Rays of hope in clean energy as feds forego wind and solar

July 23, 2025

(The Center Square) – The congressional budget resolution passed early this month struck a blow, many say, to the renewable energy industry by phasing out tax credits for wind and solar energy.

Clean energy advocates, however, say that even in the face of energy costs projected to rise as much as 74% over the next 10 years, that there’s reason to be optimistic.

“Anyone who is writing the obituary of the advanced energy industry right now should put their pens down,” said Harry Godfrey of Advanced Energy United, a clean energy advocacy group.

While Godfrey admitted that the rollbacks will cost jobs in manufacturing and on specific energy projects, he noted there are still opportunities for renewable energy to get off the ground. Specifically, planned wind and solar projects that have begun construction within a year of the act’s passage are still eligible for credit.

The resolution also left the door open for different types of clean energy projects. Geothermal plants and battery energy storage systems are still eligible for tax credits. This could prove vital in Pennsylvania where power demand will be higher than ever thanks to massive investments in the state’s technology sector.

Last year, the state’s power grid manager, PJM, saw prices skyrocket 800%. The spike resulted in a 20% increase for consumers. Many fear that even with an “all of the above” energy policy like that of Gov. Josh Shapiro, the state won’t have what it takes to meet demand.

The Department of Energy released a report that anticipated a 100-fold increase in blackouts by 2030, though the federal government has shown a preference for natural gas and other fossil fuel resources to resolve the impending shortage. Many who support clean energy in the long-run say there simply isn’t time to get renewables up and running without support from fossil fuels.

Clean energy advocates say that some of these obstacles can be cleared through legislation, including the red tape that slows new energy projects down.

Chris D’agostino, principal at Advanced Energy United, told The Center Square that clean energy projects are fastest to get on the grid and the most affordable to build. His organization hopes to see Pennsylvania increase its portfolio from 8% to 35% clean energy sources by 2035.

Advocates hope to accelerate clean energy production through legislation proposed in Shapiro’s “Lightning Plan.” The Reliable Energy Siting and Electric Transition, or RESET, board is a proposed central authority that would approve new energy projects rather than relying on each of the state’s over 2,000 municipalities to shoulder the process. House Bill 502, which would create the board, was introduced in March and is currently sitting in committee.

“We’re not asking for the sun, the moon, and the stars,” said D’Agostino. “It’s a reasonable goal.”

Other ideas aimed at improving efficiency are seen as potential avenues for increasing the reliability and maximizing impact of clean energy on the grid. Dynamic line ratings and improved power control systems to improve operations along with demand response programs to incentivize reduced energy usage are all strategies clean energy advocates hope to see prioritized.

For their part, many of the technology companies responsible for the data centers which are increasing demand have hitched their hopes on a resurgence of nuclear power. Amazon and Microsoft have both enlisted existing plants to fuel their AI infrastructure, while the industry looks toward development of small modular reactors for future output.


 

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