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While wind got hammered, the fastest growing renewable energy source emerged relatively unscathed.

President Trump’s first executive actions put the wind industry on ice, undermined the transition to electric vehicles, and paused funding for EV chargers. But so far Trump has done little — if anything — to stymie the country’s fastest growing clean energy technology: solar.
This isn’t a huge surprise. On the campaign trail, Trump blasted former President Biden’s climate and clean energy policies from every angle, consistently criticising wind energy and promising to “end the EV mandate.” But any time solar came up, Trump admitted that he kind of, sort of liked it.
“By the way, I’m a big fan of solar,” Trump said at the presidential debate in September, before complaining about how much land solar farms take up. The following month at a roundtable in Miami, he said “I like, you know, some applications where you have it on a roof or you have it on something,” before launching into familiar complaints about land use.
This raises the question of whether the president might include solar farms in his plan to “unleash American energy.” More solar capacity was added to the grid last year than any other energy source, after all. As of September, it made up 78% of all new capacity additions. Rooftop solar is also one of the quickest and most direct ways for consumers to lower their energy bills, so the technology fits well within Trump’s agenda to lower energy costs.
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The Solar Energy Industries Association did not respond to my email requesting an interview, but the trade group is evidently trying to make this case to the new administration. “It’s clear that we will not reach President Trump’s vision for American energy dominance or technological innovation without continued solar and energy storage growth,” Abigail Ross Hopper, the group’s president, said in a statement published after the inauguration.
Solar’s exclusion from Trump’s day one orders might be viewed optimistically as an implicit endorsement of that position, Harry Godfrey, a managing director at Advanced Energy United, told me. Other clues, however, are not so encouraging, he said.
For example, in Trump’s executive order declaring an energy emergency, he excluded solar from his definition of “energy” or “energy resources” that will get expedited approvals. Solar was not mentioned in any of his energy-related actions on Monday.
“If we’re facing a real energy emergency, and we need to address this, shouldn’t it be an all hands on deck activity?” Godfrey said. “That’s obviously bigger than just solar,” he added.
Godfrey also observed that solar may not have gotten off completely unscathed. Trump froze all federal funds allocated by the Inflation Reduction Act and the Bipartisan Infrastructure Law for 90 days, which could affect any money remaining in solar-related programs.
Naveed Hasan, the vice president of North American strategy for the solar company Sungrow, told me he’s less worried about the IRA freeze, as it’s only temporary. “From what I understand, the funds still have to be spent. They cannot be just completely cut through an executive order — that’s going to require the reconciliation process, going through Congress.”
It’s likely too early to draw any big conclusions about how solar development will fare under Trump. It’s unclear whether his administration or the new Congress want to make changes to the tax credits available for clean energy, including for solar panels, for example.
The president has also not yet revealed the full extent of his plans to increase tariffs on goods from China, which could hurt solar’s cost competitiveness. On Tuesday night, Trump said he was considering imposing a 10% tariff on Chinese goods beginning in February, which is far below the 60% he promised on the campaign trail, but doesn’t mean he won’t increase it later. The announcement followed a memo he sent to various agency heads on Monday which included a directive for the U.S. Trade Representative to “consider potential additional tariff modifications … particularly with respect to industrial supply chains and circumvention through third countries.”
Then there’s Trump’s plans to ramp up oil and gas production and clear hurdles for new fossil fuel plants and exports, which could indirectly hurt the market for solar. “That’s the major concern we have,” Hasan told me. “I think that could definitely impact the demand for renewable energy if those fossil fuel projects are considered more economical or more attractive for financiers.”
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With investment in AI booming, any business that can promise quick generation is looking pretty good right now.
It’s a good time to be selling stuff to data center developers.
That was the message from the beginning of earnings season for the renewables and the energy industry: If you can promise power to data centers quickly, you’re doing good business. (If you’re just a software business that investors think will be displaced by large language models, the value of your company has probably fallen by a quarter so far this year).
Caterpillar, while better known for its gargantuan mining and construction equipment, also sells gas turbines and reciprocating engines — basically giant car engines that run on natural gas. Its power generation business is now by far its biggest segment, outpacing oil and gas and industrial, and its revenue of $3.2 billion in the fourth quarter was 44% more than a year earlier.
