Economists warn that the expiration of tax credits for clean energy projects will slow down the development of solar and wind farms in Texas, leading to higher electricity prices and a potential affordability crisis. The changes, part of the One Big Beautiful Bill signed by President Donald Trump, phase out many of the subsidies that have fueled the growth of the industry.
With the tax credits set to expire in 2027, energy companies are bracing for potential delays or cancellations of projects already in the pipeline. This could lead to a shortage of renewable energy sources, putting pressure on the grid and causing prices to rise. Experts predict that this will have significant economic implications for Texas, including lower employment rates and slower state economic growth.
The expansion of tax credits under President Joe Biden’s Inflation Reduction Act led to a surge in clean energy investment in Texas, with companies investing over $62 billion in projects across the state since its passage in 2022. However, the sudden phase-out of these subsidies will likely have far-reaching consequences for the industry and the state.
Industry experts are divided on the impact of the changes, with some predicting that the costs associated with manufacturing parts and developing solar and wind energy will rise, while others believe that cheaper renewable energy sources will continue to be a viable option. The One Big Beautiful Bill has been criticized by many as standing in the way of building cheap, affordable American energy supplies.
As the industry adapts to the new rules, it remains to be seen how Texas will navigate this uncertain future and balance its economic growth with environmental concerns.
Source: https://www.texastribune.org/2025/07/24/texas-clean-energy-tax-credit-cuts