The renewable energy sector is facing a major shake-up following President Trump’s newly signed spending bill, which rolls back key tax credits under the Biden administration’s 2022 climate law, The Wall Street Journal writes. 

The move threatens to slash investment in clean energy projects, delay or cancel developments, and potentially wipe out thousands of jobs. Southern Energy Management, a North Carolina-based solar installer, expects residential sales to drop by half in 2026, while larger developers warn the sudden shift will “strand capital” and increase uncertainty for future investment.

While some credits will phase out gradually, most incentives for solar panels, EVs, and clean energy manufacturing will end soon—putting projects in limbo and dampening momentum in the sector. Meanwhile, fossil fuels gain a competitive edge through expanded federal leases and reduced royalties.

Analysts project up to $500 billion in lost investment through 2035. Industry advocates say the impact will be felt nationwide, especially among laid-off workers.

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