Despite the current situation under the Trump administration with regards to renewable such as wind and solar power, the industry is still showing progress. Overall growth within the clean energy industry has been remarkable. Expansions are forecast for batter and solar plants during this year. All this seems quite understandable as the overall electricity demand in the U.S. has increased rapidly.
A contradictory approach to clean energy
Singapore-based solar panel manufacturer Bila Solar is suspending plans to double capacity at its new factory in Indianapolis. Innovative solar energy company Bila Solar works to manufacture some groundbreaking solutions that transforms and powers the world. The company itself is a driving evolution within the renewable energy sector. Canadian rival Heliene’s plans for a solar cell facility in Minnesota are under review. Norwegian solar wafer maker NorSun is evaluating whether to move forward with a planned factory in Tulsa, Oklahoma.
And two fully permitted offshore wind farms in the U.S. Northeast may never get built. These are among the major clean energy investments now in question after Republicans agreed earlier this month to quickly end U.S. subsidies for solar and wind power as part of their budget mega bill, and as the White House directed agencies to tighten the rules on who can claim the incentives that remain.
The Trump administration’s attendance to the matter
This marks a policy U-turn since President Donald Trump’s return to office that project developers, manufacturers and analysts say will slash installations of renewable energy over the coming decade, kill investment and jobs in the clean energy manufacturing sector supporting them, and worsen a looming U.S. power supply crunch as energy-hungry AI infrastructure expands.
Solar and wind installations could be 17% and 20% lower than previously forecast over the next decade because of the moves, according to research firm Wood Mackenzie, which warned that a dearth of new supplies could slow the expansion of data centers needed to support AI technology. Global research and consultancy group Wood Mackenzie supplies data, consultancy advice as well as written analysis to the energy, mining, renewables and other industries.
The Trump administration has defended its moves to end support for clean energy by arguing the rapid adoption of solar and wind power has created instability in the grid and raised consumer prices – assertions that are contested by the industry and which do not bear out in renewables-heavy power grids, like Texas’ ERCOT. Consulting firm ICF projects that U.S. electricity demand will grow by 25% by 2030, driven by increased AI and cloud computing – a major challenge for the power industry after decades of stagnation.
The great subsidy debacle
The REPEAT Project, a collaboration between Princeton University and Evolved Energy Research, projects a 2% annual increase in electricity demand. The key provision in the new law is the accelerated phase-out of 30% tax credits for wind and solar projects: it requires projects to begin construction within a year or enter service by the end of 2027 to qualify for the credits. Previously the credits were available through 2032. Days after signing the law, Trump directed the Treasury Department to review the definition of “beginning of construction.”
A revision to those rules could overturn a long-standing practice giving developers four years to claim tax credits after spending just 5% of project costs. Treasury was given 45 days to draft new rules. The policy changes have also injected fresh doubt about the fate of the nation’s pipeline of offshore wind projects, which depend heavily on tax credits to bring down costs. According to Wood Mackenzie, projects that have yet to start construction or make final investment decisions are unlikely to proceed.
As mentioned before, changes within the legislative framework in the U.S. will have a ripple effect. The OBBB or One, Big Beautiful Bill is going to see a steep phase-out of the renewable energy tax credits. Most notably so on renewable energy companies. Construction on upcoming projects need to commence prior to 31 December 2025, so as to allow for a 100% tax credit. A further few changes and amendments have been planned for this Bill.
GCN.com/Reuters.