The Trump Administration has made it clear that it prefers fossil fuels and nuclear power over renewable energy sources, with a particular focus on residential solar. This stance has led to significant funding cuts and cancellations of clean energy projects, causing uncertainty and concern for the industry.
- As of May 7, the Trump administration has canceled $23.3 billion in clean energy grants.
- The administration has also pulled funding for electric vehicles and battery-making facilities.
- Climate Program Portal states that the Trump administration has attempted to cancel a total of 35 clean energy projects since Trump took office for the second time.
A new analysis by the research group E2 has found that 35 clean energy projects have been closed, canceled, or downsized since Trump took office. This number is higher than the combined totals for 2023 and 2024. The analysis highlights the significant impact of the Trump administration’s policies on the clean energy sector.
The Solar for All Program: A Targeted Attack
The Trump administration has also targeted the Solar for All program, which provided $7 billion in funding to support the development of solar energy in low-income households. The program was established as part of legislation passed by Vermont Democrat Bernie Sanders. The Solar for All program was designed to benefit 60 recipients, including Groundswell, a nonprofit organization that works in eight Southern states. Groundswell received $156 million in grant funding and has already broken ground on 24 megawatts of solar projects worth over $20 million.
“…this program covers every single state and U.S. territories, more than 60% of the awards went to state energy offices,” Groundswell CEO Michelle Moore told CBS News.
The Southern Environmental Law Center has stated that it will take the administration to court, arguing that families in the South pay the highest energy bills in the country and that the Solar for All program is essential for providing affordable energy to these communities.
The Impact on the Stock Market
The Trump administration’s policies have also had a significant impact on the stock market, with a wide range of solar companies taking a hit. Solar inverter company Enphase Energy and Sunrun have dropped by 70% and 40%, respectively, over the past year. The continuing bad news for solar has also led to a surge in bankruptcies, with two major industry players – residential solar provider Sunnova and financing firm Mosaic – filing for bankruptcy in June.
| Company | Yearly Drop |
|---|---|
| Enphase Energy | 70% |
| Sunrun | 40% |
A Shift in Solar Energy Distribution
Despite the Trump administration’s efforts to target residential solar, the industry has experienced a significant shift in distribution. According to the Solar Energy Industries Association, solar energy is now well-distributed throughout the country, with states that voted for President Trump in the 2024 election experiencing a surge in solar installations and manufacturing investments.
- 80% of the solar manufacturing investments since August of 2022 have flowed to congressional districts represented by Republicans.
- 14 of the 20 states that installed the most solar capacity in 2024 voted for President Trump last year.
Utility-Scale Solar and Other Energy Sources
It’s worth noting that utility-scale solar, hydropower, nuclear, and geothermal energy may be shielded from the worst effects of the Trump administration’s policies. These energy sources may retain tax credits and continue to receive funding.
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