Trump’s Rollback Of Green Policies Pushes IEA To Slash US Renewable Growth Forecast By 50%
This organization stated that its new outlook reflects several policy changes, including the earlier phase-out of federal tax credits.
The International Energy Agency has halved its U.S. renewable energy growth forecast, blaming policy changes enacted by the Trump administration.
This organization stated that its new outlook reflects several policy changes, including the earlier phase-out of federal tax credits, new import restrictions, the suspension of new offshore wind leasing, and restrictions on permitting onshore wind and solar projects on federal land.
“Major solar and wind manufacturers have reported large losses despite surging global installations. The financial sustainability of equipment manufacturers remains a major issue,” the IEA said.
U.S. President Donald Trump has repeatedly criticized wind and solar energy, alleging that they are wasteful in terms of land use and that federal incentives are being misused. The policy shift by the Trump administration threatened to reverse decades of growth in renewable energy generation. According to clean-energy think tank Ember, solar and wind combined generated more electricity in the U.S. than coal for the first time last year.
Retail sentiment on Stocktwits about solar firms Nextracker, Enphase, SolarEdge, and First Solar ranged between ‘bearish’ and ‘extremely bearish’ at the time of writing.
Rest Of World Remains Steadfast
Globally, the IEA also reduced its renewable energy growth forecast by 5% compared to last year’s report, primarily due to policy changes in the U.S. and China. However, the agency noted that China continues to account for nearly 60% of global renewable capacity growth and is on track to reach its recently announced 2035 wind and solar target five years ahead of schedule, extending its track record of early delivery.
The IEA report also stated that electricity generation from renewables is expected to increase by 60% to 16,200 terawatt-hours (TWh) in 2030. The Paris-based organization also predicts that renewables will surpass coal as early as the end of 2025, becoming the largest source of electricity generation globally.
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