How the Big Beautiful Bill impacts Clean Energy

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has sent shockwaves through the renewable energy sector. Here's a breakdown of its major impacts:

🔋 Key Changes to Renewable Energy Policy

• Accelerated Phase-Out of Tax Credits: Wind and solar projects must begin construction within 12 months of enactment and be placed in service by December 31, 2027 to qualify for investment and production tax credits.
  Other clean energy technologies (like nuclear, geothermal, hydrogen) retain longer timelines, phasing out after 2035.
  
• Restrictions on Foreign Entities: Projects involving entities from China, Russia, Iran, or North Korea face disqualification from tax credits due to new “foreign entity of concern” rules.
  This affects ownership, supply chains, and even licensing agreements.
  
• Repeal of IRA-Era Incentives: The bill rescinds unspent funding from the Inflation Reduction Act and Infrastructure Investment and Jobs Act.
  Credits for electric vehicles, clean fuels, and residential energy improvements are also being rolled back.
  

📉 Economic and Environmental Fallout

• Investment Losses: Princeton’s ZERO Lab estimates a $500 billion drop in clean energy investment by 2035.
  Over 280 GW of solar and wind capacity could be lost.
  
• Job Cuts: Up to 840,000 jobs in clean energy manufacturing and deployment may vanish.
  
• Higher Energy Costs: Household energy bills could rise 13% by 2035, with some states facing hundreds of millions in added costs annually.
  
• Climate Goals Undermined: U.S. emissions reductions could fall to just 3% by 2030, far below the previous 40% target.
  

⚡ Industry Response

• Utilities and developers are scrambling to reassess project timelines and supply chains to salvage eligibility.
• Some sectors, like nuclear and hydrogen, may benefit from extended support, but solar and wind are clearly in the crosshairs.