Trump administration threatens higher electricity prices by derailing solar, wind tax credits

Ceres issued the following statement after the U.S. Treasury released new guidance that will severely restrict tax credit qualification for homegrown solar and wind energy. 

“At a time of rising energy demand and already soaring utility bills, this new guidance from Treasury serves only to stall investment in the most affordable and quickest-to-build sources of new electricity,” said Zach Friedman, senior director of federal policy, Ceres. “This burdensome red tape will make it harder to affordably meet demand, putting businesses and consumers across America at risk of higher prices, power outages, and lost jobs. Moreover, uncertainty and lack of affordable, reliable power will force investment overseas. Not only does this guidance cut directly against the Trump administration’s own stated goals of achieving American energy dominance, reducing electricity bills, and running an efficient government, it also undermines the clear letter and intent of the law passed by Congress. In the legislation signed by President Trump on July 4, lawmakers agreed to a slower phase-down of solar and wind tax credits to ensure more order and predictability over the next two years. Instead, the administration is opting to put up chaotic new barriers that harm energy producers, workers, consumers, and the U.S. economy.” 

Under the big tax bill signed by President Trump on July 4, solar and wind projects must begin construction by July 4, 2026 or be placed in service by the end of 2027 to qualify for federal incentives. However, Treasury’s new guidance alters the long-standing definition of “commence construction” that businesses have relied on, making those thresholds more difficult for solar and wind projects to achieve before the tax credits expire. 

Working with major employers across the economy, Ceres strongly opposed changes to federal clean energy tax credits in the bill because of their expected impact on electricity generation, prices, supply chains, and jobs. Over the course of hundreds of meetings with Republican lawmakers throughout 2025, businesses presented the strong economic and national security case for maintaining the tax credits. While the tax credit qualification threshold lawmakers ultimately passed for solar and wind was disappointing and inadequate, it was a marked improvement over a previous proposal to eliminate them much sooner. The Treasury guidance essentially undermines the Congressional Republican negotiation that led to that outcome. 

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About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.