The Battle for Solar's Future: Solar Manufacturing & Policy Insights from PanelClaw & CPS America | EP277

Today on the Clean Power Hour, host Tim Montague speaks with Costa Nicolau of PanelClaw and John Drummond of CPS America about the critical policy challenges facing the solar industry in 2025. Recorded at InterSolar San Diego, the conversation highlights the existential threat to energy credits that the solar and storage industries depend on.

Costa Nicolau, a long-time SEIA board member, delivers a passionate call to action for industry professionals to become more politically engaged as Congress considers significant budget cuts that could impact the ITC, IRA, and other vital solar incentives. The discussion emphasizes how these policies have successfully built American manufacturing capacity from nearly zero to over 50 gigawatts of solar module production and created thousands of jobs across red, blue, and purple states.

John Drummond provides insights on how CPS America is adapting to policy changes by developing new energy storage solutions, particularly in response to shifts like California's NEM 3.0. Both guests stress that solar offers immediate energy independence benefits that complement longer-term solutions like nuclear power, making it an essential component of American energy strategy.

The episode concludes with breaking news about a House vote signaling potential reconciliation package cuts of $4-4.5 trillion, placing all energy credits at risk. Don't miss this essential conversation about the future of American energy policy and how the solar industry must unite to protect its interests. Listen now to understand what's at stake and how you can help defend the progress we've made.

Social Media Handles

John Drummond
CPS America

Costa Nicolau

PanelClaw

Transcript

Costa Nicolau: 0:50

So if we want American energy independence, solar can give us more electrons today, natural gas can give us more electron electrons in a little bit, nuclear will give us more electrons in five to 10 years. We are the solution that can help utilities today with American electrons, with American energy credits. So our ability to defend these credits is predicated on the utilities thirst for new electrons. We can satisfy them today. The federal government thirst for jobs in manufacturing. We're creating them in every red and purple and blue state today.

intro: 1:29

Are you speeding the energy transition here at the Clean Power Hour, our host, Tim Montague, bring you the best in solar, batteries and clean technologies every week. Want to go deeper into decarbonization. We do too. We're here to help you understand and command the commercial, residential and utility, solar, wind and storage industries. So let's get to it together. We can speed the energy transition.

Tim Montague: 1:55

We're here at inner solar San Diego. I'm Tim Montague. Check out all of our content at cleanpowerhour.com Please give us a rating and a review on Apple or Spotify and follow us on YouTube. I'm here with John Drummond, with CPS and Costa miklow at panel claw, the number one rooftop racking company in America, and here we are in February of 2025 there's a lot of turbulence going on in America, and we're just going to set the table a little bit and highlight some things that we solar and storage professionals need to have in our awareness, because we cannot rest on our laurels. Right? The energy transition is going to happen. It's a question of how fast. So Costa, as we were saying in the pre show, you spend a lot of time in DC, on behalf of sei a on behalf of the industry. Tell us what your role is, sure.

Costa Nicolau: 2:49

First of all, thank you for having me. It's a pleasure, and thank you for being a very important voice. Important voice in this industry. And just a quick correction, you said number one in flat roof. Actually, our market share at the start of every year is zero, and we have to earn it from our partners every single year. So as far as Washington, DC is concerned, we've been on the SIA board. I've been on the SIA board for over a decade now with treasure resources. Know how blood, sweat and tears basically advocating on behalf of the industry. And if there were ever a time for companies to step it up in the sector and step up their membership with SIA, or join Sia, it is now we're facing an existential threat to every single energy credit that our industry relies on today. So if you're not a member of Sia, or if you are a member of Sia, up your game or join CEA today. We need every resource, every bit of treasure, every bit of voice, every bit of job creation to speak with one voice in front of Congress.

Tim Montague: 3:48

It sounds a little dire, but I I believe you are not exaggerating. So thank you, and I will echo that it is a critical time for us to be active in the industry. John, from your perspective, as a manager, as a major manufacturer in the US, what are you paying attention to when it comes to policy and what's going on in DC?