“Sales increased in large reciprocating engines, primarily data center applications. Turbines and turbine-related services increased as well,” the company said in its earnings release late last month. And it’s not likely to stop: “We anticipate growth in power generation for both CAT reciprocating engines and solar turbines driven by increasing energy demand to support data center build-out related to cloud computing and generative AI.,” the company’s chief executive officer Joe Creed said on a call with analysts. We “talk to hyperscalers and large data center customers weekly and make sure we stay in line with their plans.”
And those hyperscalers are going to spend even more in 2026.
Big tech companies have some $600 billion in capital expenditures planned for this year, with the growth in spending coming largely from data centers.
And while the vast majority of the cost of owning an AI datacenter is the chips, you need power to run a data center, and the more quickly you can get that power, the sooner your data center can be up and running.
This “speed-to-power” problem has thus put a massive premium on any power generation technology that can be deployed quickly.
Like fuel cells.
Bloom Energy, the long-tenured fuel cell company, reported around $780 million in quarterly revenue in the fourth quarter, up 36% from the year before. “Our growth has been fueled by seismic changes in customer attitude towards power,” the company’s founder and chief executive, KR Sridhar, said on the company’s earnings call Thursday. “On-site power has moved from being a decision of last resort to a vital business necessity. This shift has led large power users to seek Bloom to fulfill their needs. Our demand from data centers and commercial and industrial or C&I customers is secular and growing.”
Bloom has been kicking around for two decades, but it took the data center boom for the company to really, well, bloom.
Large turbines for natural gas power are sold out through the end of the decade; meanwhile, Bloom claims to be able to get fuel cells on site before the data center itself is fully constructed. “We can ramp up and provide that additional power to that customer before they are ready,” Sridhar said. “Typically, it takes more than a year to stand up a greenfield data center. It takes more than a year to stand up a factory, from permits all the way to full implementation. We can be ready for them before then.”
While on-site power can be crucial to actually beginning operations, data centers tend to want to connect to the grid eventually, which means more demand for services from utilities and large scale developers of power. The utility and developer NextEra has long promoted the “speed to power” narrative, pointing out that it’s far easier to procure and assemble solar panels and batteries than it is gas turbines.
“Battery storage now represents almost one-third of our 30-gigawatt backlog, with nearly 5 gigawatts originated over the past 12 months. We don’t see this demand slowing. Nearly every region in the country needs capacity, and battery storage is the only new capacity resource available at scale,” NextEra chief executive John Ketchum said on the company’s earnings call late last month.
He also said that he would be “disappointed” if the company’s plans for 15 gigawatts of “data center hubs” doesn’t double to 30 gigawatts by 2035. These hubs, Ketchum said, will be powered “through a mix of new renewables, battery storage and gas generation.”
The Minnesota-based utility Xcel said it expects to have 3 gigawatts of contracted data centers by the end of this year and six by 2027.
“If you think about where we sit in sustainability goals as a company, where these hyperscalers and data centers and customers of data center developers wanna be, it’s a highly sustainable product,” Xcel’s chief executive Bob Franzel said on the company’s earnings call Thursday.
As for the companies actually making the solar panels and batteries that could power data centers, they largely haven’t reported earnings yet, although the American solar manufacturer First Solar did get a scare recently when its share price dropped 13% last Thursday — and no, not because of a change in tariffs or tax credits or permitting rules. It was because Elon Musk said he wanted to build 100 gigawatts of solar panels a year. The speed to power question, at least for Elon Musk, is not limited to Earth.
“We think the best way to add significant capability to the grid is solar and batteries on Earth and solar in space,” Musk said on Tesla’s fourth quarter earnings call last week.
And it’s blocking America’s economic growth, argues a former White House climate advisor.
Everyone is talking about affordability and the rising cost of energy to power our lives — with good reason. Leading up to Winter Storm Fern, natural gas prices skyrocketed more than 50% in just two days. Since President Trump took office, electricity prices have risen by 13%, despite his promise to cut them in half in his first year. Now, 16% of U.S households are behind on their electricity bills, and that number is expected to rise throughout the winter.
And we all know that much more energy will be needed in the years ahead to meet our electrification needs. The Trump administration and its well-funded allies in the fossil fuel industry are blocking our ability to put the cheapest, most reliable energy onto the grid. They are standing in the way of progress, pushing a false narrative that our country needs more dirty, expensive energy to bring costs down.
