You’ve reached your free article limit
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Democrats in Congress are determined to restore them. That isn’t necessarily what the industry wants.

As many Americans celebrate the country’s 250th birthday this weekend, the clean energy industry will be mourning a death. Independence Day marks the expiration of federal tax credits for wind farms and solar arrays, subsidies that have been in effect in some form or another since 1978.
They may not be dead forever. Leading Democrats in Congress are preparing to reinstate the tax credits the next chance they get — whether or not the clean energy industry is asking for it.
“Republicans letting these clean energy credits expire is bad for families, bad for workers, and a gift to China,” Senate Minority Leader Chuck Schumer told me in an email. “Democrats will fight to bring these incentives back and keep pushing every policy that lowers energy costs, strengthens American manufacturing, and protects America’s clean energy future.”
While the tax credits were not initially created to tackle climate change, they became the backbone of American climate policy as fossil fuel companies mired federal attempts to regulate carbon pollution in court challenges.
The original credits, passed as part of the 1978 Energy Tax Act, were intended to reduce the country’s reliance on oil and natural gas during the oil crisis. They included a 30% tax credit for homeowners and a 10% tax credit for businesses on the cost of wind or solar, among other “alternative energy” technologies. Congress passed extensions of the credits numerous times in the decades that followed, making tweaks along the way: Lawmakers took away the credit for wind farms in the mid-1980s; then, in 1992, they created a new production tax credit for wind based on the amount of energy a given project generated.
Throughout the history of the tax credits, there was often a will-they-won’t-they precarity to their reauthorization. And yet in the end Congress always extended the credits on bipartisan votes. It wasn’t until the 2022 Inflation Reduction Act, which wrapped up tax credit reauthorization in a larger, highly partisan package, that even Republicans who supported the credits withdrew their votes in protest.
The IRA dramatically extended and expanded the subsidies, opening up both the investment and production tax credits to any carbon-free electricity source — not just wind and solar — and authorized them for as many years as it would take to cut emissions from the electric grid by 75%. It also offered developers increased tax relief, covering up to 70% of their costs if they used equipment from U.S. factories and built in designated low-income “energy communities.”
This combination of tweaks — the seemingly infinite timeline, the generous boost for domestic content — contributed to a boom in investment in new wind and solar projects in the U.S. and onshore manufacturing of the equipment to build them. But unbounded optimism gave way to uncertainty when Trump took office in early 2025 and pushed through the One Big Beautiful Bill Act, which cut short subsidies for wind and solar. Projects that begin construction on or after July 4 of this year must be up and running by the end of next year if they want to claim the tax credits — an absurdly short timeline — though other carbon-free energy sources such as new nuclear reactors, geothermal plants, and energy storage systems remain eligible until 2033.
The effects of the tax credit cliff for wind and solar will not be noticeable right away. Developers have stockpiled solar modules and turbine parts and ordered custom transformers, strategies that will enable them to claim they have “begun construction” on projects before July 4, even if they haven’t broken ground yet. Wood Mackenzie analysts estimate that companies have safe harbored between 216 gigawatts and 240 gigawatts of solar capacity, and nearly 30 gigawatts of onshore and offshore wind capacity. It will take four to five years for the industry to work through this pipeline. Any slowdown during that time is more likely to be a result of Trump’s gauntlet of permitting challenges for renewables or community opposition than it is to come back to the lack of tax credits.
Post-2030, however, the picture is murkier. No one I spoke to for this story expects clean energy development to come to a halt. Solar is the fastest growing energy source in the United States, and with demand for electricity surging, that’s unlikely to change. Without the tax credits, however, solar projects may become more difficult to finance, and the energy they generate will cost more. According to market research by LevelTen Energy, a company that connects corporate clean energy buyers and sellers, developers expect average prices for power purchase agreements, or PPAs, to rise by 40% to 120%.
