PVTIME – US President Donald Trump has signed an executive order to end federal subsidies for wind and solar energy, marking a significant milestone in the implementation of the One Big Beautiful Bill Act (OBBBA), which came into force on 4 July 2025. This overrides earlier provisions in the OBBBA that allowed eligible wind and solar projects to claim clean energy tax credits under the Inflation Reduction Act, provided construction began within 12 months of the bill’s passing or they were connected to the grid by December 2027.
The new order directs the US Treasury to terminate tax credits for clean electricity production and investment under Sections 45Y and 48E of the Internal Revenue Code. It also requires the Treasury to strengthen measures to repeal and adjust OBBBA’s tax incentives for such green energy sources. Restrictions on Foreign Entities of Concern (FEOC), as outlined in the Act, will also be tightened.
The Department of the Interior (DOI) has been instructed to revise its regulations so that wind and solar projects are no longer given preferential treatment in terms of approvals, regulations and federal support schemes. Instead, the DOI must prioritise ‘reliable, dispatchable energy’, including nuclear power, fossil fuels and emerging technologies. The Treasury and the DOI must submit a report to the President detailing their findings, actions taken, and planned steps to implement the measures by 18 August, 45 days from the order’s issuance.
The White House has stated that this move is intended to address concerns that so-called ‘green subsidies’ have made the US dependent on foreign adversaries for its supply chains, thereby posing a risk to national security. The statement emphasised that ending large-scale financial support for ‘unreliable’ energy sources is crucial for achieving energy dominance, national security, economic growth and fiscal health.
The order’s impact will depend on how the administration redefines the ‘start of construction’ rules; currently, developers who meet certain conditions under Sections 45Y and 48E are granted a four-year window for project delivery.
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