US solar developers have secured federal subsidies for a wave of projects large enough to nearly double current capacity, rushing to beat a July 4 deadline that could send renewable power costs sharply higher. The projections reflect the loss of valuable renewable energy tax credits worth at least 30% of project costs, a change that threatens to raise U.S. energy prices amid surging demand driven by artificial intelligence.
The phaseout of the 20-year-old subsidies, accelerated under President Donald Trump's 2025 tax law, could drive contract prices for wind and solar energy up by 40% to 50%, with early data from Texas showing prices for some deals up 120%, according to an analysis by LevelTen Energy.
