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You can take advantage of rising inventory.
First of all, I want everyone to just take a deep breath and calm down.
Despite data that indicates much slower sales than many anticipated, the American electric vehicle market is not collapsing before it ever really took off. EVs are not failed experiments, public and private investments into battery plants and public chargers are not about to evaporate, and we are not collectively doomed to be driving coal-rolling trucks for lack of a better option until we’ve extinguished most non-cockroach life on this planet.
Three things are true, however. The first is that EVs remain expensive like any new technology, and while that means they aren’t flying off dealer lots in record time, sales are still growing fast — including globally. The second is that Tesla is still posting record revenues and huge sales. Its rapid-fire price cuts have paid off handsomely; the Model 3 and Model Y are lapping everyone else in the EV race because they’re screaming deals. That fact alone has me not worried about declining EV demand.
The third thing is that now may actually be a good time to buy an EV, if you know where to look.
Do you feel better now?
EV adoption remains a long-term (though increasingly difficult) goal for many automakers. More EVs are coming and prices are expected to drop over time as the technology develops and batteries are built stateside. But while immediate action is needed on multiple fronts to reduce carbon emissions, it’s tough to ask many families to spend $60,000 on a Hyundai in this economy. And EVs piling up at car dealerships reflects this trend, but it doesn’t reflect a lack of interest, experts told me.
“I don't think that's fair to say no one wants EVs,” said Brian Moody, the executive editor of Cox Automotive, the research firm that sounded the alarm about EV inventory increasing. “I don't think that's accurate.”
Moody added, “One thing that we see is that about 50% of shoppers say they're open to the idea of getting an electric car, so that's a pretty good number and that probably bodes well for the future. But that doesn't necessarily translate to sales tomorrow.”
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Cox Automotive’s data indicates U.S. car dealers had a more than 100-day supply of EVs on their lots on average by the end of June — 60 days is considered healthy — and the average EV lists for $63,486. So at a time when interest rates are high and car buyers’ budgets are squeezed, Moody said they may find a $36,000 Hyundai Sonata Hybrid more appealing than a $50,000 fully electric Hyundai Ioniq 6. “I think the good thing about EVs today is they provide consumers a choice,” he said.
Tom McParland has firsthand experience helping buyers to navigate these choices. He runs a consulting service that helps people purchase cars and contributes car-buying advice columns to publications like Jalopnik. (Full Disclosure: I was previously editor-in-chief of that site, where he was one of our contributors.) His service helps about 20 to 30 people a month to buy a car.
McParland said that last year, he was turning away customers who wanted to buy a Ford F-150 Lightning or a Mustang Mach-E because there were none to be found or because dealer markups were so extraordinarily high.
Now, he’s seen a “mixed bag” lately when it comes to EVs: “If I look at how many of my clients in 2023 are requesting EVs or plug-in [hybrids], there’s definitely an uptick overall compared to last year,” he said. However, “as soon as the tax credit rules changed, I saw a big dropoff in the level of interest for those cars,” he said. “Nobody was asking me for Ioniq 5s,” he added, referring to Hyundai’s cyberpunk-looking Model Y competitor.
For a few months at the start of the year, nearly every EV qualified for generous tax breaks. But by spring, only North American-built cars with North American-built batteries could get the incentives, excluding options from Kia, Hyundai, Volvo, BMW, Toyota, and others. And while car dealers don’t want those cars taking up space on lots forever, there’s only so much they can do — or are willing to do, McParland said.
“Dealers can only go so deep until the math no longer makes sense,” he said. “They are not going to discount that car 20% and lose 50% on the back end just to move it.” Also, while a kind of loophole allows more brands to qualify for tax breaks if they’re leased, McParland said he’s a bit skeptical that this always equals a good deal because the price cuts are baked into a lower residual value at the end of your term.
But it’s not that buyers aren’t willing to go green at all. To Moody’s point about hybrids, McParland said he’s seen a huge spike in buyer interest in those cars this year.
“If somebody comes to me looking for a Honda, they don't care about a gas Honda,” he said. “They want an Accord Hybrid, or they want a CR-V hybrid. Because the price delta between the gas and the hybrid version is not much.”
That’s a net positive for the planet. Hybrid cars are still a remarkable tool for reducing emissions right now in ways that may be easier to live with until a more robust EV charging network gets built out. Having said that, McParland told me to forget about deals on hybrid cars. “There’s no deals there because the demand is so high,” he said.
