The Trump administration has canceled a nearly $5 billion loan guarantee that would have allowed for the installation of a wind transmission line to carry clean electricity to four different states in the Midwest.
What happened?
According to EnergySage, the cancellation comes as millions of Americans struggle with rising energy bills due to increased air conditioning use — linked to rising global temperatures — and the surge in data center growth.
The Grain Belt Express, which is an 800-mile transmission line that will supply renewable energy to Indiana, Illinois, and Missouri from Kansas wind farms, had its federal funding canceled last month. While private funding will ensure the project is completed, it's still a huge blow to the clean energy transition.
Although substantial progress is being made across the country on renewable energy projects, demand for electricity is also soaring at the same time. EnergySage reported that data centers are expected to double or triple energy use by 2028, while other electric upgrades are putting more pressure on the grid.
Meanwhile, rooftop solar, which can help customers save substantially on energy bills, is losing federal support. However, companies such as EnergySage offer free tools that provide solar installation estimates, making it easy to access potential savings.
Still, as utilities add more transmission lines to keep pace with demand, the costs get passed down to consumers much of the time. That's why the Grain Belt Express is so important, as it would help save customers over $50 billion in energy costs over 15 years. It was also expected to employ thousands of workers in permanent jobs across the Midwest.
"The project promised substantial economic benefits that would have rippled across multiple states and industries," EnergySage explained.
While the loan cancellation doesn't mean the project is being terminated, it does make it more expensive, since private funding will require higher interest rates. It may also make investors uneasy if they believe large-scale infrastructure and energy projects aren't being supported.
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Why is this concerning?
As EnergySage explained, customers may face higher electric bills to help utilities pay for upgrades, especially considering the Grain Belt Express will not have federal backing that would have made it cheaper.
Plus, the private funding is not a guarantee. Otto Lynch, CEO of Power Line Systems, a company that designs transmission infrastructure, said he remains optimistic that the project will still move forward.
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$10K or more 🤑 But there's no telling when it will come online, and in the meantime, customers are having to pay more for electricity, even as clean energy is abundant in the Midwest. Without a transmission line to carry that energy, customers won't be able to reap the benefits.
How can customers save on energy bills?
Even with rising energy costs, customers can still consider investing in rooftop solar to offset the increases from data center growth and higher energy use in the summer.
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If you're shopping with EnergySage, its free services can help you save up to $10,000 on installation costs. You can also take advantage of a mapping tool that shows you the average cost of a home solar system and any incentives you're eligible for on a state-by-state basis.
And if you pair a solar setup with other energy-efficient appliances like heat pumps, you stand to save even more on monthly energy costs. Through EnergySage, you can get free quotes and find a local heat pump installer, making it easy to upgrade your home all in one place.
However, if you want to take advantage of solar and heat pump tax credits, ensure that your installations are completed by the end of this year, as the credits will expire on December 31.
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