Solar and wind try to navigate Trump’s obstacle course for tax credits

Large-scale solar and wind projects across the country are racing to lock in federal tax credits before a July 4, 2026 deadline, set by the tax law President Trump signed last year. Projects that "start construction" by then can still claim credits covering 30% or more of costs. Most big developers have already secured this status, known as "safe harbor," so the pipeline of new solar and wind is not expected to dry up right away. Battery storage projects were not affected by this deadline and keep their original tax-credit terms.

The catch is what comes next. Safe-harbored projects now have four years to actually get built and connected to the grid, or they lose the credits. That is harder than it sounds: permitting delays, a backed-up process for connecting to the grid, and a series of new Trump administration hurdles are already slowing tens of gigawatts of projects. These include a near-freeze on permits for projects on public land, paused Defense Department reviews for wind farms, and new rules restricting equipment or financing tied to China, with more restrictive guidance still to come. Smaller developers, with less flexibility to shift equipment between projects, may struggle most to hit the four-year deadline.

For homeowners, this doesn't directly affect existing home energy rebates or programs, but it matters for electricity costs. If projects get stuck and lose their tax credits, developers may pass higher costs on to power prices, at a time when many households are already dealing with rising electric bills.