John Drummond: 4:12

Yeah, definitely. So we are, we are see a members. We're proud see a members. We're looking specifically at energy storage. So we've launched some new products aimed at energy storage, because we know that some of the tariffs, like nem three have changed. So it's not just PV anymore. You need to include, especially here in California, some energy storage capability for your projects. In order to be successful, you're losing money if you don't have that currently installed. Yeah, and

Tim Montague: 4:46

you know, we are enjoying the ITC and the IRA here in 2025 still 30% ITC up to 60% now the question is, how much of that will remain after the Trump Musk wrecking ball that has been unleashed in America?

Costa Nicolau: 5:05

Well, I would say that, look, we need American energy credits and American tax policy. And what we have today is industrial policy that's working. Before these energy credits were all put into place, we had almost no solar manufacturing in the United States to speak of today, we have over 50 gigawatts of module manufacturing capacity. Panel claw has over two gigawatts of domestic content racking by ourselves in the United States of America, in 12 states. So these policies are working. They're creating jobs. They're creating over $40 billion in investment already, and counting. That's just last year. So these policies are not only effective, they're creating domestic manufacturing jobs. On the other end of it, on the demand side, the. Utilities, which used to fight solar for almost my entire career in the sector, are now our friends. You know why? Because energy demand in the United States has gone through the roof. So if we want American energy independence, solar can give us more electrons today, natural gas can give us more electron electrons in a little bit, nuclear will give us more electrons in five to 10 years, we are the solution that can help utilities today, with American electrons, with American energy credits. So our ability to defend these credits is predicated on the utilities thirst for new electrons. We can satisfy them today. The Federal Government thirst for jobs in manufacturing. We're creating them in every red and purple and blue state today, and a tremendous amount of investment in, again, American electrons. So if I'm a member of Congress today and I'm speaking to them, you want to get re elected in the midterms, preserve the American energy credits, we will help you run the victory lap. It

Tim Montague: 6:53

really does mean jobs and revenue for your state. You know, just solar panel manufacturing, for example, right? We went from like five to 45 gigawatts of domestic solar panel manufacturing thanks to the IRA and these are high wage jobs. So it's, it's really good, and most of it's happening in red states

Costa Nicolau: 7:18

and purple states. Yeah, Wisconsin, Illinois, Indiana, Pennsylvania, that's just some of the places where we work, West Virginia. So you know, it's, it's important to every member of Congress, New York, Massachusetts. So I don't care if you're an independent, a Democrat or a Republican, we're creating jobs in the United States of America for American electrons to produce, to be produced here. So I think period

Tim Montague: 7:41

the take home is join and be active in sia and talk to your congressman, because they matter. And we, our future lies in the balance. It's not a question of yes or no, are we going to have solar or not? It's just a question of how fast we're going to make the energy transition, and faster is better. Any closing thoughts, John,

John Drummond: 8:05

I would just say, you know, again, proud member of CEO, continue to produce PV, install PV. It's the way of the future.

Costa Nicolau: 8:15

Yeah. And John, I would also say to anybody that's listening breaking news, if you weren't watching the news last night, the House of Representatives on a 217, to 215 vote passed a big, beautiful bill. So they now go not passed it. They're going after the big, beautiful single reconciliation package. So they got to find four to $4.5 trillion in cuts. And that's why I was saying earlier, everything is on the table. We're defending 20 5d we're defending 40 8e we're defending 45x we're defending 40 5y all of it is on the table. If you're at this conference here and you care about the demand side and the manufacturing side, you have to call Congress. You have to join Sia. Our voices need to be united today, because everything is on the table and we cannot take it for granted. We have a phenomenal story. We got to tell it together, and we got to tell it now. Thank you.

Tim Montague: 9:05

Costa Nicolau and John Drummond. I'm Tim Montague. Check out all of our content at cleanpowerhour.com. Please give us a rating and a review on Apple or Spotify and follow us on YouTube. With that, I'll say, let's grow solar and storage. The Clean Power Hour is brought to you by CPS America, maker of North America's number one three phase string inverter with over eight gigawatts shipped in the US. The CPS product lineup includes string inverters ranging from 25 kW to 350 kW, their flagship inverter, the CPS, 350 KW is designed to work with solar plants ranging from two megawatts to two gigawatts. CPS is the world's most bankable inverter brand and is America's number one choice for solar plants, now offering solutions for commercial utility ESS and Balance of System Requirements, go to chintpowersystems.com or call 855-584-7168, to find out more, you.