Despite President-elect Donald Trump’s promise to repeal the Democrats’ 2022 Inflation Reduction Act (IRA), which provides tax credits and subsidies for renewable energy projects, the green energy industry may still thrive. Most projects have brought jobs and investment dollars to Republican-held Congressional districts, making it unlikely for the IRA to be completely repealed. Additionally, Trump’s policies of cutting corporate tax rates and red tape could benefit green energy projects by speeding up the process of siting and constructing them.
Green energy is already on a trajectory of growth beyond the need for subsidies. Economics, customer demand, and the surging need for electricity, particularly from data centers supporting artificial intelligence, will continue to drive the growth of alternative energy. Even without government incentives, wind and solar are the cheapest forms of electricity generation in the U.S., and advancements in technology will continue to drive costs down.
State and local policies, as well as the private sector, will continue to support green energy initiatives. State utility commissioners and grid operators have the power to dictate what gets built and can mandate green power generation. Additionally, big oil companies like ExxonMobil are also invested in climate solutions and may continue to support green initiatives. Natural gas, while a fossil fuel, has significantly reduced carbon emissions and may continue to play a role in the green transition.
The green revolution has momentum and market share is shifting towards renewable energy sources. Despite challenges and potential policy changes, the industry is expected to continue growing. Capitalists will find ways to invest in and support green technologies, and advancements in AI and materials science will drive breakthroughs in small-scale nuclear and geothermal energy. The future of green energy remains bright, with opportunities for growth and innovation.
It will be interesting to see how the green energy industry navigates potential policy changes under the Trump administration and continues to grow and evolve in the coming years. Despite challenges, the momentum of the green revolution and the support from various sectors indicate that the industry is well-positioned to thrive in the future. Time will tell how the industry adapts to potential changes and continues on its path towards a more sustainable energy future.
