Solar installer with wind turbines in the background.

Megabill triggers uncertainty for solar and wind power developers

Developers of solar and wind energy projects have just 12 months to begin construction in order to retain key federal tax credits, following the passage of a new law backed by congressional Republicans and signed by President Trump.

Jeff St. John reports for Canary Media.


In short:

  • The new law shortens the timeline for solar and wind projects to qualify for federal tax credits, forcing developers to either break ground by July 2026 or risk losing billions in potential investment.
  • A provision in the final bill gives developers more flexibility than earlier drafts, but industry leaders say the tightened deadline will still halt many early-stage projects and trigger a shortfall in clean energy capacity.
  • Industry leaders warn of a coming slowdown in new project starts after the 12-month window closes, likely increasing electricity costs and delaying the expansion of low-carbon power sources as U.S. energy demand grows.

Key quote:

“There will still be tons of projects in that 2028 to 2031 window that get killed because visibility into economic viability fails to arrive before development expenses become uncomfortably high.”

— David Riester, founder and managing partner of Segue Sustainable Infrastructure

Why this matters:

The shift away from tax credits for wind and solar could disrupt U.S. energy markets just as demand is surging. New manufacturing, AI-driven data centers, and electrification efforts all require vast amounts of power. Solar, wind, and battery storage have driven most of the grid’s recent growth, but without stable incentives, developers may scrap projects or delay them until the market adjusts. With fossil fuel plants taking years to build and renewables now facing compressed timelines, the U.S. could see gaps in power supply, especially in regions already facing strain.

Read more: Senate passes GOP budget bill, hampering US shift to clean energy

Barber Shop located in Ninth Ward, New Orleans, Louisiana, damaged by Hurricane Katrina in 2005.

Disaster aid cuts raise fears of post-Katrina failures as hurricane risks grow

A generation after Hurricane Katrina devastated New Orleans, survivors and experts warn that sweeping cuts to the Federal Emergency Management Agency (FEMA) under President Trump could leave the U.S. dangerously unprepared for future climate-driven disasters.

Dharna Noor reports for The Guardian.

Keep reading...Show less
A small home with boarded windows and flood-damaged personal effects piled on the sidewalk

New Orleans children carry Hurricane Katrina’s trauma into adulthood

Two decades after Hurricane Katrina, adults who experienced the storm as children continue to struggle with emotional scars and a fractured sense of home, as climate threats to New Orleans persist.

Kathleen Schuster reports for Deutsche Welle.

Keep reading...Show less
Woman in white shirt and sunglasses sitting on sidewalk listening to something on her phone.

Local emergency alert systems often go unused, with deadly results

As extreme weather and climate-driven disasters intensify, many local officials fail to send lifesaving warnings through a federal emergency alert system designed to quickly reach people in harm’s way.

Jennifer Berry Hawes reports for ProPublica.

Keep reading...Show less
A woman sitting at a kitchen table with a utility bill and a calculator.

Democrats target Trump’s energy law as driver of rising electricity bills

Democrats are blaming Republican-backed rollbacks of clean energy programs for rising electricity costs as they craft a midterm campaign strategy around energy prices.

Nico Portuondo reports for E&E News.

Keep reading...Show less
Canadian flag on a sunny day waving in front of the Canadian parliament building

Oil and gas firms press Carney to scale back climate rules as Canada weighs emissions plan update

Oil and gas companies have lobbied Prime Minister Mark Carney’s government to roll back key Trudeau-era climate policies ahead of an expected update to Canada’s Emissions Reduction Plan.

Carl Meyer reports for The Narwhal.

Keep reading...Show less
Man in safety vest and hard hat walking between solar panels.

U.S. tariffs hit Indian solar exports as domestic market faces pressure to absorb surplus

The Trump administration’s 50% tariff on Indian imports has sharply reduced the U.S. market for Indian solar panels, threatening the growth of India's expanding clean energy manufacturing sector.

Somini Sengupta reports for The New York Times.

Keep reading...Show less
Man on roof installing rooftop solar.

Koch-funded campaign ramps up fight against Vermont’s clean energy laws

A national conservative group backed by oil money is spending heavily to weaken Vermont’s climate policies, challenging the state’s efforts to curb fossil fuel use.

Austyn Gaffney reports for Grist in partnership with VTDigger.

Keep reading...Show less
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.