Newsweek reports on the potential impacts of H.R. 1 in driving up energy bills and stalling advanced energy deployment in states across the country. United's Harry Godfrey warns that the shrinking U.S. market for advanced energy technologies may dissuade domestic manufacturers from investing in clean energy projects, resulting in stunted job growth, reduced grid reliability, and increased costs for both individuals and developers.
The budget reconciliation bill signed into law by President Donald Trump on July 4 repeals many renewable energy incentives introduced by the Biden administration, which analysts warn could limit energy production and increase costs for Americans nationwide.
According to the climate policy think tank Energy Innovation, the energy provisions of the "One Big Beautiful Bill Act" will raise wholesale electricity prices by 25 percent by 2030 and by 74 percent by 2035, while increasing the rates consumers pay by between 9 and 18 percent over the decade.
In response to these fears, the White House told Newsweek that the bill will "turbocharge oil production," lowering overall energy costs and providing "further relief to American families and businesses."
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The bill, signed into law after months of interparty debates and revisions, amends several clean energy grant programs enacted during the presidency of Joe Biden and via his flagship 2022 Inflation Reduction Act. The budget pulls funding for clean energy programs and phases out various renewable tax credits, primarily by shortening the qualification window for wind and solar projects.
According to Energy Innovation, the downstream impacts of the bill on renewable energy projects—many of which will be abandoned as a result—will "significantly hamper the development of domestic electricity generation capacity," resulting in a 340 gigawatt decrease in generation capacity by 2035 despite the simultaneous efforts to increase nonrenewable energy production.
Their research found that the bill will raise energy costs for all Americans, but Dan O'Brien, a senior analyst at the think tank, told Newsweek recently that these impacts would "vary by state." This, he said, depends on each region's geography and potential for solar and wind developments, as well as states' willingness to support investments in such technologies without federal assistance.
Harry Godfrey, managing director and head of federal engagement at Advanced Energy United, previously told Newsweek: "As this bill has been debated over the past 6 months, we've seen pullbacks, particularly from domestic advanced energy manufacturing companies.
"Those pullbacks speak to the upstream impact of this bill. Manufacturers, making multi-decadal, multi-billion dollar investments in new factories and assembly lines, are looking out beyond the horizon and seeing a shrinking U.S. market for technologies like solar inverters, wind turbines, batteries (particularly for EVs). So it's little surprise they're getting cold feet. They're the canaries in the coal mine."
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