Trump clean energy tax credit cutoff drives project rush as prices set to soar

June 26 (Reuters) - U.S. 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.

What happens to solar subsidies after July 4?

How much could renewable energy prices increase?

Why are developers rushing to secure tax credits?

What's driving increased demand for renewable energy projects?

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.

The shift comes as Trump administration policies seek to slow renewable energy development, increasing reliance on fossil fuels despite natural gas turbine supply bottlenecks and mounting pressure for federal support for coal.

U.S. President Donald

Fuente original: Yahoo Finance (https://finance.yahoo.com/energy/articles/trump-clean-energy-tax-credit-110500622.html)