Green Energy Crushed: Trump Slashes Wind And Solar Tax Breaks

While renewable energy has enjoyed generous federal support since 2022, storm clouds are gathering on the horizon. The federal solar tax credit, currently offering a hefty 30% deduction on installation costs, might soon be history. No more money back for those fancy rooftop panels. Tough break.

The House just passed Trump’s “One Big Beautiful Bill” that aims to eliminate residential solar credits after December 31, 2025. Gone. Finished. Meanwhile, the Senate has its own ideas—a gradual phase-out ending in 2028. Either way, the party’s winding down for homeowners looking to go green.

Nothing’s set in stone yet, but the writing’s on the wall. The clean energy sector is bracing for impact. BloombergNEF projects a 10% decrease in clean energy projects by 2035 if these cuts go through. Not catastrophic, but certainly not great for the climate crowd.

The numbers tell a sobering story. Solar installations could drop 5% over the next decade. Energy storage? Down 7%. Wind gets hit hardest with a projected 35% nosedive. Offshore wind? Forget about it after 2028. No new turbines spinning in the sea.

Industry experts predict a mad dash to build in the next three years before the cliff in 2029. Build now or forever hold your peace, apparently. Projects not operating before 2029 will lose eligibility for credits if they’re built more than 60 days after the bill is signed. Talk about a ticking clock.

The Inflation Reduction Act of 2022 supercharged clean energy development with generous tax breaks. It was hailed as a game-changer. This landmark legislation expanded credit eligibility to include battery storage systems, inverters, and installation labor. Now? Those gains might be short-lived.

For homeowners still considering solar, the message is clear: the 30% credit is still available for 2025. After that? Well, Congress is still arguing about it. But don’t expect Uncle Sam to be as generous with green energy as he once was. Nuclear energy projects are the only ones that will not be affected by these proposed tax credit changes.

States with renewable mandates have already seen electricity rates soar up to 50% higher than those without such requirements, placing additional burden on households and businesses.