Trump’s rollback of renewable incentives fuels last-ditch efforts in solar and wind
They’re rushing — and not just because of the weather.
All across the country, state governments, local agencies, and renewable energy developers are moving at breakneck speed to finish solar and wind projects before a core piece of their financing disappears. With President Donald Trump pulling the plug on federal tax credits for clean energy, the pressure is on. Miss the deadline, and the numbers just don’t work anymore.
It’s a chaotic scramble, one that might shape America’s power grid for decades to come.
Clock’s Ticking — and the Costs Are Climbing
For years, federal tax credits served as the economic engine behind thousands of solar panels and wind turbines. They brought down costs, drove investment, and made it possible for even smaller states to dream big on renewables. But now, that rug is being yanked away.
Warren Leon, executive director of the Clean Energy States Alliance, put it bluntly: “There’s a rush to speed up the development of some projects in the short run.”
He’s not exaggerating. Developers who once mapped out timelines over years are now cramming tasks into weeks or months. The expiration date for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) is looming, and there’s no lifeline in sight from Washington.
State lawmakers, especially in places like Washington, Oregon, and New York, are trying to keep things from falling apart.
And fast.
Permits, Paperwork, and Panic
The gears of bureaucracy aren’t exactly built for urgency. But with billions of dollars in clean energy investments on the line, states are rethinking how quickly they can get projects approved.
Washington State Sen. Sharon Shewmake, who chairs the Senate Environment, Energy & Technology Committee, says she’s working with regulators to get projects greenlit faster than usual.
“Can we speed that up? Can we make that easier for them?” she asked. It’s not rhetorical — she’s calling meetings, pushing agencies, and clearing red tape where she can.
In Oregon, officials are considering emergency authorizations for grid connection reviews. Meanwhile, in New York, Gov. Kathy Hochul’s administration is leaning on a streamlined permitting law passed in 2020 that was originally meant to push past NIMBYism.
One-sentence paragraph? Absolutely:
This isn’t business as usual.
Not Just Red Tape — Real People, Real Bills
While policy debates dominate headlines, the practical fallout lands on everyday people.
If solar and wind projects slow down or get shelved, utility companies may lean harder on fossil fuels to meet demand. That’s not just bad for the planet — it hits wallets too.
According to a 2024 analysis by the Lawrence Berkeley National Laboratory, wind power costs about 30% less than new natural gas over a 20-year lifespan. Without tax credits? That difference evaporates.
Some states are blunt about it. In a recent hearing, a Minnesota energy commissioner warned lawmakers, “If we lose these projects, you’re going to hear from voters — and not in a good way.”
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Higher costs for electricity
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Delays in decarbonization goals
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Loss of clean energy jobs
It’s not a hypothetical. It’s already happening.
Who’s Sprinting the Hardest?
Not every state is in the same boat. Some had more projects in the queue. Some have more ambitious clean energy mandates. Others? They’re just better at moving quickly.
Here’s a snapshot of what states are facing:
| State | % Power from Renewables (2024) | Projects at Risk | Grid Connection Bottlenecks |
|---|---|---|---|
| California | 52% | High | Severe |
| Texas | 28% | Moderate | Moderate |
| Washington | 65% | High | Light |
| Florida | 14% | Low | Severe |
| New York | 40% | High | Moderate |
Texas, for all its conservative politics, has been a quiet leader in wind power. But even there, developers are nervously watching their calendars.
Meanwhile, California is practically begging regulators to push solar interconnections through faster, with some agencies working overtime — literally.
From Investment to Exit Strategy
There’s another twist here. Some developers, especially smaller firms, are thinking about cutting their losses.
“It just doesn’t pencil out anymore,” said an executive at a mid-sized solar firm in Arizona. “We’re probably walking away from three or four projects unless something changes.”
For companies that took on high-risk capital under the assumption tax credits would stay, the ground has shifted. Venture capital firms, previously enthusiastic, are starting to look elsewhere.
Ironically, even some red states with decent solar potential — like Georgia and Alabama — might suffer. Their markets are just now getting off the ground. Losing the credits slams the door before they even had a chance to get started.
One lonely sentence again, because it feels right:
And that stings.
State Mandates Still Stand, but Will They?
Even with tax credit support fading, most state-level clean energy targets haven’t changed. New Jersey still aims for 100% clean power by 2035. Colorado? 80% by 2030. Hawaii? Already trying to hit net-zero.
But without the federal backing, some states may quietly scale back — or delay — those goals. They won’t say it out loud. Not yet. But the math is getting harder to ignore.
Energy agencies in at least three states have already submitted memos suggesting “revised feasibility assessments.” Translation: We might need more time… or a miracle.
Some officials remain optimistic. “This is a bump, not a wall,” said a Vermont energy analyst. “We’ve built momentum. People want clean energy. They’re not going back.”
