Missoula, MT – Ralph Walters, owner of SBS Solar in Missoula, Montana, is facing the potential need to lay off a significant portion of his workforce due to a proposed Republican spending bill that threatens energy tax credits. This critical situation comes as Walters tries to navigate the potential rollback of the Residential Clean Energy Credit, which provides a 30% reduction on the cost of installing solar systems in homes.
Walters purchased SBS Solar from his former employer in 2020, transforming it from a small operation with six employees into a flourishing business with a 15-member team. His company has thrived amid the pandemic, attracting customers drawn both to Montana’s natural beauty and the benefits of solar energy. With many employees under 30 and coming from backgrounds in forestry or construction, Walters has been able to offer competitive wages, health insurance, and promotions—a situation now at risk.
“Beyond somehow figuring out what to do with the tariffs, the rollback of clean energy tax credits in Republicans’ proposed spending bill could force me to make big cuts,” Walters said. The potential changes in legislation have left Walters worried about his business’s future and his employees’ livelihoods. If the bill passes without maintaining the credits, he anticipates reducing his team to as few as five employees. “It’ll be a period of bonuses and thank yous and goodbyes,” he noted, expressing the emotional toll the situation has taken on him.
Walters and his wife, co-owners of the business, decided early on to be transparent with their employees about the possible impacts of the legislative changes. They held a meeting to update the team and pledged to keep them informed as the situation develops, despite concerns that the news might cause some employees to mentally disengage or leave. As it stands, the team has remained intact, showing understanding and resilience in the face of uncertainty.
The proposed spending bill not only threatens Walters’ business but could also have broader implications for the solar industry in Montana. In a state known for its conservative leanings, Walters’ clientele includes both eco-conscious advocates and those seeking independence from government-controlled utilities. While some wealthier areas like Missoula might continue to integrate solar energy without tax credits, Walters fears that rural regions, where solar adoption is driven by energy cost savings, could see a decline.
“I felt terror, plain and simple,” Walters commented on his initial reaction to the bill. He remains uncertain about the future of the tax credits, his business, and the young men he employs, but he is committed to maintaining honesty with his team throughout the coming challenges.