Our state and local leaders, environmental advocates, and businesses are the ones pushing to build more. They are the ones focused on a pro-growth agenda that invests in the U.S. economy and meets new energy demand with clean energy. Now is the time for all Americans to stand together, not in anger or frustration, but with hope, inspiration, and resilience. We already have the technologies, policies, and practices we need to deliver a cleaner, safer, and more affordable world. We just have to build it.
It’s time to push for common-sense policies that quickly scale up the cheapest forms of energy — solar, wind, and battery storage — to protect our health and natural resources. And it’s high time we let families keep their hard-earned money rather than pay to keep dirty coal and other volatile and expensive fossil fuels — including natural gas — alive.
Our federal government is propping up polluting sources of energy that are draining our economy. They are forcing coal plants to stay open while costing ratepayers millions. In fact, Trump’s U.S. Department of Energy just extended its order to keep Michigan’s JH Campbell coal plant running for four more months, forcing consumers to pay a whopping $113 million in costs so far, despite the state’s utility saying that “no energy emergency exists.”
Trump’s Environmental Protection Agency is stripping states and Tribes of their authority to protect water resources that their communities depend on to allow more oil and gas pipelines and other fossil fuel infrastructure to be built, doubling down on the very problem that is driving prices up. Retail natural gas prices have risen 11% year over year, far outpacing inflation. Moreover, gas price spikes have been a major factor in rising retail electricity bills, particularly in the Northeast and Southeast. We’re seeing similar cost increases as a result of Trump’s liquified natural gas export policies and his constant attacks on the Inflation Reduction Act.
Let me be clear: Renewable energy is the fastest and cheapest option to add power to the grid. Period. Full Stop. Already nearly 80% of planned power plant capacity is tied to renewable sources, according to Cleanview.co. Solar made up 98% of new capacity this fall. States with the highest levels of wind and solar generation, like Iowa and Oklahoma, have the lowest utility bill rate increases in America. States like New Mexico are already ahead of schedule to meet their clean energy goals, while also keeping rates down.
So don’t buy what the Trump administration is selling. We can have long-term, stable economic growth built on cheap, clean energy that doesn’t trash our watersheds and destroy the places we love. In Nevada and Utah, the Sierra Club worked alongside Fervo to secure a new deal to supply 24/7 carbon-free energy to a large Google data center built with new environmental principles for advanced geothermal. And in Michigan and Illinois, a broad coalition of environmental leaders worked with industry stakeholders to achieve common sense permitting reform to facilitate faster adoption of more affordable energy onto the grid in the Midwest.
We all know from experience that the fossil fuel industry will do everything it can to force us to stick with the status quo. They aren’t going to stand idle and give up their foothold on dirty energy, which they have long enjoyed. That’s why we must deliver pro-growth solutions and stand up against those blocking progress to line their pockets with families’ hard-earned money.
It’s time for us to take charge and build a clean, affordable energy future. We need to call on our policymakers in states and cities to stand up for their constituents. And we need business leaders to invest in our economic future. Now is the time to demand the healthy, low-cost, clean energy future that empowers all of us.
Plus, consolidation in carbon removal.
On Wednesday, I covered a major raise in the virtual power plant space — a sector that may finally be ready to make a tangible impact on the grid after decades of theorizing. Beyond that, investors continued to place bets on both fusion and fission, as the Trump administration continues pushing for faster deployment of new nuclear reactors. This week also saw fresh capital flowing to fleet electrification and climate-resilience solutions, two areas that have benefited less, shall we say, from the president’s enthusiasm.
The fusion startup Avalanche Energy raised $29 million to develop its tabletop-sized microreactors and scale its fusion test facility, FusionWERX, in Washington State. Led by RA Capital Management and joined by existing climate tech-focused backers such as Congruent Ventures and Lowercarbon Capital, this funding round follows what CEO Robin Langtry described to me as multiple breakthroughs in stabilizing the company’s fusion plasma and ridding it of impurities such as excess oxygen.
“Now we really have a very straight technical path to get to this Q > 1 fusion machine,” Langtry told me, referring to the point at which a fusion reaction produces more energy than was used to initiate it, often called “scientific breakeven.” Now that the pathway to commercial viability is coming into focus, Avalanche is starting to invest in expensive, longer-lead-time equipment such as superconducting magnets and systems to manage the fusion fuel, which it expects to arrive at the FusionWERX facility in early 2027. At that point, the startup will begin running tests that could achieve breakeven.
