President Trump’s Megalaw Expected to Curtail Wind and Solar Growth
Analyses of President Donald Trump’s recently enacted “megalaw” indicate a sharp decline in wind and solar power development, with forecasts projecting up to a 59% reduction in new clean power capacity over the next decade as tax credits phase out and regulatory hurdles grow[1]. Clean energy advocates warn that these changes could jeopardize about 100 GW of planned utility-scale wind and solar projects and threaten U.S. efforts to meet rising electricity demand, especially from AI and electrification[1].
Utilities Accelerate Renewable Projects to Secure Tax Credits Before New Law Takes Effect
Major U.S. utilities are expediting wind and solar project development to qualify for remaining Inflation Reduction Act tax credits within a newly imposed one-year safe harbor period under the Republican megabill passed in July 2025[2]. Companies such as Xcel Energy and CMS Energy are moving projects originally intended for 2030–31 up to 2027–28, aiming to deliver new, affordable clean energy before incentives expire[2].
Long Duration Energy Storage (LDES) Highlighted as Critical for Reliable Renewable Grids
A new brief launched at London Climate Action Week underscores the urgent need to scale long duration energy storage (LDES) technologies alongside renewables to address intermittency and ensure grid reliability[3]. LDES is positioned as a strategic enabler for achieving global goals to triple renewables by 2030, supporting steady, low-carbon power supply and reducing the cost of electricity through greater flexibility[3].
IRS Announces 2025 Inflation Adjustment for Renewable Energy Production Tax Credit
The IRS published updated figures for the 2025 renewable energy production tax credit: the inflation adjustment factor is set at 1.9971, and the reference price for wind-generated electricity is 3.1 cents per kWh, a slight decrease from last year[4]. These adjustments affect incentive calculations for qualified energy resource facilities and signal ongoing policy refinement to support renewables[4].
U.S. Clean Energy Manufacturing Surges, Driven by IRA Incentives
Renewable energy manufacturing in the U.S. is experiencing a revival, with announced investments exceeding $91 billion across more than 200 projects since the Inflation Reduction Act passed, including significant growth in solar, storage, wind, and hydrogen sectors