Trump Shift Away from Renewables Will Stymie Growth, But Clean Energy Here to Stay

On January 20, President Donald Trump signed an order to tackle what he called an energy crisis. He noted that demand for power is rising and home energy costs are climbing. Since then, the administration has:

• Favored oil, gas, coal and nuclear power
• Cut back incentives for solar and wind
• Reduced funding for clean energy research

Trump wrote that weak and intermittent energy supply puts the nation at risk. He said the grid is “precariously inadequate” and needs fast action.

Local Impact in New Mexico

In Santa Fe, crews from Positive Energy Solar work on a rooftop system at the New Mexico Finance Authority building. Technicians Francisco Visarraga and Russ Kazar ran wires from the panels to the inverter. But a sudden storm cut their day short.

Still, solar jobs matter in New Mexico: as of 2024, about 13,400 people worked in the clean energy sector. These jobs include panel installers, engineers, and maintenance crews. State leaders worry that federal cuts could slow this growth.

Key Takeaways

• 13,400: Clean energy jobs in New Mexico (2024)
• $500 billion: Tax credits cut from the 2022 Inflation Reduction Act
• $800 billion: Private clean energy investments driven by 2022 law
• Rising demand: More homes and data centers need extra power
• State action: Local governments may fill funding gaps

Strains on the Grid in Washington

Seattle’s Denny Substation sits under tall towers built in the last 20 years. Joe Nguyen, Washington State Commerce director, says utilities plan for decades ahead. But when federal help ends, those plans can stall.

Lines and transformers age. AI data centers now use more power, leaving less backup. Hot spells push capacity to the limit. If Washington and California both bake at once, power shortages could hit.

Rising Costs for Consumers

Dawn Lindell, CEO of Seattle City Light, warns rates will climb. She says:

“Grants and tax credits cut at the federal level raise construction costs. We must pass them on to customers.”

Supply chain snags and new tariffs also drive prices up. Lindell expects rate hikes to last 10–12 years, affecting homes and businesses alike.

National Industry Perspective

On July 4, President Trump signed the “One Big Beautiful Bill” Act. It removed about $500 billion in clean energy tax credits from the 2022 Inflation Reduction Act. At the same time, the EPA moved to roll back older climate rules.

Those 2022 credits had spurred more than $800 billion in private clean energy investments. Public surveys showed strong support for renewable subsidies. Now, with federal help gone, states and companies face new challenges.

Why the Green Transition Will Survive

Nils Kupzok, a Columbia University scholar, says clean energy will keep moving forward. He notes that technology costs have dropped:

• Solar panel prices down by over 70% since 2010
• Battery costs fell by nearly 90% in the last decade

Businesses see long-term savings, so they keep investing. And many states offer their own tax breaks and grants. Because of this, wind and solar growth may slow, but it won’t stop.

Private Sector Resilience

In San Jose, California, Mary Powell leads Sunrun, a solar services firm in 22 states. She visits a customer who leased panels and batteries.

“It keeps my lights on during outages, and it costs less than the grid.”

This real example shows why families and businesses value clean energy. When it cuts bills and adds reliability, demand stays strong—no matter what Washington does.

Looking Ahead

What’s next? The clean energy sector must adapt. States may:

• Offer local tax credits
• Provide low-interest loans
• Fund new grid upgrades

Meanwhile, companies will:

• Build microgrids
• Invest in energy storage
• Sign long-term power purchase deals

In short, federal cuts create hurdles, but they don’t stop progress. Clean energy has real benefits—jobs, savings and a more stable grid. And that means it’s here to stay.