The Changing Landscape of Solar Energy in the U.S.
The trajectory of the renewable energy sector in the United States has been anything but linear. A year ago, the outlook seemed bleak as Republican lawmakers targeted the Inflation Reduction Act’s tax incentives for wind and solar, pushing them towards early termination. Further complicating matters, the Interior Department introduced complex regulations to limit clean energy initiatives on federal lands, raising concerns about their impact on private land projects as well.
While these measures have notably slowed wind energy progress, solar power has managed to thrive. Influential voices from the MAGA movement have started to endorse it, legislative efforts are underway to expedite new project approvals, and the industry is expanding to meet the demands of data centers seeking swift and economical power solutions. In a surprising move, the Trump administration approved several significant solar projects that were initially obstructed by the new regulations.
Hannah Hess of the Rhodium Group’s Clean Investment Monitor team remarked, “I feel like there has been so much written that’s like, ‘The Trump administration is delaying this stuff. It’s holding it all up in red tape. Nothing’s getting built.’ When we look at the data, that’s not true.” In 2025, solar energy and battery storage, which stores surplus energy for non-sunny periods, represented 79% of new power generation. This trend is projected to continue with a 49% growth rate anticipated before the Inflation Reduction Act’s tax benefits lapse in 2027.
Despite a decline in solar support among conservatives due to cultural clashes, it could gain favor if linked to cost-reduction benefits. A recent poll by GoodPower and NORC at the University of Chicago indicates that 69% of Republicans approve of solar energy, provided it leads to lower electricity expenses. The Solar Energy Industries Association echoes this sentiment, highlighting solar power’s alignment with President Trump’s “energy dominance” strategy and its potential to reduce energy costs. A blog post from the association in February noted, “Conservative voters are drawing a clear distinction between rhetoric and practical solutions that lower costs.”
Solar power is gaining acceptance among conservative leaders. Katie Miller, previously with the Trump administration, has labeled solar as the “energy of the future.” In February, she tweeted, “Giant fusion reactor up there in the sky — we must rapidly expand solar to compete with China.” Energy Secretary Chris Wright, who had criticized solar, acknowledged its potential benefits, stating, “Is there a commercial role for solar power that can add to the grid affordable, reliable energy? Certainly there is.”
Data center developers are increasingly integrating solar with traditional energy sources like oil and gas. Jim DesJardins from the Renewable Energy Industries Association of New Mexico noted the rising demand, saying, “It’s scary, almost. Five years ago, we were talking about an increase in load from EVs and building electrification — we’re not talking about that anymore. It’s all data centers and how are you going to power them.” For the first time, the New Mexico Oil and Gas Association sponsored the renewable energy association’s annual conference.
The efficiency and speed of solar power installation are unmatched, particularly with the current U.S. gas turbine shortage causing protracted delays for new natural gas plants. Mike Hall, CEO of Anza Renewables, elaborated, “The backlog alone [for turbines] is five to nine years. Then you’ve got to permit it. Then you’ve got to be near a gas pipeline for fuel, and then you’ve got the climate and the carbon issues.” Sightline Climate’s study suggests that half of the data center projects face delays due to power constraints, prompting developers to reconsider their reliance on gas turbines.
Nonetheless, solar power faces hurdles. Mike Hall noted challenges from the Department of Interior’s rules affecting projects on federal lands, though private land developments remain less impacted. The primary issues are local permitting and utility interconnection, which continue to pose significant obstacles.
Congress took a noteworthy step by passing the SPEED ACT, a bipartisan bill aimed at simplifying the permitting process for energy projects by revising the National Environmental Policy Act (NEPA). This reform has generated enthusiasm across party lines and comes on the heels of contentious debates over the Trump administration’s halting of offshore wind projects. Democratic senators Martin Heinrich and Sheldon Whitehouse are working to reach an agreement to address these issues.
Rising oil prices due to the conflict in Iran could further heighten interest in solar power as a means to combat rising energy costs and pursue energy independence. Brad Townsend from the Center for Climate and Energy Solutions highlighted the increasing energy poverty in the U.S., referencing a study by RMI that reported one in three households struggling to pay utility bills. “I think folks in the administration are increasingly becoming aware of the fact that we can’t turn away renewable energy,” Townsend remarked.
DesJardins pointed out, “In terms of the geopolitical reasons to support solar, no one has fought a war over the sun. Not yet, anyways.”
Original Story at grist.org