Rescinding federal funds impairs Nevada’s affordable energy future
(Photo: Mischa Keijser/Getty Images)
My family saves money every month due to the solar panels we purchased in 2021. We were able to invest in these panels thanks to the tax credits made available through federal legislation. Solar energy significantly reduces our monthly electricity bill, which is especially helpful during the hot summer months. During moderate or cold months, the excess energy that our solar panels produce gets credited to our account. Even with monthly financing payments for the panels, we are still saving money.
We know we could save even further by maximizing the efficiency of our home appliances, which are wearing out in our 25 year-old home. We worry that each Las Vegas summer might be our air-conditioner’s last. We hope to be able to replace it with a highly efficient heat pump. Unfortunately, the federally funded rebates that would make this possible for us are now in jeopardy, as are the tax credits we used to purchase solar panels.
The development of renewable energy infrastructure saves Nevada ratepayers money and spurs economic growth in our state. Once installed, this infrastructure utilizes free energy from sunlight and wind. Along with battery storage, harnessing renewables is now generally cheaper than traditional fossil fuels. Renewable energy costs have dropped significantly over the last decade, a trend that is expected to continue. Recent federal legislation has created a renewable energy boom that is benefiting families and local economies. Repealing or unraveling this legislation risks increasing the cost of energy for Nevadans.
Rep. Mark Amodei knows these credits and incentives will save Nevadans money. Before the election, as Donald Trump was campaigning on repealing the laws that created them, Amodei, along with 17 Republican legislators, wrote a letter to Speaker Mike Johnson in support of the tax credits. On March 9, more Republicans joined in an additional letter to the Chairman of the Ways and Means Committee advocating for “prioritizing energy affordability.” They stated that many companies have already started projects with investments they made while assuming the credits would remain in place and that eliminating them could lead to a “worst-case scenario” in which billions of dollars have already been spent for financial benefits that may no longer exist. They also noted that a repeal of energy credits with direct passthrough benefit to ratepayers “would increase utility bills the very next day.”
Voters elected President Trump to make their lives more affordable, yet his executive order, “Unleashing American Energy,” froze funding aimed at decreasing energy costs. These include funds appropriated by the popular bipartisan infrastructure law, which has become significant to local economies throughout Nevada and the U.S. Although recent court cases have temporarily freed some of the funding, much remains inaccessible or uncertain, putting at risk infrastructure investments and jeopardizing tens of thousands of jobs. Although the popular tax credits for energy efficiency upgrades, electricity bills, and clean vehicles remain, it is unclear whether President Trump intends to repeal them as part of his pledge to rescind any “unspent” funds from the legislation. An independent analysis has predicted that if these incentives are eliminated, consumers could see monthly household energy bills rise by an average of 10%.
My family would like to continue to make efficiency upgrades to our home, but we won’t until we know whether the rebates and incentives will remain. Uncertainty over the future of these funds disrupts financial planning not only for my family but also for investors, property owners, tenants, and developers, causing ripple effects throughout local economies. That uncertainty is heightened with concern about tariffs on steel and other commodities needed for energy development from all sources, including fossil fuels. Energy costs are a big part of the average family budget and account for almost 7% of our nation’s GDP. We need as much affordability, certainty, and predictability in this sector as possible, and renewable energy development can help us achieve that.
President Trump is critical of renewable energy investment. But many Americans across the political spectrum see these investments as money-saving measures for their families and economic boosts to their local economies, rather than as environmental programs. Over 41,000 Nevada families have benefitted from over $151 million in tax credits to lower the costs of clean energy and energy efficiency upgrades. The loans and grants provided by federal legislation have attracted billions of dollars in private investment into Nevada’s clean energy sector, including Tesla’s Gigafactory, Unimacts’s solar manufacturing facility, the Reid Gardner Battery Energy Storage System, and Redwood Materials lithium battery recycling.
My family is grateful to Rep. Amodei for supporting these tax credits. We hope he will join with the rest of Nevada’s federal delegation in supporting the legislation that has provided rebates, incentives, infrastructure loans, and clean energy funds for Nevada. The economic health of our state depends on an affordable energy future, and this legislation can get us there.