The Trump Administration has issued 26 executive orders since the President returned to office, at least three of which will directly impact renewable energy policy. The most noteworthy action to date includes a 90-day moratorium on funding provided by the IRA that could impact homeowners reliant upon federal incentives to upgrade to clean energy. But despite such uncertainty, homeowners who make upgrades in 2024 can still claim the corresponding tax credits. It’s not so clear if such incentives beyond 2024 will see the light of day, though.
Suspension of the Inflation Reduction Act Funding
The IRA was a seminal legislative accomplishment in pursuit of clean energy and had emerged as a target of some of Trump’s executive actions. By freezing its funding, Trump’s administration has put federal incentives for solar panel installation, energy-efficient appliances, and electric vehicle purchases in jeopardy. Though the suspension is legally contentious—presidents cannot unilaterally refuse to spend Congress-approved funds—it represents a major shift in federal energy policy. As the Protect the Law Foundation pointed out, such suspension in the IRA’s funding is temporary and entirely repealing it would face considerable legislative hurdles-in particular, with bipartisan support for the act.
Homeowners who put clean energy projects in place in 2024 are still assured of IRA-backed tax credits upon filing. The longer-term outlook of such incentives may well depend on whether the Trump administration’s broader energy policy will ever find its legs.
The State of Solar Energy
While the executive orders from Trump target wind energy and electric vehicles, the implications for solar energy are murkier. Trump has spoken out in the past against large-scale solar farms, but he has voiced support for rooftop solar panels. The IRA funding currently on hold includes federal incentives for solar energy projects, but the particulars are not well defined. Notably, the national energy emergency declared by the administration does not consider solar energy to be a critical resource but rather places its emphasis on traditional energy sources such as fossil fuels, oil, natural gas, geothermal, and hydropower.
Cancellation of EV Tax Credits
Among the many executive orders issued by the Trump administration were those that aim to cancel incentives for buying electric vehicles. The orders, citing a need to eliminate “EV mandates” and to end “unfair subsidies that distort the market,” would defund IRA provisions creating EV charging infrastructure. There has never been a federal mandate that requires Americans to drive EVs, but Biden-era rules established pollution standards for new vehicles from 2027 through 2032-including advanced gasoline, hybrid and electric models. Exactly how Trump’s executive orders will impact these norms is not clear, but their intent to roll back incentives for EVs shows a more broader policy direction.
The Future of Clean Energy Funding
But, for now, hold IRA funding that’s supposed to last only for a period of just 90 days puts in flux temporarily the future of federal incentives for clean energy. The speed at which Trump issues executive orders clarifies the administration’s intent well enough, and actually repealing the IRA-wholly or shaping its modifications-has remained very legally and legislatively difficult; full rollback is doubted as broad bipartisan support exists for most IRA provisions.
The next few months will be crucial for homeowners and businesses looking to invest in solar energy, EVs, or other clean energy upgrades, with the stability of federal incentives hanging in the balance. But even without federal support, the momentum for renewable energy—driven by market forces and state-level initiatives—will likely continue to reshape the U.S. energy landscape.
