Trump has expressed strong opposition to certain renewable energy technologies, particularly wind power, and has pledged to dismantle regulations that encourage the transition to renewables. With Republican majorities in both the House and Senate, the party may push to eliminate tax incentives and other benefits for clean energy initiatives.
Following Trump’s election victory, renewable energy stocks experienced a decline, and utility company Duke Energy indicated it might reassess its changes away from coal. Meanwhile, Chinese solar manufacturer Trina Solar announced plans to sell its Texas facility but stated the decision was unrelated to Trump’s win.
Renewable energy stocks stumble post-Trump’s election as industry leaders reevaluate strategies
Despite these developments, experts have suggested the renewable energy sector is unlikely to lose its momentum, which had accelerated under the Biden administration. David Brown, head of energy transition at Wood Mackenzie, noted that while the new administration might move federal policies away from net-zero goals, the broader momentum for low-carbon energy remains strong.
Brown highlighted the extensive pipeline of renewable energy projects already in progress, emphasizing offshore wind projects with clear permitting for the next decade. He also pointed to tax credits introduced in 2022 through the Democrats’ climate legislation, which have catalyzed substantial private investments in the sector.
Even with potential policy rollbacks, Brown argued that wind and solar remain economically viable, ensuring continued growth for zero-carbon electricity sources. House Speaker Mike Johnson’s office proposed repealing “Green New Deal tax credits” in a policy plan for Trump’s first 100 days, which could hinder renewable energy expansion but would not halt it entirely.
Derrick Flakoll of BloombergNEF estimated a 17% reduction in the combined growth of wind, solar, and battery storage if tax credits for new projects are rescinded after 2026. Nonetheless, Meredith Annex, BloombergNEF’s clean power lead, projected annual installation rates would return to 2024 levels before the decade’s end.
