Researchers discovered that Americans could face higher electric bills if the Trump administration repeals certain energy policies.
The House of Representatives passed President Donald Trump's favored "One Big Beautiful Bill" in May. According to reports, clean energy incentives would be heavily impacted if the tax bill is approved by the Senate.
What are the impacts of repealing clean energy incentives?
Per Resources for the Future, the Inflation Reduction Act — which was passed in 2022 — has two "technology-neutral" tax credits. The Clean Electricity Production Credit pays a fixed amount for every unit of electricity generated. Meanwhile, the Clean Electricity Investment Tax Credit covers part of the capital cost for a qualifying generation or storage technology.
"As the new administration and Congress contemplate proposals for the budget reconciliation process, these and other tax credits in the Inflation Reduction Act are on the table for potential repeal," the authors wrote.
Research found that repealing the tax credits would increase the national average of electricity rates by about 5-7% in 2030. That means consumers would pay $75-100 more annually. People living in the upper plain states would be impacted the most financially.
Data also showed that repealing the tax credits would reduce tax expenditures, increase power sector carbon dioxide pollution, and reduce wind generation capacity.
Watch now: How bad is a gas stove for your home's indoor air quality?
Why are clean energy tax credits important?
IRA tax incentives have made environmentally-friendly options like electric vehicles and solar panels more affordable for customers, per CNN. President Trump's bill would phase out the clean energy tax credits and add new restrictions for energy companies. Research found that the bill could result in the loss of more than 830,000 jobs down the road.
Dirty fuels are the largest contributor of heat-trapping pollution. According to experts, emissions need to reach net-zero by 2050 in order to avoid the devastating effects of changing global temperatures. Investing in clean energy is a sustainable alternative.
Some officials have issued warnings about eliminating the tax credits. Per NBC News, 13 House Republicans signed a letter urging Senate GOP leaders to reduce some of the clean energy cuts.
"While we were proud to have worked to ensure that the bill did not include a full repeal of the clean energy tax credits, we remain deeply concerned by several provisions," the Republicans said in the letter.
Do you think your energy bills are too high? Click your choice to see results and speak your mind. |
How solar helps with energy bills
One form of clean energy that helps save money and reduce planet-overheating pollution is solar. Solar panels are increasingly popular in the United States. In fact, more than 4.2 million homes in the U.S. had solar panels by February 2024, according to SolarInsure.
While the upfront costs of solar can be costly, there are other options available. Palmetto's LightReach program allows homeowners the chance to lease solar panels for no money down.
Leasing panels is a more affordable opportunity to enjoy the benefits of solar energy while also minimizing upfront costs. If leasing isn't the right option, EnergySage is a free resource that gives estimates on buying and installing panels.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.