That’s a wide range, and these numbers are still hypothetical, as developers aren’t yet selling power from non-tax credit-eligible projects, Connor Valaik, a senior manager for energy marketplace transactions at LevelTen, told me. When I asked him whether corporate buyers will still be interested at those rates, he noted that PPA prices have already increased year over year due to tariffs and inflation, “and we still see really strong demand for PPAs.” What matters most is the price of a solar or wind PPA relative to the market price of power. If electricity demand continues to explode in the 2030s, as it is expected to, “that will push energy market prices up, which could buoy that value to buyers.”
When I started asking whether the clean energy industry itself would fight to bring the tax credits back, the responses I got were mixed. The developers I reached out to declined to comment. The American Clean Power Association sent an ambiguous quote from JC Sandberg, its chief policy officer, stating that it was “focused on delivering durable policies to support American-made clean energy.” The Solar Energy Industries Association repeated an earlier quote from its president and CEO, Tim Pawlenty, stating that “SEIA will of course consider any policy, including tax credits, that accelerates solar and storage growth.”
One staffer in the House told me there’s a split between bigger developers that don’t need the tax credits for their projects to be viable and smaller companies that do, which is making it difficult for the trade associations to take a position. Another staffer told me that while they’ve heard some in the industry argue that it would be better not to put a target on their backs by reinstating the credits, that is not the majority view.
Maya Gibbs, a senior policy advisor for clean energy deployment at the center-left D.C. think tank Third Way, said the industry has bigger fish to fry right now. “There’s better bang for our buck, so to speak, in reducing the structural and non-cost barriers that are getting in the way of projects,” she told me. That includes speeding up permitting and building more transmission. Even if Democrats win a trifecta in 2028, she said, she’d caution against trying to reinstate the credits on another party-line vote.
The biggest lesson from the IRA was that “for legislation to be durable, it needs to be bipartisan,” she said, “and I don’t anticipate enough Republican support for wind and solar tax credits to get that across the finish line.”
There is one corner of the clean energy industry that’s been vocal about its concerns: solar manufacturers. The tax credits — and specifically the bonus they offered for using domestic content — generated demand for U.S.-produced technology to an extent that reshaped the American solar manufacturing landscape. The United States now has enough solar manufacturing capacity to meet domestic demand two times over, much of which was built in the past four years.
The caveat to that statistic: Those new factories mostly assemble the final solar modules. The parts still come from elsewhere, primarily China. Manufacturers have only just started to onshore the rest of the solar supply chain, with just a small handful of factories currently operating or in development to produce cells, ingots, wafers, polysilicon, and other subcomponents. Manufacturers like Qcells, which is building some of that upstream capacity at its factories in Georgia, argue that it’s crucial to national security to diversify the supply chain away from China.
“We see domestic content as probably the most critical tool to supporting the factories that we’re investing in,” Marta Stoepker, the head of corporate communications for Qcells, told me. “Not having direct access at home to that technology opens a myriad of vulnerabilities from an energy standpoint. Until we can actually catch up, we need policies that are really, really proactive and aggressive to onshore.”
Tax credits aren’t the only option. Protective trade policies like tariffs on imported modules and anti-dumping duties have also helped. And Stoepker and Martin Pochtaruk, the CEO of solar manufacturer Heliene, both suggested that permitting reform could be another potential vehicle to support domestic manufacturing, for example by offering faster approvals to projects that use U.S.-made equipment.
The problem with that idea, Gibbs told me, is that it means adding additional administrative complexity to a policy that’s supposed to remove red tape.
Everyone I spoke to agreed that in the near term, the most important thing Congress could do to help clean energy is break down some of the non-cost barriers to development through permitting reform. Some, like Gibbs, were optimistic that a package could come together by the end of the year. She argued that both parties have learned they can’t afford to wait for the perfect deal. “Every single year of inaction on permitting reform means that less new energy gets built, and that’s higher cost for consumers,” she said.
Representative Jared Huffman, the ranking member on the House Natural Resources Committee, was less sure. He told me that as long as the Trump administration continues to shut down clean energy projects, “I don’t think Democrats can engage in a serious way with Republicans on permitting reform.”
