially leading to a "chilling effect" on the sector [3] - Projects that face delays due to various uncontrollable factors may lose their eligibility for subsidies, further discouraging developers and financiers [3] Company Responses - Trina Solar has stated that it has recovered all investment costs in its U.S. factory through a partnership with FREYR and does not foresee significant impacts from the subsidy reductions [4] - Longi Green Energy reported that its joint venture factory in the U.S. is operating well, with products being manufactured locally, ensuring better supply stability [4] - Companies are advised to prepare for a loss of support for clean energy projects in the U.S. and to diversify their international investments [4] Market Trends - Chinese solar and storage companies are increasingly looking to invest in the Middle East, with TCL Zhonghuan planning a $2.08 billion investment in Saudi Arabia for a 20GW solar wafer project [5] - JinkoSolar has announced a $985 million joint venture in Saudi Arabia to build a 10GW high-efficiency solar cell and module project [5] - Other leading companies in the solar industry have also announced plans for factories in the Middle East [5]