Trump’s energy policy could cost US 540 GW of renewables, says NRDC

A new report from the Natural Resources Defense Council (NRDC) says federal energy policy changes could cut the amount of new wind, solar, and battery storage power the country builds over the next decade by 390 to 540 gigawatts. The report points to the rollback of clean-energy tax credits from the Inflation Reduction Act, new tariffs, and the cancellation of offshore wind leases as the main causes. NRDC says this lost capacity mostly isn't being replaced by other power sources — at most 9 gigawatts of new natural gas capacity gets built instead, partly because gas turbines are in short supply and new renewables are often cheaper to build anyway.

The practical effect, according to NRDC, is higher electricity bills. With less new renewable power coming online, utilities lean more on older, more expensive fossil-fuel plants. NRDC projects the power sector will spend $5 billion to $15 billion more on fossil fuels while losing out on $45 billion in tax incentives. It estimates this could push average household electricity rates up by 4.2% to 5.5% by 2035, compared with earlier projections made before these policy changes.

For homeowners, this is a reminder that broader electricity costs are shaped by national energy and tax policy, not just local utility decisions. If these projections hold, households in many states could see somewhat higher electric rates over the next decade than previously expected, separate from anything happening with home efficiency programs or appliance choices.