This bill prohibits federal funds from being used to procure solar panels manufactured or assembled by entities connected to China, with certain waiver provisions and reporting requirements.
Carlos Gimenez
Representative
FL-28
The "Keep China Out of Solar Energy Act of 2025" prohibits federal funds from being used to procure solar panels manufactured or assembled by entities based in or controlled by the Chinese government, with a waiver option available under specific conditions. It mandates the development of standards and guidelines for executive agencies and requires amendments to the Federal Acquisition Regulation to implement these prohibitions. Additionally, the Act requires a report from the Comptroller General on past solar panel purchases from covered entities and a study on the state of solar panel production, technology, and supply chains.
Federal Solar Projects Can't Use Chinese Panels Under New Bill: "Keep China Out of Solar Energy Act"
The "Keep China Out of Solar Energy Act of 2025" (SEC. 1) basically says the federal government can't spend money buying solar panels from companies that are based in China or are controlled by the Chinese government (SEC. 6). This ban applies to everything from direct contracts to subcontracts, grants, and even government purchase cards (SEC. 2). The goal is pretty straightforward: boost American solar panel manufacturing and reduce reliance on China for a key part of our renewable energy infrastructure.
Plugging In: How the Ban Works
This isn't just a suggestion—it's a rule that agencies have to follow. Within 180 days of the Act becoming law, the Office of Management and Budget (OMB) has to create guidelines for all executive agencies on how to avoid buying Chinese-made solar panels. The Federal Acquisition Regulation, which is like the rulebook for government purchases, will also be updated to reflect this ban (SEC. 2). Think of it like this: if you're a contractor working on a federal building project that includes solar panels, those panels cannot come from a company on the government's "no-buy" list of Chinese entities.
The "Only Option" Escape Hatch
There's a built-in exception, but it's a tight one. If an agency absolutely has to use a Chinese supplier because they're the only viable option, they can apply for a waiver. But this isn't a rubber stamp. Both the Secretary of State and the Secretary of Homeland Security have to sign off on it (SEC. 3). Imagine a scenario where a specific, highly efficient solar panel needed for a remote research station is only made by one company, and that company is based in China. The agency could request a waiver, but it would be under intense scrutiny.
Tracking the Dollars and the Panels
To make sure this is all working, the Comptroller General (basically the government's chief auditor) has to report to Congress within 275 days of the Act's enactment, detailing how much federal money has been spent on solar panels from these "covered entities" (SEC. 4). The OMB is also tasked with studying the entire solar panel production landscape – looking at where the US stands now, how we're keeping up with new technology, and what the global supply chain looks like (SEC. 5). This is like taking inventory and making sure we have a good handle on where our solar panels are coming from and where we need to improve.
Real-World Ripples
While boosting domestic production sounds good, there are potential bumps in the road. Cutting off a major supplier like China could mean higher prices for solar panels, at least in the short term. This could slow down the rollout of solar projects, especially for smaller businesses or local governments that rely on federal funding. The definition of a "covered entity" (SEC. 6) is also key – it's up to the Secretary of Homeland Security to decide which companies are controlled or influenced by the Chinese government, and that determination could have a big impact on which companies can participate in federal projects. It is not clear what, if any, recourse these companies have to appeal such a determination. It also could be considered protectionist, and may cause China to take similar measures.