Provisions slashing energy subsidies are expected to have significant ramifications on not only the nation’s greenhouse gas emissions but also energy prices.
A recent analysis from BloombergNEF said that a repeal of the green tax credits would result in 17 percent less renewable construction. It said that the cut, combined with growing electricity demand, is “a recipe for spiking power prices.”
Ethan Zindler, policies and countries analyst with BloombergNEF, said that for analysis purposes, the changes made in the House bill are akin to a full repeal.
“The tax code at the moment helps to reduce the cost of electricity for consumers from renewables, which today account for the vast majority of what gets added to the grid,” he said.
“If you remove those supports, then developers will simply seek to charge more, and in a number of cases, utilities will be forced to pay more, and those costs will flow through to consumers.”
Several analyses estimate that electric bills could rise noticeably as a result.
A Rhodium Group estimate has found that keeping the tax credits in place could save consumers 2 to 4 percent on their electric bills in 2030 and 2 to 5 percent in 2035. Aurora Energy Research has found that removing the tax credits will increase electric bills by an average of 10 percent — or $142 per year — by 2040.
Read more about the bill’s overall impacts from colleagues and me at TheHill.com.
Welcome to The Hill’s Energy & Environment newsletter, I’m Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.
Republicans in the Louisiana House stifled a proposal on Wednesday that would have banned the addition of fluoride in public water systems — rejecting a burgeoning movement backed by Health and Human Services Secretary Robert F. Kennedy Jr.
Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. said he will ban government scientists from publishing in leading medical journals and proposed creating an “in-house” publication by the department.
President Trump on Wednesday took a slew of clemency actions, including pardoning former Rep. Michael Grimm (R-N.Y.) and commuting the sentence of a former Chicago gang leader. Read more
President Trump on Wednesday bristled when asked about a new Wall Street term based on his tendency to reverse his tariff threats, defending his approach and dismissing the question as “nasty.” Read more
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