The Trump administration is taking steps that could further harm the renewable energy industry in the US. Days after a new domestic policy bill was passed, the White House announced moves that could claw back billions of dollars in funding for green projects and further hamper the solar and wind industries.
The bill, which phased out many tax credits for wind and solar energy, has already been met with criticism from some Republicans who say it doesn’t go far enough. A member of the House Freedom Caucus said President Trump would find more roadblocks to put in place.
The administration’s next moves could make it difficult for developers to claim remaining credits, directing the Treasury Department to “rapidly eliminate market distortions and costs imposed on taxpayers by so-called ‘green’ energy subsidies.” This could have a chilling effect on projects, particularly those that rely on international suppliers.
Experts warn that this could lead to a situation where solar projects struggle to meet requirements, potentially making it difficult for them to qualify for tax credits. The administration’s executive order also places restrictions on tax credits for projects sourced from countries like China and North Korea.
This move comes as the Environmental Protection Agency (EPA) tries to claw back billions of dollars in green financing grants that were awarded to nonprofits through the Inflation Reduction Act. The EPA argues that its efforts are justified, but critics say this could lead to a “backdoor” cancellation of federal subsidies for solar energy.
Source: https://www.nytimes.com/2025/07/10/climate/trump-renewable-energy-solar.html