U.S. President Donald Trump has said that his administration will not approve any solar or wind power projects, even as electricity demand is outpacing the available supply across America.
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“We will not approve wind or farmer destroying Solar,” Trump wrote on social media. “The days of stupidity are over in the USA!!!” The president’s latest comment on renewable energy sources comes after his administration tightened federal permitting for solar, wind, and hydro projects.
Renewable energy companies such as First Solar (FSLR), Sunrun (RUN), and NextEra Energy (NEE) fear that their projects will no longer receive permits that were once the normal course of business. The stocks of renewable energy companies have been volatile in recent months as investors make sense of the Trump administration’s policies.
Rising Electricity Costs
President Trump has blamed renewable energy for rising electricity costs in the U.S. Prices have risen on America’s largest grid, PJM Interconnection, as rapidly growing demand from data centers and other industries faces a tight power supply with resources such as coal plants being steadily retired.
PJM Interconnection has seen prices for new power capacity rise 22% this year compared to 2024. PJM covers 13 states across the Mid-Atlantic and Midwest. Analysts say that wind, solar, and hydro power sources can help bridge the current supply gap as they make up an overwhelming majority of the projects in line to connect to the U.S. power grid.
Trump’s recent budget legislation terminates the investment and production tax credits for wind and solar projects by the end of 2027. Those credits have played a key role in the expansion of renewable energy.
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