When I reached out to Democrats in Congress, I asked them whether they still saw a need for solar and wind incentives, whether tax credits were still their favored mechanism, or if there were other ideas being tossed around. The response was nearly unanimous — they told me they were determined to restore the tax credits. “Bottom line, the tax credits worked and the U.S. saw a clean energy boom like never before,” Senator Ron Wyden of Oregon, who serves as the ranking member of the Senate Finance Committee, told me in an email. “So we need to put that framework back in place.” The only departure from that narrative came from a Hill staffer who told me there was a general lack of imagination in the Democratic caucus about where energy policy and climate policy should go next, hence the focus on the tax credits.
While nobody thinks restoration will be possible under Trump, some in Congress are already preparing for the next opening. Two Democrats in the House, Sean Casten from Illinois and Mike Levin from California, introduced the Energy Bills Relief Act in March, which would reinstate the credits, among other policies to support energy affordability. In an interview, Representative Levin told me he thinks it’s become “one of the consensus House Democratic blueprints for energy affordability.” The tax credits are “a tried and true way to incentivize people to build clean energy, for consumers to invest in clean energy,” he said.
For Huffman, who supports Levin and Casten’s bill, the tax credits aren’t necessarily about helping wind and solar compete. The point is to get off of fossil fuels faster. “If you believe the science that we are in a race against time to avoid tipping points that could make this planet unlivable,” he told me, “then I think you lean towards a more aggressive policy of speeding up this transition, and that’s where I fall.”
Editor’s note: This story has been updated to reflect the abbreviated placed-in-service requirement for solar and wind projects that begin construction after July 4 of this year.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The Trump administration has asked a court to re-examine a key permit for Revolution Wind in Rhode Island.
This is Heatmap Daily, an evening news digest written by our executive editor. Subscribe here.
At the end of the day, the biggest threat to the bipartisan permitting deal probably isn’t green groups, the fossil fuel industry, or monopoly utilities. It’s President Trump himself.
The legislative proposal is meant to constrain the president from tampering with clean energy projects — and if it passes, then some of its provisions seem like they could do so. But in order for it to pass, Trump must adhere to the deal that he brokered with the bill’s Senator Democratic negotiators, Sheldon Whitehouse of Rhode Island and Martin Heinrich of New Mexico.
Under that deal, the Trump administration must allow the 30 wind farms held up by what is normally a Department of Defense box-checking exercise to proceed. (Trump himself agreed to allow these projects to move forward, according to Politico reporting from last month.) More broadly, the administration has to make a show of good faith that it will return to what Whitehouse has called “regular order” on wind and solar permits. That could include approving a longer list of more than 200 onshore wind projects held up in the queue.
That somewhat informal deal is now facing its biggest test yet. On Friday, the Department of Justice filed a motion in court to re-examine a key permit granted to Revolution Wind, a nearly complete offshore wind farm being built off the coast of Rhode Island. The filing was first reported by Bloomberg.
Revolution Wind is one of six Biden-era offshore projects that is now operating or at least still moving forward. It could eventually produce as much as 700 megawatts of electricity. (Other offshore wind projects have accepted Trump’s $4 billion payouts.)
This isn’t the first time that the Trump administration has gone after this particular offshore project: The White House fought, and then resoundingly lost, an effort to stop work on Revolution Wind last year. But the timing of the filing — and the fact that it’s happening in Senator Whitehouse’s backyard — could make this filing far more significant.
In a post on X, the White House energy official Jarrod Agen seemed to play down the legal move without fully disowning it.
“This is an old lawsuit brought by the local community—who had serious concerns about this project—against the Biden Administration!,” he wrote. (The lawsuit in question was filed by Green Oceans, an anti-wind-energy group. Its law firm has what The New York Times described as “close ties” to the conservative legal movement.)
The White House still supports permitting reform, Agen added, adding that “the media should stop their attempts to blow up a GREAT deal for the American people!”
Sorry, Jarrod — we’re just doing our job. We asked Senator Heinrich and Whitehouse’s offices for comment, but didn’t hear back before publishing time. We’ll keep following this story.
