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In a significant shift for U.S. energy policy, President Donald Trump announced on Wednesday that his administration would cease approving new solar and wind power projects across the nation. This declaration comes amidst growing electricity demand in several parts of the U.S. that is currently outpacing supply.
The President articulated his stance via a post on Truth Social, stating, “We will not approve wind or farmer destroying Solar.” He further added, “The days of stupidity are over in the USA!!!” Trump has previously voiced concerns that solar installations consume excessive land.
Federal Permitting Centralized, Industry Fears Intensify
This latest announcement follows a recent tightening of federal permitting processes for renewable energy projects. Control over the permitting pipeline has been centralized within the office of Interior Secretary Doug Burgum. Renewable energy companies have expressed considerable apprehension that projects, which were once routinely approved, may now face rejection. The President’s explicit comments on Wednesday are expected to heighten these industry concerns.
Debate Over Electricity Prices and Supply
President Trump has attributed rising electricity prices in the U.S. to renewable energy sources. Concurrently, the nation’s largest electricity grid, PJM Interconnection, has indeed seen an increase in power capacity prices, with a 22% jump compared to last year in a recent auction. PJM, which serves 13 states across the Mid-Atlantic, parts of the Midwest, and the South, is experiencing surging demand from data centers and other industries, while the supply tightens due to the retirement of traditional power sources like coal plants.
However, data from Lawrence Berkeley National Laboratory suggests a different perspective. According to their research, solar and battery storage solutions are the fastest means to alleviate the current supply-demand imbalance, representing the vast majority of projects queued to connect to the national grid.
Broader Attacks on Renewable Energy Development
This new directive is part of a broader policy offensive by the Trump administration against renewable energy. His proposed “One Big Beautiful Bill Act” aims to terminate critical investment and production tax credits for wind and solar by the close of 2027. These incentives have been instrumental in fueling the expansion of renewable energy capacity throughout the U.S.
Furthermore, renewable energy companies contend that the administration’s imposition of steel and copper tariffs has driven up the cost of both solar and wind projects. Adding to these regulatory pressures, the U.S. Department of Agriculture recently announced on Tuesday its decision to end support for solar installations on farmland.