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The Trump administration’s “One Big Beautiful Bill Act” (OBBBA) was full of all kinds of crap, rubbish, and bile. In short, it was named for what it was not — but that’s enough to fool most people. One thing the OBBBA did was rapidly phase out federal wind and solar tax incentives. The “tax credit cliff” is coming up on July 4 (ironically). Utility-scale renewable energy projects don’t have to be completed by then, but construction has to have begun (and then they have to be done and placed into service by December 31, 2027).
There will be a race to finish projects at the end of 2027, but there’s growing pressure to commit to projects right now, ASAP, in order to not miss that July 4 deadline.
“Clean energy buyers who are waiting for perfect macroeconomic conditions to execute renewable power purchase agreements (PPAs) are running out of time,” Ryan Kennedy of pv magazine writes. “According to a new market insight report from LevelTen Energy, the impending July 4 ‘tax credit cliff’ is poised to rapidly spike PPA prices, forcing corporate procurement managers to move with extreme speed or face soaring project costs. […]