A bipartisan group of senators proposed major reforms to the country’s environmental laws last month in an effort to speed up the federal approval process for energy projects of all kinds. If it passes, one of the Bipartisan American Affordability and Jobs Act’s biggest changes would be transforming the U.S. court system’s role in federal environmental reviews.
The bill would constrain who can challenge federal environmental decisions in court, which courts can hear those challenges, what plaintiffs can argue in those cases, and what remedies are available when the plaintiffs win. In particular, it would become a lot more difficult — though not impossible — for outside groups to stop construction on a project or vacate a permit if they deemed it to be environmentally risky.
Part of the motivation for the bill, at least among Democrats, is the idea that the National Environmental Policy Act, or NEPA, has become a significant obstacle to building clean energy projects and the infrastructure required to connect them to the grid. The bill includes a number of changes to NEPA that would expedite environmental reviews and prevent legal challenges under NEPA from dragging out project timelines.
But the bill’s restrictions on judicial remedies may be the most significant change, several legal experts told me. “My perhaps overly simplistic view, perhaps a really cynical view, is that the remaining 100 pages of the bill devoted to NEPA are all going to be irrelevant in light of that remedy provision,” said Matthew Littleton, a lawyer who previously served as deputy assistant attorney general at the U.S. Department of Justice’s Environment and Natural Resources Division under the Biden administration.
NEPA is an information-gathering statute. It says that when the federal government makes certain decisions, such as issuing permits or regulatory rules, it must consult with all of the agencies with relevant expertise, invite public comment, and, if the decision could have significant effects on the environment, conduct a wide-ranging assessment of those effects that includes comparisons to alternative actions.
Depending on the decision at hand, the government may have to do some of this analysis under other environmental laws, such as the Clean Air Act and Clean Water Act, but those requirements are narrower. NEPA fills in the gaps. While a Clean Air Act analysis may look at whether a project complies with federal pollution limits, a NEPA analysis would assess the broader effects of the pollution on local communities and surrounding wildlife, and consider whether locating the project elsewhere could accomplish the same goals with reduced risk.
While NEPA can inform an agency’s decision, the law does not require the agency to act on that information. If a NEPA review of an oil leasing program turns up substantial risks, for example, the government can still move forward with it unchanged. If an environmental group sues the government for not considering all of the relevant impacts, or studying enough alternatives, or getting some aspect of the analysis wrong, however, the court can vacate the agency’s decision, or at least issue an injunction on the lease sale while the agency addresses the issue.
A Supreme Court decision last year already significantly narrowed NEPA, giving agencies more discretion to decide how much environmental analysis they need to do on a project’s upstream and downstream effects. Experts expected the ruling to make it much harder for outside groups to win an injunction on a project or vacate a permit.
The new bill would go much farther. If communities or other stakeholders sue the government for violating NEPA and win, the courts could no longer issue an injunction or vacate the government’s decision. The bill would leave the courts with a single remedy: forcing the agency to address whatever gap in its analysis the lawsuit revealed.
To Littleton, this change would make NEPA more or less irrelevant. Today, he explained, agencies and developers face the risk that if they do not do a thorough job complying with NEPA, the courts could suspend their decisions, vacate their permits, or pause construction on their projects. It’s hard to know how big of a role that risk plays in agency decision-making, but if it disappears, so too does the incentive for anyone to spend time on a NEPA analysis.
Agencies are under-resourced and have a lot on their plates, Littleton said. “If at the end of the day you know a court is not going to stop you, even if you completely ignore the statute, you’re going to take the action as quickly as you can, consistent with your other obligations.” In other words, the worst that could happen is that a federal court tells the relevant agency to go back and do some more paperwork while construction continues.
The bill would make the same changes to the National Historic Preservation Act, a similar procedural law that requires agencies to study a decision’s effects on properties of cultural or historic significance. “If Congress has decided that NEPA and the NHPA have outlived their usefulness or do more harm than good, people should be willing to own that and say it and explain why that’s so,” Littleton said. “And if it’s not so, then maybe they need to figure out how to have a far narrower NEPA or NHPA review, but something where it actually matters if you don't do it.”
