US solar executives are warning that President Donald Trump’s recent announcement to block wind and solar projects will lead to a power supply shortage, drive up electricity prices, and harm the country’s electric grid.
The Interior Department’s new policy will slow down the growth of the renewable energy industry, according to top executives at Arevon, Avantus, and Engie North America. The move will also increase costs for solar and battery storage projects due to metal tariffs and the end of key tax credits.
Kevin Smith, CEO of Arevon, a leading solar and battery storage developer, says that blocking renewables will worsen the power supply shortage, harm the grid, and lead to higher electricity prices for consumers. He warned that this will make it difficult for small companies and entrepreneurs to access the market.
The industry is already facing difficulties getting permits and rising costs due to Trump’s copper and steel tariffs. Multinationals like Engie are slashing their planned investment in the US by 50% due to regulatory uncertainty.
Renewable energy projects that start construction before the One Big Beautiful Act becomes law will still qualify for tax credits, but new projects may struggle to find investors due to high costs and uncertain regulations. The move could lead to a downturn in new renewable power generation starting in mid-2026 through 2028.
The US is facing a surge in electricity demand from data centers training artificial intelligence systems. Renewable energy is the only power source that can meet this growing demand quickly, but without it, the grid risks brownouts or blackouts.
Source: https://www.cnbc.com/2025/08/24/solar-wind-renewable-trump-tariff-utility-tax-credit-itc-ptc-obbb-electricity-price.html