(Financial Times Europe, Martha Muir, May 27, 2026)
The race to build new wind and solar plants in the United States has been accelerating strongly for over a year, with solar capacity under construction up 50 percent and wind capacity up 60 percent, driven by producers rushing to start work before the July 4 deadline to benefit from the tax incentives introduced by Biden’s Inflation Reduction Act, now canceled by the Trump administration.
Many projects risk being abandoned due to the lack of skilled labor, scarcity of transformers and equipment, delays in permits especially on federal lands, and financing difficulties, while banking partners are becoming more cautious in the face of regulatory uncertainty and rising labor costs.
The removal of incentives comes just as electricity demand is sharply increasing due to data centers, electric vehicles, and heat pumps, putting decarbonization goals at risk and leaving many small and medium developers without sufficient resources to “safe harbour” future projects, risking a sharp slowdown in the American energy transition.
Developers’ race against time
“According to Cleanview data, solar capacity under construction has increased by 50 percent since the beginning of last year, while wind projects have grown by 60 percent. The boom is driven by developers rushing to take advantage of tax credits before they expire.”
Financing and permit difficulties
“Even if a solar or wind plant is built on private property, it may require a permit if it crosses public lands to connect to electrical substations. Waiting times for permits are extending up to a year due to the Trump administration’s crackdown on renewable projects on federal lands.”
Impact on electricity demand
“According to ICF data, electricity demand is expected to grow by 25 percent from 2025 to 2030 and by 78 percent by 2050, driven by data centers, electric vehicles, and appliances such as heat pumps.”
Costs and labor shortage
“There aren’t enough electricians out there. Contractors know they have an uncertain future, so some of them are trying to charge more.”
Concerns for small developers
“Half of the development installed in the United States in recent years has been done by developers producing 50-100 megawatts per year. They don’t have the funds to safe harbour three or four years of projects.”
(Excerpt from the newsletter by Giuseppe Liturri)
