Energy Cleanliness in Jeopardy: GOP Proposal Threatens Hundreds of Gigawatts

The "Big Beautiful Bill," a piece of legislation currently being considered by the Senate, aims to rapidly phase out key clean-energy tax credits. This bill, passed by House Republicans in May 2025 and signed into law by President Donald Trump on July 4, 2025, could have significant consequences for the U.S. energy system.

According to an analysis by research firm Cleanview, the phase-out of clean-energy tax credits could affect more than 600 gigawatts' worth of solar, battery, and wind projects. These projects, slated to come online in 2028 or later, are at risk due to the current version of the legislation.

The bill stipulates that projects must begin construction within 60 days of the bill's passage and come online before the end of 2028 to be eligible for the tax credit. Projects scheduled for completion in 2028 that can't break ground with just two months' notice or which might hit snags that push their completion into 2029 are also at risk.

The potential effects of the bill could lead to a decrease in the country's primary source of new electricity - clean energy. Moreover, the bill could cast uncertainty over this vital source, especially given the rising power bills and surging energy demand.

It's important to note that the entirety of the U.S. had a generating capacity of around 1,200 gigawatts at the end of 2023. The 600-GW figure in the current interconnection queue is based on what's currently anticipated, and a good number of those projects won't get built regardless of the fate of the tax credits.

However, the current version of the legislation could potentially jeopardize 2028 projects that can't break ground with just two months' notice or which might hit snags that push their completion into 2029. Additionally, projects planned to be completed in 2029 and later are at explicit risk of losing their tax-credit eligibility due to the current version of the legislation.

The "Big Beautiful Bill" comes amidst a time when clean energy projects are crucial for meeting the country's energy needs. The bill's potential effects include the phasing out of clean energy tax credits and uncertainty for upcoming solar, battery, and wind projects. It's essential to consider these potential impacts as the legislation continues to be discussed and amended in the Senate.