Trump administration budget bill threatens future of clean energy sector
June 6, 2025
Friday, June 6, 2025 8:52PM
Trump administration budget bill threatens future of clean energy sector by cutting funding for projects, including solar and wind.
SAN FRANCISCO (KGO) — There are concerns in America’s fast-growing clean energy sector about the effects of the massive budget bill being pushed by President Donald Trump.
We took a look at the changes that could be coming, and what they could do to the industry.
The turbines may still be spinning, but there are new concerns that Trump energy policies could soon suck the wind of out an American clean energy boom.
The current Republican budget bill takes aim at clean energy tax credits that help boost industries from solar to wind power.
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“It will be a huge blow against wind energy and all other renewable energy types, especially because it puts us off of a level playing field or a more level playing field with fossil fuels. Because, of course, the big, beautiful bill doesn’t cut fossil subsidies,” said Nancy Rader with the California Wind Energy Association.
Rader says new projects, like the iconic wind farm at Altamont pass in the East Bay, have already slowed to a crawl because of diminishing support at the state level She points out that the technology fills a critical gap for other sources, like solar power, that rely on battery storage during off-hours.
“And solar and batteries can go a long way towards that. But wind generation generates energy during the evening, and night periods, and so we don’t we don’t need the battery backup. And so, we really need a mix of wind, solar and batteries to achieve our goals, at least cost. But wind is a critical part of that picture. And if we don’t have wind, it will cost consumers more to reach our goals,” she said.
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Wind, solar and battery storage plants were expected to provide 93% of the new power coming online this year, according to the U.S. Energy Information Administration. But the bill could shorten the window that consumers and manufacturers have to use federal tax credits. The potential added expense sent many clean energy stocks plummeting.
Paul Dickson, president of San Francisco-based Sunrun — the largest domestic solar panel installer in the country — pointed to booming job growth in the solar industry and recent efforts to onshore manufacturing back to the U.S.
“A quick and swift and abrupt change doesn’t give you the runway to be able to accomplish that. And so, you know, overnight you’d probably see a quarter million jobs in the in the solar industry go away,” Dickson said.
Many observers are hoping for changes in the Senate version of the plan. But in its current form, Nuclear Energy is the only sector to have its tax credits fully preserved. Potentially shifting America’s energy economy away from one of its fastest growing sectors. Some analysts believe battery storage would be among the hardest hit industries. Potential cutting planning expansion by near 90% over the next decade.
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