California projects of wind and solar energy face new federal obstacles

From Alejandro LazoCalmness

This story was originally published by CalmattersS Register about their ballots.

California’s desire to manage its electrical network entirely of wind, solar energy and other pure energy sources has just become more difficult after President Donald Trump signed Metrest New budget lawS

Changes in federal tax incentives can affect the feasibility of new solar and wind projects, as the state relies on them to provide more electricity for Californians. State law requires 100% of electricity To be powered by renewable sources without carbon until 2045, at the same time moved to electrification of cars and trucks.

The incentives, supported by former President Joe Biden, were canceled, reducing the industry time to receive tax loans. The developers of wind and solar projects are now facing a new, long -term term for obtaining tax loans -most expire at the end of 2027, instead of not early 2032.

In addition, the new federal rules support companies to have access to tax loans if they rely on major components from China or other “foreign concerns for concern”. This restriction could hit the solar and wind industry in California, especially strong, experts said.

Changes to tax credits are evaluated to save the Federal Government approximately $ 499 billion from 2025–2034S

“For too long, the federal government has forced US taxpayers to subsidize expensive and unreliable energy sources such as wind and solar energy,” Trump Trump Trump Trump wrote in an enforcement order last week. “The spread of these projects displaces affordable, reliable, sending internal energy sources, compromises our electrical network and denies the beauty of the natural landscape of our nation.”

Projects can still be built without tax loans. But this puts more financial burden on their investors. In California, 11 solar projects and a land wind project are now faced with potential delays or cancellation, according to an analysis of Federal data from the public policy of Atlas provided to Calmatters. The projects are distributed in the Central Valley, the Internal Empire and Northern California.

Sean Galaher, Senior Vice President of the Sun Energy Industry Association, said in a statement that the industry is still “appreciating what the federal tax bill for them means.” He warned that changes could threaten up to 35,700 solar jobs and 25 solar energy production facilities in California – including existing positions and factories, as well as future projects that can now be implemented.

“The reality is that with or without pure loans for energy tax, the demand for energy in California is growing with a historical rate, and solar energy and storage are the fastest and most affordable way to satisfy this demand,” Galagher said.

California in recent years is a fast tracking massive floating offshore windpowns 20 miles from the shores of Humboldt County and Moro Bay. Federal changes add some uncertainty that can cool the investment. But experts say this is not the death of death for the industry, as projects have not been set up to seek federal permits or to generate electricity for at least a few years.

“The offshore wind is what we would call a long -term project. It takes years and years to develop,” said Assembly Down Addis, a former chairman of the wind selection committee in the Assembly. “The solar energy is a little shorter than the time frame … But it is also its incredibly unstable behavior when it comes to market stability, it will generally affect these projects in a negative way.”

Experts say that in the long run, federal changes can increase energy costs.

“Saving tax credit is usually transmitted to the payroll paid by less negotiable costs. In the long run, the cancellation of tax loans will lead to higher future electricity rates for customers,” the California Energy Committee told Calmatters.

Increasing utility bills are now a major political headache for government leaders and a challenge for the defenses of clean energy who want the state to lead the way in making electricity Clean, more expensive and more reliableS

“The whole meaning of California’s climate policy is not only to reduce the carbon footprint in California – because we are less than 1% of global emissions – but to give an example and show that this can be done,” Berkli economist Severin Borendstein told Calmatters. “There will be fewer other countries that follow our example, because it will be more expensive.”

The new solar and wind obstacles come as they scathing to respond to the increasing demand for electricity across the country, including from Data centers hungry for energy Nourishing the rise of artificial intelligence.

California Energy Commissioner Nancy Skinner in an interview with Calmatters said the federal law was a national “murderer of work” and was speaking. “The economy of renewable energy production speaks for itself …. The cost of solar energy production is now competitive with natural gas,” she said.

“We will not step back from our commitments and goals,” she added. “Our commitment-no-side whether it is for zero-emissions vehicles or for the production of renewable energy means-about Air -cleaning Whatever you turn to the climate crisis … No one wants to live in naughty communities where the air you breathe hurts. “

Sun and wind projects Main stages of renewable energy In recent years. Last week, governor Gavin Newo said that nine every 10 days had been powered by non -fossil fuels for at least part of the day in 2025.

