Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 329

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 329
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 operating results.

Although we believe that
solar energy will experience widespread adoption in those applications where it competes economically with traditional forms of energy
without any incentive programs, in certain markets our net sales and profits remain subject to variability based on the availability and
size of government subsidies and economic incentives. Federal, state, and local governmental bodies in many countries have provided subsidies
in the form of feed-in-tariff structures, rebates, tax incentives, and other incentives to end users, distributors, system integrators,
and manufacturers of PV solar products. Many of these incentive programs expire, phase down over time, require renewal by the applicable
authority, or may be amended. To the extent government incentive programs are reduced earlier than previously expected, are changed retroactively,
or are not renewed, such changes could negatively impact demand and/or price levels for our solar modules, lead to a reduction in our
net sales, and adversely impact our operating results.

Current regulatory policies,
or any future changes or threatened changes to such policies, including those changes as a result of the presidential administration and
control of the U.S. Congress, may subject us to significant risks, including the following:

●a reduction or removal of clean energy programs
and initiatives and the incentives they provide may diminish the market for future solar energy off-take agreements, slow the retirement
of aging fossil fuel plants, including the retirements of coal generation plants, and reduce the ability for solar project developers
to compete for off-take agreements, which may reduce PV solar module sales;

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●any limitations on the value or availability
to manufacturers or potential investors of tax incentives that benefit solar energy production, sales, or projects, such as the Section
45X advanced manufacturing production credit, ITC, and PTC, could result in reducing such manufacturers’ or investors’ economic
returns and could cause a reduction in the availability of financing, thereby reducing demand for PV solar modules;

●any incentives contingent upon domestic production
of modules, such as tax incentives set forth under the IRA, could limit our ability to sell modules manufactured in certain foreign jurisdictions,
which may adversely impact our module average selling prices and could require us to record significant charges to earnings should we
determine that the manufacturing facilities and equipment in such foreign jurisdictions are impaired; and

●any effort to overturn federal and state laws,
regulations, or policies that are supportive of solar energy generation or that remove costs or other limitations on other types of electricity
generation that compete with solar energy projects could negatively impact our