PVTIME – The Solar Energy Industries Association (SEIA) has launched a policy blueprint titled ‘Strengthening US Grid Reliability Through Solar and Storage’, which highlights eight priority areas that the association deems vital for local, state, and federal authorities to address the soaring energy demands of artificial intelligence, data centres, and new American innovations.
SEIA’s President and CEO, Abigail Ross Hooper, stressed that grid reliability and the US’s ability to meet future energy needs depend on increasing the proportion of solar and storage in the energy mix. She noted that reliable, low-cost solar and storage now account for the majority of new power generation under development in the US, and urged policymakers at all levels to introduce practical grid-strengthening policies to accelerate their deployment, if the administration is to succeed in the AI race.
The eight policies cover:
boosting domestic manufacturing and supply chains to enhance US self-sufficiency in solar and storage production, creating regulatory fast-tracks for solar and storage projects to quickly meet data centre energy needs, reforming utility interconnection processes to improve grid access efficiency, modernising transmission infrastructure for stable power delivery, investing in long-duration storage to address energy retention challenges, overhauling wholesale electricity markets to optimise resource allocation, updating utility Integrated Resource Plans (IRPs) for better energy planning, and incentivising distributed energy solutions such as virtual power plants (VPPs) and microgrids to boost energy flexibility.
Recent shifts in US renewable energy policy have presented challenges. The budget reconciliation act passed in July ended federal incentives for new renewable power projects earlier than expected, and a subsequent executive order imposed stricter credit eligibility rules. The Foreign Entity of Concern (FEOC) rule also affects manufacturing by barring Chinese components or materials backed by China from US solar supply chains if companies wish to receive the 45X Advanced Manufacturing Tax Credit. Although storage deployment is less affected, FEOC restrictions still apply to battery manufacturers.
Despite these changes, the US Energy Information Administration (EIA) predicts that the US will add almost 40GW of solar PV capacity and over 18GW of new energy storage by the end of 2025. However, the SEIA forecasts slower market growth in the coming years due to the policy adjustments in the budget act, with US solar PV installations set to be 21% lower by 2030 than under previous policies.
Notably, solar and storage accounted for 82% of all new US power capacity added in the first half of the year. With US electricity demand rising, especially from AI and data centres, solar and storage remain an affordable, fast solution for energy growth. The SEIA has stated that it will advocate for its policy agenda at state and federal levels, and the impact of these efforts will be closely monitored.
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