Solar industry sounds alarm on federal permitting delays, warning of $120 billion consumer cost

A solar industry trade group is warning that federal permitting delays could raise electricity costs for households and businesses over the next several years. The group says more than 450 planned clean energy projects are stuck in review, caught up in a Department of Interior policy from the past year that requires top-level political sign-off for solar and storage projects built on federal land or needing a federal right-of-way. Roughly 30% of the solar project pipeline and more than a quarter of planned battery storage projects are affected.

The group cites outside analysis estimating the delays could add $81.2 billion to residential electric bills over seven years, plus another $40 billion in costs for commercial and industrial users. It also puts $121 billion in private investment at risk, which could mean fewer construction jobs and less tax revenue in areas where these projects get built, often rural communities. The concern is timing: demand for electricity is rising fast, driven partly by data centers and AI infrastructure, and solar and storage projects can normally come online quickly compared to other power sources.

A federal judge in Massachusetts already paused the Interior policy in April 2026, but that pause is temporary while the lawsuit continues. A longer-term fix, the SPEED Act, passed the House in December 2025 and would set stricter timelines for environmental reviews, but it still needs Senate approval and faces opposition from environmental groups who say it would weaken protections. For homeowners, the practical stake is future electric bills, which could be affected depending on how this plays out in Congress and the courts.