When President Donald Trump took office in January, the United States was enjoying record growth in renewable energy construction. And, thanks to incentives in two key pieces of Biden-era legislation, manufacturers were ramping up capacity for U.S.-based solar and storage production. However, with executive orders signed soon after his inauguration, Trump rescinded implementation of that legislation, throwing the entire future of such industries into uncertainty. Provisions in the One Big Beautiful Bill Act (OBBBA), passed in July, put even more strain on the green energy sector. 

With electricity demand on the rise, these moves targeting the fastest-growing suppliers of new energy resources raise a question—where will our power be coming from four years from now?

Primed for takeoff

Solar and storage installations scored record years in 2024. The 50 gigawatts (GW) of new solar represented the largest single year of new capacity added to the grid by any energy technology in more than two decades, according to 2024’s Year in Review report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Storage grew by about one-third in 2024 over its 2023 performance, according to Wood Mackenzie’s Q1 2025 U.S. Energy Storage Monitor. SEIA’s report noted solar and storage combined accounted for 84% of all new electric generating capacity added last year. 

A third Wood Mackenzie report, the Q1 2025 Wind Energy Monitor, reported that wind energy’s growth declined. Analysts noted carryover from previous policy provisions as a cause, with hopes this current year could see a turnaround.

Developers of all three technologies were predicting 2025 would be another boom year, thanks to tax incentives and other provisions in the Infrastructure Investment and Jobs Act and American Rescue Plan Act. 

That was then

Even with the anticipated continued growth in renewables, utilities and grid operators were scrambling to keep up with anticipated new demand to support artificial intelligence (A.I.) development. However, just as the country is seeing its fastest-­growing energy demand in decades, the current administration’s moves to reduce or eliminate solar and wind tax incentives is limiting developers’ ability to bring new resources to the grid.

Instead, the administration is working to keep open fossil fuel plants that have been slated for retirement and supports restarting nuclear plants that have already been taken out of operation. In July, the White House released what it called an A.I. ”action plan” that outlines steps to reduce environmental regulations related to A.I. data center development and prevent “premature decommissioning” of existing fossil fuel and nuclear resources.

Utilities are also proposing efforts to maintain aging coal plants and add new natural gas generation to address peak demand needs. These include Dominion Energy in Virginia, which has proposed extending the life of its Clover Power Station—originally slated for retirement this year—to at least 2040. In 2020, the state passed a law requiring the utility to generate all its electricity from renewable sources by 2045.

Developers also are working to bring already-retired nuclear plants out of mothballs. Efforts to restart Michigan’s Palisades nuclear power plant, which started operating in 1971 and was shut down in 2022, began in 2023. Power could be flowing again from its reactor later this year. The plant faced numerous operational issues prior to its closing by its former owner, Entergy. Holtec, its current owner, is known for its nuclear power decommissioning services and has no prior experience operating nuclear facilities. 

Similarly, Three Mile Island Unit 1 in Pennsylvania was decommissioned in 2019 for financial reasons. It’s now expected to restart by 2028. 

Short-term renewables scramble

The OBBBA’s solar and wind provisions require projects to either begin construction no later than July 4, 2026, or be placed in service no later than Dec. 31, 2027. Meeting either deadline qualifies projects for current tax credits. These tight schedules could create a short-term boom in renewable development. 

John Ketchum, president, CEO and chairman of NextEra Energy, the world’s largest wind and solar company, discussed this possibility in his second quarter earnings call in July. He said his company’s position in the market will give it an advantage as companies rush to find capital and start construction in time. 

And, as an example of how some states are seeking to meet their own deadlines for renewable energy procurement, the Maine legislature recently amended an earlier bill targeting farmland contaminated with PFAS (sometimes called “forever chemicals“)for green energy development. 

A bipartisan majority approved an “emergency preamble” that negated the standard waiting period of 90 days after a legislative session adjourns for a bill to become law. This required approval of at least two-thirds of legislators in the state House and Senate to pass.

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