So where can you get deals on a green car right now, especially one that doesn’t use gasoline at all?
Some cursory hunting revealed a number of 2022 model-year EVs that are still “new” cars — maybe they’ve been at the dealership that long and just have a few hundred or thousand miles on them — and are going for almost fire-sale prices. Take this 2022 Hyundai Ioniq 5 with just 2,562 miles for a very tempting $40,000 even (about $6,000 to $10,000 off the average price.) Or this Kia EV6 with 7,353 miles and a $37,991 price tag. I’d seen a few examples recently of the Mustang Mach-E that also fit that bill.
There’s also still the Chevrolet Bolt, which is soon to be discontinued and has some outdated charging tech but is going out with a mid-$20,000 fire-sale bang. Not only are they eligible for the full $7,500 tax credit, but some states are giving extra incentives. In Colorado, for instance, you might be able to pick up one of the last new Bolts for around $15,000 after all the tax credits kick in.
On the manufacturer's side, Ford slashed the prices of the F-150 Lightning pickup (after raising them this year amid supply chain issues) by up to $10,000 this week, leaving the base Lightning Pro at $51,990. Now, that’s still more expensive than it was a year ago, but hey, a deal’s a deal. (It’s also eligible for the full $7,500 tax credit.)
McParland added that he’s seen some more aggressive deals on BMW and Mercedes-Benz’s electric models as part of their summer sales events as well. One reason might be that neither automaker has any fully electric car that qualifies for a U.S. tax credit at the moment. (For the record, I’m a fan of BMW’s i4 electric sport sedan, and other people seem to be too; BMW’s actually doing very well on the EV sales front this year.)
“We're seeing some manufacturer incentives… more so on the higher end of the market,” McParland said. So maybe not great news if you want a commuter on a budget, but not bad if you can stand to treat yourself a bit.
And there’s always Tesla. While McParland said some of his customers have been turned off by the CEO’s recent antics or just want some variety — “People have come to me, and this is the exact conversation. I want EV but I don't want to buy a Tesla, that sort of thing,” he said — the fact is that the cars’ specs are still among the best out there. So are the deals. Between Tesla’s own price cuts and the EV tax incentives, these are hot sellers for good reason right now. “And you’ve got people looking into used ones now that there are so many out there,” McParland said.
Moody added that there are other ways to save on EV ownership besides just the car, too. Many manufacturers offer deals on home chargers or are throwing them in for free. There are also state and federal tax incentives to help cover the cost of charging. “I would not just call a place someplace up and buy [a charger,]” he said. “I would do a lot of research and see if I could get one for free or at a discounted rate.”
Finally, McParland said patience may be a virtue as the year goes on and new model-year cars hit dealerships. That’s when they get more aggressive at moving the older stuff.
“My prediction is that as we start to get closer to the fall, the deals might even get better than they are now,” he said. “I think we're still in the early stages of this ‘too much inventory’ situation.”
America is past the “early adopter” stage of EVs, when people were evangelizing gas-free cars but had few choices and terrible options for living with them. But we’re not in the critical mass stage, either. Getting to that point could take a number of years; transitioning to zero-emission transportation was never going to happen overnight, even if we need it to.
In the meantime, if you see EV ownership in your future, be on the lookout for great deals as much as you are for public chargers near your place.
Read more about EVs:
Tesla Is Still Winning the EV Race
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Investing in red states doesn’t make defying Trump any safer.
In the end, it was what the letters didn’t say.
For months — since well before the 2024 election — when asked about the future health and safety of the clean energy tax credits in the Inflation Reduction Act, advocates and industry folks would point to the 20 or so House Republicans (sometimes more, sometimes fewer) who would sign on to public statements urging their colleagues to preserve at least some of the law. Better not to pull out the rug from business investment, they argued. Especially not investment in their districts.
These letters were “reassuring to a lot of folks in clean energy and climate communities,” Chris Moyer, the founder of Echo Communications and a former staffer for longtime Senate Majority Leader Harry Reid, told me.
“I never felt reassured,” Moyer added.
Plenty of people did, though. The home solar company Sunrun, for instance, told investors in a presentation earlier this monththat a “growing number of Republicans in Congress — including 39 overall House members and four Senators — publicly support maintaining energy tax credits through various letters over the past few months.” The company added that “we expect a range of draft proposals to be issued, possibly including draconian scenarios, but we expect any extreme proposals will be moderated as they progress.”