“The economy of renewable energy production speaks for itself …. The cost of solar energy production is now competitive with natural gas.”

California Commissioner for Energy Nancy Skinner

The state network works on a combination of renewable sources – sunny, wind, geothermal, nuclear, biomass and water -electricity New data compiled by the California Energy CommitteeS

“The fourth largest economy in the world is working on cleaner energy than ever,” Newsom says in a statement. “Trump and Republicans can try anything they want to bring us back in the days of dirty coal, but the future is cheap, abundant clean energy.”

But industry employees say the state is not doing enough. The state is said to have too many obstacles to building winds and solar energy projects and should offer more funding.

“For years, too many leaders in California have been withdrawing from the true clean energy guide – we hope that the tax account serves to awaken, that their guide for clean energy is more important than ever,” Galagher said.

Trump and Congress did not shorten the deadlines for tax credit for nuclear power plants, hydroelectric equipment, battery storage and geothermal plants. The Congress also cut off a provision that would add a new excise duty to wind and solar energy.

There is still a possible way for wind and solar energy to request tax loans if construction starts within a year or they come online by the end of 2027. Senators have added this provision to mitigate the impact. In theory, these projects can be completed and connected to the network as early as 2031 and still qualified, but it depends on how the Ministry of Finance determines what it means to “start construction,” says Kevin Book, Energy Analyzer Based in Washington, Columbia District

“In the short term, this can actually increase or displace earlier costs for these types of clean energy projects and all other equal,” says David Victor, Professor of Public Policy at UC San Diego. “California is in a pretty good position to benefit from this acceleration.”

But Victor warned that long -term costs could become a “political nightmare”.

“The long -term incentive, obviously, is to try to slow down investment in solar and wind and electric vehicles,” Victor said.

Borniestein took a closer look at the impact on costs: High electricity prices in California are not mainly for energy production – they are driven by fire costsIncluding past payments and upgrades to prevent future fires. Other drivers include subsidies for low -income customers and displacement of Solar costs on the roof, he said.

Some legislators advocate for the state budget to cover more of these costs, but Borogenstein said it was easier to charge customers through their electricity bills.

Alex Jackson, who runs the American Clean Power California industrial group, said the state should use money from its restriction and trade program to reduce bills. Cap and trade is a market system that charges California companies for greenhouse gas emissions they produce. Jackson said these funds can help pay for the grate superstructures so that tax plans are not required.

He said that the state could also reduce clean energy costs by speeding up the resolution, easeing the environmental rules for upgrading existing projects and reducing the cost of turning agricultural land into solar holdings. He also called for the expansion of regional electricity markets to help California trade energy more efficiently – a controversial To be discussed in the legislature this year.

“We have really invested aggressively in clean energy and we need to increase this investment and we need to make it easier and faster in order to unfold clean energy.”

State Senator Scott Wiener

The state legislative body has been discussed for years, releasing some clean energy drafts from the State Environment Act, the California Environment Act, which is often accused of delaying. State Senator Scott Wiener of San Francisco stands for such changes.

“California has always been a leader and we have to strengthen it significantly,” Wiener told Calmatters. “We have really invested aggressively in clean energy and we need to increase this investment and we need to make it easier and faster in order to unfold clean energy.”

In addition to wind and solar loans, the budget signed by Trump also completes tax loans to buy electric cars, roof solar panels, home batteries, heat pumps, insulation, energy -efficient windows and other upgrades. The solar tax loans on the roof end this year. Federal tax loans for hydrogen production end after 2027 – a blow to California, which is positioned as a national hydrogen center. These changes are evaluated to save around $ 543 billion from 2025–2034S

The State Energy Committee said the elimination of EV loans starting on September 30 will mean “lower acceptance of electric vehicles” and “potential short-term jump in ZEV sales” before that date. Solar roof projects and heat pump sales are also likely to decline, the agency said.

This article was Originally Published on CalMatters and was reissued under Creative Commons Attribution-Noncommercial-Noderivatives License.