Texas renewable energy production could be impacted by One Big Beautiful Bill Act
TEXAS — In Texas, we need all the power we can create to keep up with demand. But developing wind and solar projects could get more difficult for power generators across the country.
What You Need To Know
- In July, President Donald Trump signed the One Big Beautiful Bill Act, ending tax incentives for power generators investing in clean renewable energy
- Even with tax breaks disappearing, CPS Energy’s CEO Rudy Garza says they will continue investing in solar and battery storage because the community needs it, no matter the cost
- The electricity demand in the United States is expected to increase by 16% in the next five years
- In the short term, experts say the economy may see a boost as power generators push through projects before the tax credit ends, but customers won’t feel the economic effects until 2026 or 2027
There’s no shortage of sunlight in the Lone Star State — which is leading the nation in renewable energy production.
“If you look at all the growth that is happening in Texas, our energy needs are growing faster than ever — not just with population growth, but particularly with data centers,” Big Sun Solar CEO Robert Miggins said.
Miggins says the state’s power grid needs all energy sources working together to keep up with demand.
“We need as much energy as we can get in Texas,” Miggins said. “We need oil and gas. We need coal. We need nuclear. And we definitely need wind and solar. Now I think is not a great time to for us to find ways to reduce the amount of energy we can put on the grid.”
In July, President Donald Trump signed the One Big Beautiful Bill Act, ending tax incentives for power generators investing in clean renewable energy.
“We are going to see pretty significant rollbacks in new investments in wind and solar projects,” said Dr. Taylor Collins, an energy economics professor at the University of the Incarnate Word. “The good news is it really shouldn’t have too much influence on projects that are already in place. It shouldn’t roll back any currently existing infrastructure.”
Collins says that while this act could make an easier path for natural gas production, keeping up with increasing demands will become more difficult without a mix of energy sources.
“Basically, these wind and solar projects have until July 4, 2026, to start construction in order to remain eligible for the investment tax credits,” Collins said. “Which means for the next year or so, we really won’t see too much of a hit to the Texas economy.”
Even with tax breaks disappearing, CPS Energy’s CEO Rudy Garza says they will continue investing in solar and battery storage — because the community needs it, no matter the cost.
“When you decide to start taking, arbitrarily taking resources off the table, it doesn’t mean they’re going to go away,” said Garza. “It means customers are going to pay more for them.”
The electricity demand in the United States is expected to increase by 16% in the next five years. Miggins fears this legislation may push companies to build data centers outside of the U.S., which could be a security risk.
“There’s a lot of manufacturing that’s comes to Texas around renewable energy,” Miggins said. “I think a lot of these jobs are at risk.”
In the short term, Collins says the economy may see a boost as power generators push through projects before the tax credit ends, but customers won’t feel the economic effects until 2026 or 2027.
“A lot of projects that likely would have taken place might not occur anymore,” Collins said. “That’s a big loss in investment. A loss in investment comes with a loss of jobs that could potentially hit some of our GDP.”