Trump’s Energy Bill Cuts Clean Power Incentives

The U.S. just passed Trump’s “One Big, Beautiful Bill”, and households could see higher electricity bills across the country.

The bill phases out key clean energy tax credits, namely the Section 48E Investment Tax Credit, Section 45Y Production Tax Credit, and Section 25D Residential Solar ITC. These credits supported over 90% of new renewable power last year, and without those incentives, fewer clean energy projects will be built - slowing grid expansions, and raising electricity prices for households and businesses.

With electricity demand rising, especially from AI data centers, new capacity in any form shouldn’t be stalled. New gas plants can’t be built fast enough to cover the gap. Nuclear takes forever. And coal… is coal. Supply will crunch and bills will rise.

NERA estimates electricity prices could jump nearly 30% in states like New Jersey, Wyoming, Illinois, and New Mexico by 2029. In New Jersey, residential bills already jumped 20% starting June 1 due to supply and capacity issues. Now, stack on top the ripple effects of this bill, and rate increases could grow even steeper.

This is a direct hit to US energy independence, climate progress, and job creation. Also, maybe AI growth and independence. The clean energy sector has been one of the few bipartisan success stories, driving investment in red and blue states alike.

The damage is done. The incentives may be gone, but demand isn’t. Let’s buckle up for this ride and see what happens next.

@CanaryMedia

https://www.canarymedia.com/articles/clean-energy/big-beautiful-bill-state-costs