To be clear, none of this means there will be no way to stop a project from being built or to vacate its permits. Outside groups can still challenge agency actions under the Administrative Procedure Act, Alex Mechanick, an assistant professor at Johns Hopkins and a former senior counselor in the Office of Management and Budget under the Biden administration, told me. The APA is a larger umbrella law that says agencies cannot violate the Constitution or federal regulations or act arbitrarily or capriciously.
“Arbitrary and capricious action is already unlawful under the APA and could lead to agency action being vacated or enjoined regardless of BAAJA,” Mechanick said. A court might find that an agency violated the APA if a decision had undeniably worse environmental costs than benefits, if a less damaging option offered the same benefits, or if the agency simply chose not to analyze a relevant aspect of the decision. If the Interior Department was considering a new oil and gas leasing plan and didn’t consider effects on local wildlife, a court might deem that arbitrary and capricious. If the agency studied those effects, found significant risks, and then ignored them entirely with no explanation, that could also constitute a violation of the APA.
Littleton didn’t disagree with Mechanick’s assessment. If the bill passes, he said, the NEPA process may become the mechanism agencies use to comply with the APA rather than an end in itself.
The bill makes a more far-reaching change to legal challenges under the Clean Water Act. That law requires developers to secure a Section 404 permit when their project involves placing dredged materials into a body of water or wetland. It asks the Army Corps of Engineers to collect public comments, analyze the environmental impacts, and evaluate alternatives — much like NEPA. In this case, however, the analysis is not just procedural. Depending on what it reveals, the Corps may be legally required to deny the permit.
As with NEPA and the NHPA, the Senate bill would remove a federal court’s ability to vacate a Section 404 permit if it finds a deficiency in the Army Corps’ analysis. But the bill also specifically prevents vacatur for challenges under the APA. In either case, there is an exception for if the court finds that the “activities authorized under the permit would present an imminent and substantial danger to human health or the environment.”
Mechanick called this a “timing rule,” since the court’s options will depend on how far along the project is. The agency either has enough time to act before harm is imminent, or it doesn’t. “I don’t understand why you should have to wait until the harm is imminent to enjoin the agency,” he said, “but I suppose the idea is that this is a lighter touch remedy until it’s really a do-or-die moment.”
On Korea’s Westinghouse wishes, a lithium deal, and British heat pumps
Current conditions: New York City’s temperature is set to rise as high as 80 degrees Fahrenheit this week before plunging as the coldest weather so far this season blows into the Northeast • Temperatures in Denver have been above 80 degrees for the past 11 days straight • Nearly 200,000 households, mostly in Florida, are still without electricity after Hurricane Isaias.
In theory, news of President Donald Trump’s deal with Russia to pump millions of tons of diesel into the global market should have eased oil prices. Instead, all three major crude benchmarks spiked Monday by nearly 1.5%. Only West Texas Intermediate, the U.S. metric that has largely evaded the worst knock-on effects of conflict in the Middle East, remained below $100 per barrel. The hike came as the Houthi attacks on Saudi Arabia over the weekend weighed heavily on investors’ minds, eclipsing whatever impact the diesel deal could have had.
Speaking at an industry summit in Riyadh, from which executives from Western oil majors bowed out at the last minute following missile strikes on the airport in the Saudi capital, the head of the country’s state oil company warned that not even Saudi Arabia had the capacity to protect all the supply routes off its coasts for getting hydrocarbons from the region to the world. “No nation, even one as capable and confident as ours, can safeguard them alone,” Aramco CEO Amin Nasser said, according to Arab News.
TotalEnergies took more than $1 billion from the Trump administration to kill off its offshore wind projects. But don’t take that as a sign the French energy behemoth is abandoning American renewables. The company’s joint venture with private equity giant KKR announced a deal to add 700 megawatts of solar to its portfolio of 1.4 gigawatts. The $1.2 billion acquisition includes three utility-scale solar farms in Texas and Ohio that are expected to reach commercial operation in the first quarter of next year.

