Power Shift: What Happens When Clean Energy Loses Federal Backing?

By Christian Sokoll July 2025

A sweeping new law signed on July 4, 2025, is poised to dramatically reshape the U.S. energy landscape—and not in the way clean energy advocates had hoped. The legislation, dubbed the “One Big Beautiful Bill,” eliminates federal tax incentives for wind and solar energy projects, a move that experts warn will drive up electricity prices across the country, especially in Republican-led states.

🔺 What’s Changing?

For decades, federal tax credits have helped make wind and solar energy more affordable and competitive. With those incentives now gone, the cost of building new renewable energy projects is expected to rise sharply. As a result, fewer projects will be developed, and those that do move forward will come with higher price tags.

This shift is expected to push utilities toward more expensive natural gas generation, increasing electricity costs for consumers. According to the nonpartisan think tank Energy Innovation, states like Oklahoma could see significant  rate hikes over the next decade. Kentucky, Missouri, and Kansas are also projected to experience increases.

🌬️ The Impact on Renewable Energy

Without federal support, the renewable energy sector faces a major slowdown. In the past, clean energy projects were being built even in states without strong renewable mandates. Now, without those incentives, there’s little to drive continued investment—especially in regions where state policies don’t fill the gap.

President Trump, who signed the bill into law, has been openly critical of wind and solar energy, calling them “a blight” on the country. His administration argues that the new law will boost domestic energy production and streamline operations for fossil fuel development.

🔍 What This Means for the Future

This policy shift could have long-term consequences for the U.S. energy transition. As the cost of renewables rises and investment slows, the country may become more dependent on fossil fuels—just as global efforts to combat climate change intensify.

For businesses, utilities, and policymakers, the message is clear: energy strategy must adapt quickly. Whether through state-level incentives, private investment, or innovation in energy storage and efficiency, the path forward will require bold thinking and decisive action.