Trump Administration's Rule Change Threatens Renewable Energy Growth

Clean energy advocates and industry leaders are warning that an upcoming Treasury Department decision could disrupt the U.S. renewable energy sector. The move follows President Donald Trump’s executive order to end subsidies for “unreliable, foreign-controlled energy sources,” targeting wind and solar power.
The order directs Treasury Secretary Scott Bessent to issue new guidance restricting tax credits for renewable projects unless a “substantial portion” of construction has been completed. This change could make it harder for projects to qualify for credits under the existing “beginning of construction” metric, which requires only 5% of a project’s cost to be invested.
Industry groups, including utilities, data center developers, and Wall Street firms, are lobbying the administration to avoid stricter rules. They argue that such changes could increase energy costs, deter investment, and slow the deployment of clean energy infrastructure.
Joey Paolino of Advanced Energy United warns that cutting off tax credits would raise electricity prices and harm state economies. A clean energy executive added that private financial firms and utilities are also flagging concerns, fearing a potential “economy-wide impact.”
The administration’s focus on fossil fuels and nuclear energy for AI infrastructure has further complicated the outlook for renewables. Senate Republicans, including Sens. Chuck Grassley and John Curtis, are pressuring the administration to maintain stability in the tax credit framework.
Legal experts note that altering the “beginning of construction” rules could face challenges in court, as the concept is critical for project financing predictability. Meanwhile, the Data Center Coalition and IT firms are urging a technology-neutral approach to ensure rapid deployment of energy projects for AI and advanced manufacturing.
The uncertainty has prompted clean energy groups to explore state-level solutions, advocating for creative policies to expand renewable energy and keep rates affordable for homeowners.
With the Treasury guidance expected soon, stakeholders are closely monitoring how the administration balances its push for fossil fuels with the need for a stable, reliable energy mix.

Published: 8/15/2025