The “One Big Beautiful Bill Act” (OBBBA), recently passed in the U.S. House of Representatives, has stirred significant concern across the renewable energy sector. While its name suggests optimism, climate and energy experts call it a direct threat to the clean energy transition, reversing years of federal progress on decarbonization, grid modernization, and domestic energy innovation.
Rather than advancing renewable energy, the OBBB essentially dismantles the federal tax credit structure that has fueled clean energy growth under the Inflation Reduction Act (IRA). It proposes the early repeal of several key credits, including:
- Sections 45Y and 48E, which offered performance-based and investment-based credits for clean electricity,
- Section 45X, a manufacturing credit designed to incentivize domestic production of solar panels, wind components, batteries, and inverters,
- Tax credits for residential clean energy, electric vehicles, energy storage, and efficient home improvements.
The bill sets a tight 60-day window after enactment for projects to “begin construction” to remain eligible. Additionally, from 2026 onward, any project with supply chain ties to “foreign entities of concern”—a designation targeting Chinese involvement—would be disqualified from credits altogether.
Economic and Market Implications
According to Energy Innovation’s analysis, the bill could slash clean electricity capacity additions by 72%, cutting annual deployment from roughly 100 GW to just 33 GW. This dramatic pullback would raise electricity costs, stifle domestic manufacturing, and significantly delay the country’s emissions reduction goals.
As the Center for American Progress highlighted, the rollback could also jeopardize more than 270,000 jobs created or supported by clean energy investments under the IRA, particularly in red and rural states that have attracted a surge of renewable manufacturing projects since 2022.
In Florida, for example, where utilities are working to expand solar and EV infrastructure, local experts warn that the bill will increase long-term costs for consumers, shrink investment, and deepen the state’s vulnerability to climate-related risks.
Industry and Expert Reactions
Clean energy advocates have described the legislation as a “clean energy nightmare scenario.” The Solar Energy Industries Association, American Clean Power Association, and National Association of Manufacturers have all opposed the bill, citing its economic and geopolitical consequences. The rollback of tax credits—especially for domestic manufacturing—could reduce U.S. competitiveness against China in clean energy supply chains, despite the bill’s intention to address those dependencies.
Moreover, experts stress that the bill doesn’t propose a serious alternative platform for a transition table, secure, or sustainable energy supply, creating uncertainty for developers, utilities, and investors alike.
Despite its populist branding, the One Big Beautiful Bill Act is not a pro-energy or pro-consumer policy. However, a sweeping reversal of clean energy incentives threatens to derail the country’s climate progress and undercut domestic economic gains. As it moves to the Senate, the future of U.S. renewable energy policy may hinge on whether legislators choose to preserve or dismantle the framework that’s driving the energy transition.
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