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Good morning and happy Friday,
This week, the announcement of a deal lowering sky-high tariffs between the U.S. and China for 90 days sent the stock market soaring – but will it provide relief for renewables? Most observers are focused on the GOP’s proposed budget – much more on that below.
In other news, NERC says “the middle swath of North America is at risk of power shortfalls this summer;” PJM and ERCOT have issued their own warnings that extreme heat could push their systems to the brink, just as Texas lawmakers consider bills that would thwart development of much-needed clean energy resources.
Speaking of which, the EIA’s latest short-term outlook says demand for energy is driving additions of new solar and storage, and March marked solar’s 19th consecutive month as the largest source of new U.S. electric capacity.
Last month we told you about a Clean Investment Monitor report on the U.S. supply chain; this month, there’s a new report on clean energy investment, which has dipped in 2025 but is still in positive territory.
And, last but not least, spread the word – SEIA has set up a simple form to make it easy for anyone to urge the Senate to protect clean energy tax credits. Let’s make some noise.
Read on for more.
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Math vs. Megawatts
The wait is over. After weeks of speculation, House Republicans have finally revealed how they plan to reshape clean energy tax policy. The House Ways and Means Committee dropped a preview of their tax proposal on Monday—and after an all-nighter, released the full bill Wednesday morning. Many say it guts the IRA’s core tax credits and deals a major blow to clean energy—though Bloomberg calls it “mostly a win for US solar manufacturers and developers.” Here’s what developers need to know:
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The main clean energy tax credits stick around—for now. The Investment Tax Credit (ITC) and Production Tax Credit (PTC) would stay fully in place through 2028, then gradually shrink through 2031.
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Projects would need to be finished, not just started, to qualify. Under the new rules, developers would only get tax credits once a project is up and running—not just when construction begins.
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Transferability gets sunsetted. One of the IRA’s most flexible features—being able to sell tax credits to others—would disappear two years after the bill becomes law.
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Bonus credits survive. Add-ons for building in low-income areas or former energy communities would remain intact.
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Support for U.S. clean energy manufacturing continues—but not forever. The manufacturing tax credit would also stick around until 2029, with a similar phase-out starting in 2030.
- Foreign ties come with strings attached. Projects that rely on materials or technology from certain countries (deemed “Foreign Entities of Concern”) could face new restrictions.
⚡️ The Takeaway
What’s next? The Ways and Means Committee’s sledgehammer approach to the IRA could have profound implications for clean energy development—but the politics are far from settled. While critics decry the bill as a “green raw deal,” others point out that the proposal still preserves some key credits, at least for now. As Dispatch readers know, the irony is hard to ignore: the vast majority of IRA funding has flowed to red districts. That’s why the backlash is already brewing within the GOP. Twelve House Republicans have proposed “three thoughtful changes,” and several Senate Republicans are pushing back, warning the bill could backfire by raising electricity prices and triggering a natural gas price shock. One Democratic amendment proposes delaying implementation until the Energy Information Administration studies the bill’s impacts—underscoring just how much is still in play. With even some Republican IRA defenders “not thrilled,” the next few weeks could determine whether this proposal is a political message—or a serious market disruptor.
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State of Play
A new report from the Siting Solutions Project at Clean Tomorrow offers the clearest snapshot yet of how state policy is shaping renewable energy siting across the U.S. While Dispatch readers won’t be surprised to learn there’s no one-size-fits-all approach, this is the most detailed and organized look at siting policy frameworks we’ve seen.
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It identifies 15 distinct policy mechanisms and groups them into five broad siting policy types—offering a clear view of how each state stacks up.
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It underscores the cost of inaction: one-third of wind and solar projects have been canceled over the past five years, totaling 36 GW in lost capacity and billions in foregone investment.
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It notes that state legislatures are stepping up, with at least 31 states introducing major reforms in 2025 alone. The best of these support grid reliability, affordability, and community engagement.
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Michigan’s new “compliance-based authority” model stands out—offering both guidance and funding for local governments to align with state siting standards. The state pays localities more to permit projects themselves, creating a promising national model.
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The report also flags a key gap: some states have strong laws that are rarely used, highlighting the need for better implementation and enforcement.
⚡️ The Takeaway
We’re moving too slowly. As the report shows, the real action is at the state level. While many legislatures are introducing reforms, inconsistent permitting, local opposition, and lack of enforcement are still delaying or canceling projects—costing the country 36 GW in lost capacity over the last five years alone. The good news? There are proven models. From Michigan’s new compliance-based local authority to states using “guardrails” that limit unreasonable local restrictions, the tools exist. But passing laws isn’t enough—effective implementation and political resolve are just as important.
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A Bright Idea
The vast network that is America’s transmission grid includes more than 500,000 miles of high-voltage lines. Maintaining these lines is as important as it is challenging – they’re exposed to harsh conditions, and vulnerable to all kinds of disruptions, from high winds and ice to equipment failure.
One way to know if something’s amiss with a transmission tower or line is to install sensors – “but it’s expensive and time-consuming to install, connect, and maintain those devices along power lines crossing remote plains, forests, and mountains.”
An Israeli company called Prisma Photonics thinks it has a better solution for identifying issues: pulses of light. These pulses can be sent from devices located at substations, and carried along existing fiber-optic cables, which many utilities install on transmission towers for telecommunication purposes as well as to protect the lines from lightning strikes.
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The devices then “capture and analyze infinitesimal reflections cast back from points along the fiber,” making it possible to “detect shifts in temperature, pressure, strain on the cables, and other signals.”
Prisma has tested its technology extensively in Israel as well as in pilot projects with the New York Power Authority. Now it’s involved in a project with Great River Energy in Minnesota. A representative from GRE appreciates that the technology leverages existing infrastructure, and can potentially do many things at once – including performing dynamic line rating. Sounds like a dynamic solution to us.
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Building American power requires a powerful team. |
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