Instead, the draft language got progressively worse for the residential solar industry, with the version that passed the House Thursday morning knocking billions of dollars off the sector, as tax credits were further squeezed to help make room for other priorities that truly posed an existential threat to the bill’s passage.
What Sunrun and others appear to have failed to notice — or at least publicly acknowledge — is that while these representatives wanted to see tax credits preserved, they never specified what they would do if their wishes were disregarded. Unlike the handful of Republicans who threatened to tank the bill over expanding the deduction for state and local taxes (each of whom signed one of the tax credit letters, at some point), or the Freedom Caucus, who tend to vote no on any major fiscal bill that doesn’t contain sizable spending cuts (so, until now, every budget bill), the tax credit Republicans never threatened to kill the bill entirely.
Ultimately, the only Republicans to outright oppose the bill did so because it didn’t cut the deficit enough. All of the House Republicans who signed letters or statements in support of clean energy tax credits voted yes on the legislation, with a single exception: New York’s Andrew Garbarino, who reportedly slept through the roll call. (He later said he would have voted for it had he been awake.)
“The coalition of interests effectively persuaded Republican members that tax credits were driving investment in their districts and states,” Pavan Venkatakrishnan, an infrastructure fellow at the Institute for Progress, told me in a text message. “Where advocates fell short was in convincing them that preserving energy tax credits — especially for mature technologies Republicans often view skeptically — should take precedence over preventing Medicaid cuts or addressing parochial concerns like SALT.”
The Inflation Reduction Act itself was, after all, advanced on a party-line basis, as was Biden’s 2021 American Rescue Plan. Combined, those two bills received a single Democratic no vote and no Republican yes votes.
In the end, Moyer said, Republican House members in the current Congress were under immense political pressure to support what is likely to be the sole major piece of legislation advanced this year by President Trump — one that contained a number of provisions, especially on SALT, that they agreed with.
“There are major consequences for individual house members who vote against the president’s agenda,” Moyer said. “They made a calculation. They knew they were going to take heat either way. They would rather take heat from clean energy folks and people affected by the projects.”
It wasn’t supposed to be this way.
White House officials and outside analysts frequently touted job creation linked to IRA investments in Republican House districts and states as a tangible benefit of the law that would make it politically impossible to overturn, even as Congress and the White House turned over.
“President’s Biden’s policies are leading to more than 330,000 new clean energy jobs already created, more than half of which are in Republican-held districts,” White House communications director Ben LaBolt told reporters last year, previewing a speech President Biden would give on climate change.
Even after Biden had been defeated, White House climate advisor Ali Zaidi told Bloomberg that “we have grown the political consensus around the Inflation Reduction Act through its execution,” citing one of the House Republican letters in support of the clean energy tax credits.
One former Biden White House climate official told me that having projects in Republican districts was thought by the IRA’s crafters to make the bill more politically sustainable — but only so much.
“A [freaking] battery factory is not going to save democracy,” the official told me, referencing more ambitious claims that the tax credits could lead to more Democratic electoral victories. (The official asked to remain anonymous in order not to jeopardize their current professional prospects.) Instead, “it was supposed to make it slightly harder for Republicans to overturn the subsidies.”
Congresspeople worried about jobs weren’t supposed to be the only things that would preserve the bill, either, the official added. Clean energy and energy-dependent sectors, they thought, should be able to effectively advocate for themselves.
To the extent that business interests were able to win a hearing with House Republicans, they were older, more traditionally conservative industries such as nuclear, manufacturing, agriculture, and oil and gas.The biofuels industry (i.e. liquid Big Agriculture) won an extension of its tax credit, 45Z. The oil and gas industry’s favored measure, the 45Q tax credit for carbon sequestration, was minimally fettered. Nuclear power was the one sector whose treatment notably improved between the initial draft from the House’s tax-writing committee and the version voted on Thursday. Advanced nuclear facilities can still claim tax credits if they start construction by 2029, while other clean energy projects have to start construction within 60 days of the bill’s passage and be in service by the end of 2028.
“I think these outcomes are unsurprising. In places where folks consistently engaged, things were protected,” a Republican lobbyist told me, referring to manufacturing, biofuels, and nuclear power, requesting anonymity because they weren’t authorized to speak publicly. “But assuming a project in a district would guarantee a no vote on a large package was always a mistake.”
“The relative success of nuclear is a testament to the importance of having strong champions — predictable but notable show of political might,” a second Republican lobbyist told me, who was also not allowed to speak publicly about the bill.