South Korea is in a bind. The Korea Electric Power Corporation, through its subsidiary Korea Hydro & Nuclear Power, represents the most competent financier and builder of nuclear reactors anywhere in the democratic world, having constructed the United Arab Emirates’ debut atomic power stations relatively on time and on budget compared to U.S., French, and British projects. But the leading Korean reactor, the APR1400, allegedly borrowed from the American nuclear champion Westinghouse’s pressurized water reactor design. A yearslong legal feud ended last year with a settlement that bars the Koreans from bidding on projects in Europe or North America. In a deal this month with the Trump administration to stave off tariffs, Seoul has agreed to help finance and construct six Westinghouse AP1000s and two of its own APR1400s in the U.S., giving the Americans a leg up on nuclear construction and the Koreans a foothold in North America.
In South Korea, where the Westinghouse settlement has widely been considered unfair, the government is signaling other plans to gain more leverage. For starters, KEPCO’s chief executive Kim Dong-cheol said the claim that the settlement requires the company to pay Westinghouse $2 billion per nuclear plant to use its technology was misunderstood. “It is true that $2 billion is the ceiling, but it does not mean we will pay all of it,” he said. But the more eyebrow-raising detail in his interview with the financial newspaper Business Korea is that KEPCO is considering a plan to acquire an equity stake of between 5% and 10% in Westinghouse. Rumors of a potential deal to buy part of Westinghouse have been circulating in the Korean press for weeks now. Anything seems to be on the table these days, but when I have asked multiple sources on the U.S. side about it, all of them shrugged off the possibility to me.
Sign up to receive Heatmap AM in your inbox every morning:
When The New York Times ran a glowing profile of the lithium startup EnergyX back in 2021, industry sources at the time mocked the coverage to me as too credulous — a sign of how unsophisticated the popular American press was at writing about critical minerals at the time. The Wall Street Journal glazed the firm’s chief executive, Teague Egan, in its own profile three years later. So it was with light surprise and amusement that I read Reuters reporter Ernest Scheyder’s latest story about the company: EnergyX just signed a $2 billion binding offtake to supply the commodities giant Trafigura with the battery metal from Chile and the U.S. It’s one of the largest deals ever tied to direct lithium extraction, the technology EnergyX is trying to commercialize, which uses less water than standard methods of mining the metal. The 10-year contract comes amid growing demand from the stationary battery storage market as the grid and data centers eat what unsteady sales of electric vehicles has left on the plate.
The British government plans to cut hundreds of millions of dollars from the national program to upgrade boilers in England and Wales, providing £9,000, or nearly $12,000, to finance the switch to heat pumps. The cuts, which the Financial Times reported Monday had drawn a backlash against the ruling Labour Party, are part of a broader bid by Prime Minister Andy Burnham to slash £2 billion in the budget to make way for more military spending. The reductions began in June under former Prime Minister Keir Starmer with a study to identify potential cuts. Starmer singled out the Department of Energy Security and Net Zero, particularly after the agency received a 16% annual increase to fund projects such as the nuclear buildout at Sizewell C, carbon capture infrastructure, and insulation to make homes more energy efficient.
The move is sure to ripple across the climate policy world. Roughly a week ago, Daniel Aldana Cohen, an assistant professor at the University of California at Berkeley, was extolling the benefits of ramping up U.S. production of heat pumps in response to soaring heating prices this winter due to the fossil fuel supply crunch. “Every year that we don’t do a wartime mobilization on heat pumps, we’re ruining people’s lives,” the early advocate of a Green New Deal wrote in a post on X. “Heat pumps will always outperform heating oil, cut costs, add summer AC. And would be fantastic for labor, small businesses, worker co-ops.”
As quickly as a spark of atmospheric electricity strikes, the Ford F-150 Lightning disappeared, with the final model of the all-electric pickup truck rolling off the assembly line last year. Now, Bloomberg reports, “it has become one of the most coveted cars in America and a glowing ember in the red-hot market for used electric vehicles.” The price of a used Lightning is 50% to 60% of the sticker price, which one expert told the newswire “is really a sweet spot.”