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.

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John Drummond
CPS America

Costa Nicolau

PanelClaw

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Episode Transcript

Costa Nicolau (00:00):
So if we want American energy independence,

(00:02):
solar can give us more electronstoday, natural gas can give us
more electron electrons in alittle bit, nuclear will give us
more electrons in five to 10years. We are the solution that
can help utilities today withAmerican electrons, with
American energy credits. So ourability to defend these credits
is predicated on the utilitiesthirst for new electrons. We can

(00:27):
satisfy them today. The federalgovernment thirst for jobs in
manufacturing. We're creatingthem in every red and purple and
blue state today.

intro (00:38):
Are you speeding the energy transition here at the
Clean Power Hour, our host, TimMontague, bring you the best in
solar, batteries and cleantechnologies every week. Want to
go deeper into decarbonization.
We do too. We're here to helpyou understand and command the
commercial, residential andutility, solar, wind and storage
industries. So let's get to ittogether. We can speed the

(01:00):
energy transition.

Tim Montague (01:04):
We're here at inner solar San Diego. I'm Tim
Montague. Check out all of ourcontent at cleanpowerhour.com
Please give us a rating and areview on Apple or Spotify and
follow us on YouTube. I'm herewith John Drummond, with CPS and
Costa miklow at panel claw, thenumber one rooftop racking
company in America, and here weare in February of 2025 there's

(01:28):
a lot of turbulence going on inAmerica, and we're just going to
set the table a little bit andhighlight some things that we
solar and storage professionalsneed to have in our awareness,
because we cannot rest on ourlaurels. Right? The energy
transition is going to happen.
It's a question of how fast. SoCosta, as we were saying in the

(01:48):
pre show, you spend a lot oftime in DC, on behalf of sei a
on behalf of the industry. Tellus what your role is, sure.

Costa Nicolau (01:58):
First of all, thank you for having me. It's a
pleasure, and thank you forbeing a very important voice.
Important voice in thisindustry. And just a quick
correction, you said number onein flat roof. Actually, our
market share at the start ofevery year is zero, and we have
to earn it from our partnersevery single year. So as far as
Washington, DC is concerned,we've been on the SIA board.
I've been on the SIA board forover a decade now with treasure

(02:20):
resources. Know how blood, sweatand tears basically advocating
on behalf of the industry. Andif there were ever a time for
companies to step it up in thesector and step up their
membership with SIA, or joinSia, it is now we're facing an
existential threat to everysingle energy credit that our
industry relies on today. So ifyou're not a member of Sia, or

(02:43):
if you are a member of Sia, upyour game or join CEA today. We
need every resource, every bitof treasure, every bit of voice,
every bit of job creation tospeak with one voice in front of
Congress.

Tim Montague (02:57):
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 beactive in the industry. John,
from your perspective, as amanager, as a major manufacturer
in the US, what are you payingattention to when it comes to

(03:18):
policy and what's going on inDC?

John Drummond (03:21):
Yeah, definitely.
So we are, we are see a members.
We're proud see a members. We'relooking specifically at energy
storage. So we've launched somenew products aimed at energy
storage, because we know thatsome of the tariffs, like nem
three have changed. So it's notjust PV anymore. You need to
include, especially here inCalifornia, some energy storage

(03:44):
capability for your projects. Inorder to be successful, you're
losing money if you don't havethat currently installed. Yeah,
and

Tim Montague (03:55):
you know, we are enjoying the ITC and the IRA
here in 2025 still 30% ITC up to60% now the question is, how
much of that will remain afterthe Trump Musk wrecking ball
that has been unleashed inAmerica?

Costa Nicolau (04:15):
Well, I would say that, look, we need American
energy credits and American taxpolicy. And what we have today
is industrial policy that'sworking. Before these energy
credits were all put into place,we had almost no solar
manufacturing in the UnitedStates to speak of today, we
have over 50 gigawatts of modulemanufacturing capacity. Panel

(04:35):
claw has over two gigawatts ofdomestic content racking by
ourselves in the United Statesof America, in 12 states. So
these policies are working.
They're creating jobs. They'recreating over $40 billion in
investment already, andcounting. That's just last year.
So these policies are not onlyeffective, they're creating
domestic manufacturing jobs. Onthe other end of it, on the

(04:57):
demand side, the. Utilities,which used to fight solar for
almost my entire career in thesector, are now our friends. You
know why? Because energy demandin the United States has gone
through the roof. So if we wantAmerican energy independence,
solar can give us more electronstoday, natural gas can give us
more electron electrons in alittle bit, nuclear will give us

(05:17):
more electrons in five to 10years, we are the solution that
can help utilities today, withAmerican electrons, with
American energy credits. So ourability to defend these credits
is predicated on the utilitiesthirst for new electrons. We can
satisfy them today. The FederalGovernment thirst for jobs in

(05:39):
manufacturing. We're creatingthem in every red and purple and
blue state today, and atremendous amount of investment
in, again, American electrons.
So if I'm a member of Congresstoday and I'm speaking to them,
you want to get re elected inthe midterms, preserve the

(05:59):
American energy credits, we willhelp you run the victory lap. It

Tim Montague (06:03):
really does mean jobs and revenue for your state.
You know, just solar panelmanufacturing, for example,
right? We went from like five to45 gigawatts of domestic solar
panel manufacturing thanks tothe IRA and these are high wage
jobs. So it's, it's really good,and most of it's happening in

(06:26):
red states

Costa Nicolau (06:27):
and purple states. Yeah, Wisconsin,
Illinois, Indiana, Pennsylvania,that's just some of the places
where we work, West Virginia. Soyou know, it's, it's important
to every member of Congress, NewYork, Massachusetts. So I don't
care if you're an independent, aDemocrat or a Republican, we're
creating jobs in the UnitedStates of America for American

(06:47):
electrons to produce, to beproduced here. So I think period

Tim Montague (06:51):
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'snot a question of yes or no, are
we going to have solar or not?
It's just a question of how fastwe're going to make the energy
transition, and faster isbetter. Any closing thoughts,
John,

John Drummond (07:14):
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 (07:24):
Yeah. And John, I would also say to anybody that's
listening breaking news, if youweren't watching the news last
night, the House ofRepresentatives on a 217, to 215
vote passed a big, beautifulbill. So they now go not passed
it. They're going after the big,beautiful single reconciliation
package. So they got to findfour to $4.5 trillion in cuts.

(07:45):
And that's why I was sayingearlier, everything is on the
table. We're defending 20 5dwe're defending 40 8e we're
defending 45x we're defending 405y all of it is on the table. If
you're at this conference hereand you care about the demand
side and the manufacturing side,you have to call Congress. You
have to join Sia. Our voicesneed to be united today, because

(08:06):
everything is on the table andwe cannot take it for granted.
We have a phenomenal story. Wegot to tell it together, and we
got to tell it now. Thank you.

Tim Montague (08:15):
Costa Nicolau and John Drummond. I'm Tim Montague.
Check out all of our content atcleanpowerhour.com. Please give
us a rating and a review onApple or Spotify and follow us
on YouTube. With that, I'll say,let's grow solar and storage.
The Clean Power Hour is broughtto you by CPS America, maker of

(08:37):
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eight gigawatts shipped in theUS. The CPS product lineup
includes string invertersranging from 25 kW to 350 kW,
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(08:59):
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