But all hope isn’t lost yet. The Senate still has to pass something that the House will agree with. Some senators had made noises about how nuclear, hydropower, and geothermal were treated in the initial language.
“Budget reconciliation is, first and foremost, a fiscal exercise,” Venkatakrishnan told me. “Energy tax credits offer a path of least resistance for hitting lawmakers’ fiscal targets. As the Senate takes up this bill, the case must be made that the marginal $100 billion to $200 billion in cuts seriously jeopardizes grid reliability and energy innovation.” Whether that will be enough to generate meaningful opposition in the Senate, however, is the $600 billion question.
A loophole created by the House Ways and Means text disappeared in the final bill.
Early this morning, the House of Representatives launched a full-frontal assault on the residential solar business model. The new language in the budget reconciliation bill to extend the Tax Cuts and Jobs Act passed Thursday included even tighter restrictions on the tech-neutral investment tax credits claimed by businesses like Sunrun when they lease solar systems to residential buyers.
While the earlier language from the Ways and Means committee eliminated the 25D tax credit for those who purchased home solar systems after the end of this year (it was originally supposed to run through 2034), the new language says that no credit “shall be allowed under this section for any investment during the taxable year” (emphasis mine) if the entity claiming the tax credit “rents or leases such property to a third party during such taxable year” and “the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property.”
This is how you kill a business model in legislative text.
“Expect shares of solar companies to take a significant step back,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Thursday morning, calling the exclusion “scathing.” Investors are “losing the now false sense of security that we had 'seen the worst' of it with the initial House draft.”
Joseph Osha, an analyst for Guggenheim, agrees. “Considering the fact that ~70% of the residential solar industry is now supported by third-party (e.g. lease or PPA) financing arrangements, the new language is disastrous for the residential solar industry,” he wrote in a note to clients. “We believe the near-term implications are very negative for Sunrun, Enphase, and SolarEdge.”
Shares of Sunrun are down 37.5% in mid-day trading, wiping off almost $1 billion worth of value for its shareholders. The company did not respond to a request for comment. Shares of fellow residential solar inverter and systems Enphase are down 20%, while residential solar technology company SolarEdge’s shares are down 24.5%.
“Families will lose the freedom to control their energy costs,” Abigail Ross Hopper, chief executive of the Solar Energy Industries Association, said in a statement, in reference to the last-minute alteration to the investment tax credit.
When the House Ways and Means Committee released the initial language getting rid of 25D by the end of this year but keeping a limited version of the investment tax credit, analysts noted that Sunrun was an unexpected winner from the bill. It typically markets its solar products as leases or power purchase agreements, not outright sales of the system.
The reversal, Dumoulin-Smith wrote, “comes as a surprise especially considering how favorable the initial markup was” to the Sunrun business model.
“Our core solar service offerings are provided through our lease and power purchase agreements,” the company said in its 2024 annual report. “While customers have the option to purchase a solar energy system outright from us, most of our customers choose to buy solar as a service from us through our Customer Agreements without the significant upfront investment of purchasing a solar energy system.”
The new bill, Dumoulin-Smith writes is “‘leveling the playing field’ by targeting all future residential solar originations, whether leased or owned.” The bill is “negative to Sunrun with intentional targeting of the sector.
Last year, Sunrun generated over $700 million from transferring investment tax credits from its solar and storage projects. The company said that it had $117 million of “incentives revenue” in 2024, which includes the tax credits, out of around $1.4 billion in total revenue.
But the tax credits play a far larger role in the business than just how they’re recognized on the company’s earnings statements. The company raises investment funds to help finance the projects, where investors get payments from customers as well as monetized tax credits. Fund investors “can receive attractive after-tax returns from our investment funds due to their ability to utilize Commercial ITCs,” the company said in its report. Conversely, the financing “enables us to offer attractive pricing to our customers for the energy generated by the solar energy system on their homes.”
Morgan Stanley analyst Andrew Perocco wrote to clients that “this is a noteworthy change for the residential solar industry, and Sunrun in particular, which dominates the residential solar [third-party owned] market and has recognized ITC credits under 48E.”
Current conditions: A late-season nor’easter could bring minor flooding to the Boston area• It’s clear and sunny today in Erbil, Iraq, where the country’s first entirely off-grid, solar-powered village is now operating • Thursday will finally bring a break from severe storms in the U.S., which has seen 280 tornadoes more than the historical average this year.
