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Spotlight

Solar’s Got a Better Shot Under Trump – For Now

Here’s where the real risks lie for the solar industry.

Trump.
Heatmap Illustration/Getty Images

Solar energy so far is avoiding the Trump-era challenge posed to wind energy. But it’s unclear the good times will continue, as chaos reigns in Washington and threats loom on the horizon.

Last week, Trump issued a 60-day pause on all permits for solar projects on federal lands. Many solar projects are not sited on federal lands, so there’s little Trump could do in the short term to stop those projects. But some utility scale projects definitely are on federal lands in the Southwest, most often in Nevada, where considerable opposition exists in rural, untouched pockets of the state. Several sit in various stages of the permitting process. In fact, there are over 12 gigawatts worth of challenged projects currently planned for the state, according to Heatmap Pro’s database.

Heatmap Pro data on Nevada\u2019s contested projects.

Developers and industry representatives I spoke with believe Trump will lift this pause on permits and let the solar projects flow through the pipeline. EDF Renewables, whose Bonanza solar farm was approaching the end of the permitting process when Trump came into office, told me they “have no reason to believe that the project should not be approved.” Balanced Rock Power, the developer of the Samantha solar project in Nevada which is in the early stages of permitting, told me the company is “continuing to work closely with” agencies “to complete all the major milestones on schedule.”

“President Trump has specifically said that he loves solar – and as energy demand soars, we know that solar is the most efficient and affordable way to add a lot of energy to the grid, fast,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, told me in a statement.

But there’s a quiet unease amongst some in the sector about whether recent actions around permits and federal funding mean the next shoe to drop is going to hit them.

Trump’s got complaints about solar and land use, including those he made in that presidential debate immediately after the “big fan” comment. There was also an interview with Fox News last week where he came out against utility-scale solar projects. “You know what else people don’t like,” Trump told host Sean Hannity. “Those massive solar fields built over land that covers 10 miles by 10 miles. I mean, they’re ridiculous, the whole thing.”

Brendan Bell, a top executive at asset manager Aligned Capital and a former senior official in DOE’s loan programs office, told me the biggest question in solar right now is “whether they can do anything to stop it.”

“If you’re developing a project on BLM land, you’re probably putting that on the backburner,” said Brendan Bell, a top executive at asset manager Aligned Capital. Bell served as director of strategic initiatives for the Energy Department’s Loan Programs Office under the Obama administration. “But that’s not the only place we build solar projects.”

Indeed, from a permitting perspective, it may prove quite tricky to undermine solar projects. Even on BLM land. That’s because permitting decisions and even indecision can be litigated. Rarely does the Bureau of Land Management actually deny projects – of any fuel type – so a step change against solar would require a wholescale change to how permitting staff ordinarily operate.

The most serious threat, in my view, is actually whether the Trump administration will take on the “protect farmland” mantle that activists in some states have used to derail large-scale solar projects. Under the Farmlands Protection Policy Act, the Agriculture Department is tasked with minimizing how federal programs impact the conversion of farmland to non-agricultural uses, attorney Bob Greenslade told me in an email. Farmland impacts “may be relevant” now to renewable energy development in any area with a federal nexus, including land use.

And there’s a nascent effort to strip tax credits from renewables projects sited on farmland. On Tuesday, Republican congressman Tom Tiffany of Wisconsin announced he would reintroduce legislation to disqualify renewables projects from receiving tax benefits under the Inflation Reduction Act if their project is on “prime farmland,” a term of art defined by the Agriculture Department.

Mark Fowler, director of government affairs for Ameresco, told me that he believes tax credits and access to federal funds will be a bigger issue for solar than permitting in the immediate term, especially in light of the (now lifted) Trump freeze on discretionary funds. Ameresco is an integrator and developer of renewable energy projects. “The biggest thing right now is uncertainty around the tax credits. The discussion right now is they’re going to change in some form the IRA tax credits. We don’t know what the changes are going to look like.”

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Q&A

How the Renewable Energy Industry Is Processing Trump 2.0

A conversation with Carl Fleming of McDermott Will & Emory

Carl Fleming
Heatmap illustration

This week we’re talking to Carl Fleming, a renewables attorney with McDermott Will & Emory who was an advisor to Commerce Secretary Gina Raimondo under the Biden administration. We chatted the morning after the Trump administration attempted to freeze large swathes of federal spending. My goal? To understand whether this chaos and uncertainty was trickling down into the transition as we spoke. But Fleming had a sober perspective and an important piece of wisdom: stay calm and remain on course.

The following conversation has been lightly edited for clarity.

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Policy Watch

Chaos in the Climate Kingdom

This week’s top news in renewable energy policy.

turbines.
Heatmap Illustration/Getty Images

1. Freeze, don’t move – The Trump administration this week attempted to freeze essentially all discretionary grant programs in the federal government. A list we obtained showed this would halt major energy programs and somehow also involve targeting work on IRA tax credits.

  • Despite a court ruling that was supposed to lift the freeze, key climate programs – like the EPA’s Solar For All effort – remain reportedly on ice.
  • Our guts here at Heatmap tell us there’ll be a lot more news to come on this front. Stay tuned.

2. Sorry, California – The Bureau of Ocean Energy Management canceled public meetings on the environmental impact statement for offshore wind lease areas in California, indicating the Trump wind lease pause will also affect pre-approval activities.

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Hotspots

Deathwatch for Atlantic Shores?

And more of the week’s top news in renewable energy fights.

Renewable energy fights across the country.
Heatmap Illustration/Getty Images

1. Atlantic County, New Jersey – The Atlantic Shores offshore wind project is on deathwatch.

  • Earlier today, Shell announced it would pull out of its 50-50 joint venture with EDF Renewables to develop the Atlantic Shores offshore wind project off the coast of New Jersey.
  • Atlantic Shores then sent us a statement unprompted, saying they’re “committed” to developing New Jersey’s first offshore wind site.
  • “Business plans, projects, portfolio projections and scopes evolve over time – and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential,” the statement read.
  • It continued: “While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits.”
  • As we previously explained, we anticipate this project to face challenges to the legality of its permits and leases, as previewed by the Trump administration.

2. Waldo County, Maine – The Sears Island saga is moving to the state legislature, as a cadre of lawmakers push to block construction of a floating offshore wind turbine construction facility there before Trump leaves office.

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