Higher Power Costs Loom for Texas as Trump's Law Cuts Clean Energy Incentives

After President Trump signed the “One Big Beautiful Bill” on July 4, Texas, the nation's leading renewable energy state, may experience a sharp decline in new clean energy projects. Industry analysts warn that the rollback of comprehensive legislation's wind and solar federal tax incentives could reduce future electricity supplies, increase energy prices, and slow the state's transition to greener power.

The measure aggressively phases out sustainable energy incentives enacted under President Joe Biden's 2022 Inflation Reduction Act, which spurred record wind and solar production. Texas, the nation's top renewable capacity state, will suffer financially from the loss of those tax incentives.

Harry Godfrey, a representative from the national renewable energy trade organization Advanced Energy United, stated that we are essentially removing the financial support for these projects. Without subsidies, developers may struggle to secure financing or terminate projects.

Energy Innovation estimates that Texas could lose 77 gigawatts of additional power capacity over the next decade, enough to power 19 million homes. The state may add 27 gigawatts by 2035, instead of the 104 gigawatts expected under current patterns. “Texas is by far the biggest loser,” said group senior analyst Dan O'Brien. Florida is second with an estimated 50 gigawatts of loss.

Texas's tremendous investment in renewable infrastructure recently makes the impact especially obvious. The state's clean energy lobby defeated legislation last month that would have curtailed solar and wind development, arguing it would raise electricity bills and cause blackouts.

These worries failed to influence federal lawmakers. Republicans emphasized tax cuts and immigration crackdowns over green energy subsidies. Trump has long called renewables “unreliable” and “foreign-controlled.”

Without essential incentives, clean energy businesses and consumers may struggle in Texas and across the nation's fast-changing energy market.