Senate version of Trump's "big, beautiful bill" would pummel renewable energy industry with new tax

The latest version of President Trump’s sweeping second-term legislative agenda poses a serious threat to the future of clean energy in the United States. The Senate version of the so-called “Big, Beautiful Bill” introduces a new excise tax on wind and solar projects, accelerates the end of renewable energy tax credits, and imposes strict foreign sourcing restrictions—changes that could increase energy prices, halt clean energy development, and eliminate millions of jobs.

What’s in the Bill That Impacts Solar and Renewables?

1. New Excise Tax on Clean Energy Projects

Buried on page 558 of the Senate bill is a proposed excise tax on all wind and solar projects that begin construction after June 16, 2025, or are placed into service after 2027.

• This tax is expected to cost clean energy developers $4–$7 billion by 2036, according to the American Clean Power Association.

• Consumers may see electricity prices increase by 8–10% as a result.

2. Foreign-Sourced Material Restrictions

Projects would be taxed if they source components from “prohibited foreign countries” like China. While the policy aims to promote U.S. manufacturing, clean energy experts warn that avoiding Chinese components is currently cost-prohibitive, particularly for solar developers.

This could drive energy-hungry companies like AI and data center operators to source power overseas, defeating the bill’s intended goals.

3. Accelerated Sunset of Renewable Tax Credits

The Senate bill would also eliminate or phase out tax credits for solar, wind, electric vehicles, and energy-efficient technologies sooner than previously planned:

• Inflation Reduction Act tax credits, originally slated to run through 2032, would now end in 2027 or 2028, depending on the version passed.

• The Senate version ends credits earlier than the House version—one more blow to long-term project viability.

A study from Rhodium Group estimates that this could result in a 72% drop in new solar and wind installations over the next decade.

Reactions Across the Spectrum

Elon Musk broke his silence, calling the Senate bill:

“Utterly insane and destructive... A massive strategic error... It will destroy millions of jobs and leave America extremely vulnerable.”

Even conservative energy analysts and pro-business groups were taken aback:

• Alex Epstein, a known critic of green subsidies, said: “I just learned about the excise tax and it’s definitely not something I would support.”

• The U.S. Chamber of Commerce called the tax “bad energy policy” and warned it would increase electricity prices during a time of rising demand.

And in a rare moment of unity:

• The North American Building Trades Union declared the bill could become “the biggest job-killing bill in the history of this country.”

• Their statement compares its impact to “1,000 canceled Keystone XL pipeline projects,” estimating 1.75 million jobs and $148 billion in annual wages and benefits lost.

What This Means for Solar Installers, Homeowners, and the Future of Clean Energy

If passed, this bill would mark a sharp reversal of the U.S.'s clean energy policy, with devastating consequences for:

• Homeowners seeking to install solar before the credit expires

• Installers and contractors who rely on incentives to drive business

• Local communities counting on clean energy jobs and grid resilience

The bill creates financial uncertainty, threatens supply chains, and shifts momentum back to fossil fuels—a move many experts view as economically and strategically shortsighted.

With a looming December 31, 2025 deadline for the 30% federal solar tax credit, now is the time for homeowners and businesses to act. The current political climate puts solar’s future on the line—and waiting may cost more than just money.