1. House GOP passes reconciliation bill after late-night tweaks to clean energy tax credits
The House passed the sweeping “big, beautiful” tax bill early Thursday morning in a 215-214 vote, mostly along party lines. Republican Representatives Thomas Massie of Kentucky and Warren Davidson of Ohio voted no, while House Freedom Caucus Chair Andy Harris of Maryland voted “present;” two additional Republicans didn’t vote.
The bill will effectively kill the Inflation Reduction Act, as my colleague Emily Pontecorvo has written — although the Wednesday night manager’s amendment included some tweaks to how, exactly, as well as a few concessions to moderates. Updates include:
The bill now heads to the Senate — where more negotiations will almost certainly follow — with Republicans aiming to have it on President Trump’s desk by July 4.
2. FEMA cancels 4-year strategic plan, axing focus on ‘climate resilience’
The combative new acting administrator of the Federal Emergency Management Agency, David Richardson, rescinded the organization’s four-year strategic plan on Wednesday, per Wired. Though the document, which was set to expire at the end of 2026, does not address specific procedures for given disasters, it does lay out goals and objectives for the agency, including “lead whole of community in climate resilience” and “install equality as a foundation of emergency management.” In axing the strategic plan, Richardson told staff that the document “contains goals and objectives that bear no connection to FEMA accomplishing its mission.”
A FEMA employee who spoke with Wired stressed that while rescinding the plan does not have immediate operational impacts, it can still have “big downstream effects.” Another characterized the move by the administration as symbolic: “There are very real changes that have been made that touch on [equity and climate change] that are more important than the document itself.”
3. Energy Department redirects Puerto Rican rooftop solar investment to upkeep of fossil fuel plants
The U.S. federal government is redirecting a $365 million investment in rooftop solar power in Puerto Rico to instead maintain the island’s fossil fuel-powered grid, the Department of Energy announced Wednesday. The award, which dates to the Biden administration, was intended to provide stable power to Puerto Ricans, who have become accustomed to blackouts due to damaged and outdated infrastructure. The Puerto Rico Electric Power Authority declared bankruptcy in 2017, and a barrage of major hurricanes — most notably 2017’s Hurricane Maria — have destabilized the island’s grid, Reuters reports.
In Energy Secretary Chris Wright’s statement, he said the funds will go toward “dispatching baseload generation units, supporting vegetation control to protect transmission lines, and upgrading aging infrastructure.” But Javier Rúa Jovet, a public policy director for Puerto Rico’s Solar and Energy Storage Association, added to The Associated Press that “There is nothing faster and better than solar batteries.”
4. EDF, Shell, and others to collaborate on hydrogen emission tracker
The Environmental Defense Fund announced Wednesday that it is launching an international research initiative to track hydrogen emissions from North American and European facilities, in partnership with Shell, TotalEnergies, Air Products, and Air Liquide, as well as other academic and technology partners. Hydrogen is an indirect greenhouse gas that, through chemical reactions, can affect the lifetime and abundances of planet-warming gases like methane and ozone. Despite being a “leak-prone gas,” hydrogen emissions have been poorly studied.
“As hydrogen becomes an increasingly important part of the energy system, developing a robust, data-driven understanding of its emissions is essential to supporting informed decisions and guiding future investments in the sector,” Steven Hamburg, the chief scientist and senior vice president of EDF, said in a statement. Notably, EDF took a similar approach to tracking methane over a decade ago and ultimately exposed that emissions were “a far greater threat” than official government estimates suggested.
5. The best-selling SUV in America will now be available only as a hybrid
Toyota
The bestselling SUV in America, the Toyota RAV4, will be available only as a hybrid beginning with the 2026 model, Car and Driver reports. The car will be available both as a conventional hybrid and as a plug-in that works with CCS-compatible DC fast chargers, meaning “owners can quickly fill up its battery during long road trips” to minimize their fossil fuel mileage, The Verge adds. The RAV4 will also beat the Prius for electric range, hitting up to 50 miles before its gas engine kicks in.
Toyota’s move might not come as a complete surprise given that the automaker already introduced a hybrid-only lineup for its Camry. But given the popularity of the RAV4, Car and Driver notes that “if you ever wondered whether or not hybrids have entered the mainstream yet, perhaps this could be a tipping point.”
Nathan Hurner/USFWS
The Fish Lake Valley tui chub, a small minnow threatened by farming and mining activity, could become the first species to be listed as endangered under the second Trump administration.