Avalanche is pursuing a technical approach called magneto-electrostatic fusion, a lesser-known method that uses strong magnetic and electric fields to accelerate ions into fusion-producing collisions while keeping the plasma contained. The startup aims to commercialize its tech, which Langtry says has numerous defense applications, in the early 2030s. In the meantime, much of the latest funding will go toward scaling the FusionWERX facility, where other fusion entrepreneurs and academics can test their own technologies — offering the startup a nearer-term revenue opportunity.
The Paris-based small modular reactor company Newcleo announced an $88 million growth investment, as existing European investors doubled down and new EU-based industrial backers jumped aboard, bringing its total funding to over $760 million. The startup, which is now eyeing expansion into the U.S., differentiates itself by running its reactors on recycled nuclear waste and cooling them with liquid lead, which is intended to be safer and more efficient than conventional standard water- or sodium-cooled reactors.
The startup is already investing $2 billion in a strategic partnership with the Sam Altman-backed SMR company Oklo to develop the infrastructure needed to produce and reprocess advanced nuclear fuel in the U.S. Newcleo’s CEO, Stefano Buono, told The Wall Street Journal that he expects to benefit from the Trump administration’s push to expedite domestic nuclear development, which he hopes will help Newcleo speed up its own commercialization timeline. Currently the company plans to complete its first commercial units sometime after 2030.
The company also has a number of creative collaborations underway with Italian firms. These include partnerships with the shipbuilder Fincantieri, which is exploring the potential of nuclear-powered vessels, engineering giant Saipem which is looking to develop floating nuclear plants, and the metals equipment company Danieli, which aims to use SMRs for green steel production.
Mitra EV, a commercial vehicle fleet electrification platform, just raised $27 million in a funding round that includes an equity investment from Ultra Capital and a credit facility from the climate-focused investment firm S2G Investments.
The startup focuses on small- and medium-sized businesses, which often face capital constraints and lack a dedicated fleet manager. While the financials of fleet electrification often pencil out for these companies, the real barriers frequently lie in the maze of logistics — acquiring electric vehicles, building charging infrastructure, coordinating with utilities, and navigating a web of incentive programs. Mitra EV aims to streamline all these tasks through a single platform, claiming to offer immediate cost reductions of up to 75%.
The new capital will help Mitra to expand its suite of offerings, which includes EV leasing, overnight charging infrastructure, and access to a network of shared fast-charging hubs designed specifically for fleets. For now the company operates exclusively in California, but it plans to deepen its presence across the state before expanding into additional regions. Other states such as Oregon, Colorado, Michigan, and New York have also adopted zero-emissions fleet mandates, creating ready markets for the company if it continues to grow.
The software startup Forerunner raised $39 million to scale its platform for local governments to manage and mitigate environmental risk. The company’s AI-powered tools help to centralize detailed geospatial data such as land parcels, infrastructure, inspection records, permitting information, hazard zones, and more into a single system, allowing communities to run stronger risk assessments, stay compliant with environmental regulations, and coordinate responses when floods, storms, or other emergencies hit. The startup works with over 190 local and state agencies across 26 U.S. states.
The round includes a $26.3 million Series B led by Wellington Management, alongside a previously unannounced $12.7 million Series A led by Union Square Ventures. Forerunner first gained traction by helping governments manage floodplains, and this new capital will help fuel its expansion into new areas such as infrastructure management, wildfire risk, and code enforcement.
All of this is unfolding as the Trump administration slashes staff at the Federal Emergency Management Agency, even as extreme weather events are becoming more frequent. The result is mounting pressure on state and local governments, who often still rely on fragmented, outdated systems to get a comprehensive view of their communities and the environmental hazards they face.
Carbon removal company Terradot has acquired the assets, intellectual property, projects, and removal contracts of one of its former competitors, Eion. Both are pursuing a method of carbon removal known as “enhanced rock weathering,” which accelerates the natural process by which CO2 in rainwater reacts with silicate rocks, forming a stable bicarbonate that can permanently lock away CO2 when it’s washed out to sea.
While typically this process takes thousands of years, spreading crushed minerals like basalt or olivine on agricultural fields can dramatically accelerate the process — though precise measurement and reporting remains a challenge. Terradot’s early projects have focused on basalt rocks in Brazil, whereas Eion operates in the U.S. doing olivine-based weathering. This deal could signal a forthcoming wave of mergers and acquisitions in the sector, where there’s a plethora of startups vying to commercialize novel methods of permanent carbon removal.