Trump Signs Executive Order to End Subsidies for Wind and Solar Energy Sources

President Trump signed an Executive Order to eliminate subsidies for unreliable "green" energy sources like wind and solar. The Order directs the Secretary of the Treasury to terminate tax credits for wind and solar facilities and eliminate preferential treatment for these sources. This move is part of the One Big Beautiful Bill Act. Publicly traded companies in the solar energy space include Array Technologies, Canadian Solar, and Sunrun.

President Donald Trump signed an executive order on July 7, 2025, aimed at eliminating subsidies for unreliable "green" energy sources like wind and solar. The order directs the Secretary of the Treasury to terminate tax credits for wind and solar facilities and eliminate preferential treatment for these sources, as part of the One Big Beautiful Bill Act.

The executive order, issued under the authority vested in the President by the Constitution and the laws of the United States, states that the Federal Government has long forced American taxpayers to subsidize expensive and unreliable energy sources, which displaces affordable, reliable, dispatchable domestic energy sources and compromises the electric grid. Moreover, reliance on so-called "green" subsidies threatens national security by making the United States dependent on supply chains controlled by foreign adversaries [1].

Section 3 of the order requires the Secretary of the Treasury to take action within 45 days of the enactment of the One Big Beautiful Bill Act to strictly enforce the termination of clean electricity production and investment tax credits under sections 45Y and 48E of the Internal Revenue Code for wind and solar facilities. This includes issuing new and revised guidance to prevent artificial acceleration or manipulation of eligibility and restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built [1].

The order also directs the Secretary of the Interior to conduct a review of regulations, guidance, policies, and practices under the Department of the Interior's jurisdiction to eliminate any preferential treatment for wind and solar facilities in comparison to dispatchable energy sources [1].

Publicly traded companies in the solar energy space, such as Array Technologies, Canadian Solar, and Sunrun, may be significantly impacted by this order. The One Big Beautiful Bill Act, which the executive order is a part of, allows power and storage projects that start construction by December 31, 2025, to avoid some new restrictions on the use of Chinese equipment. However, solar and wind projects that are not under construction by July 4, 2026, must be in service by the end of 2027 to qualify for tax credits [2].

The executive order and the One Big Beautiful Bill Act aim to reduce the market distortions and costs imposed on taxpayers by "green" energy subsidies and end taxpayer support for unaffordable and unreliable "green" energy sources and supply chains built in and controlled by foreign adversaries. The order emphasizes the importance of energy dominance, national security, economic growth, and the fiscal health of the Nation.

References:
[1] https://www.whitehouse.gov/presidential-actions/2025/07/ending-market-distorting-subsidies-for-unreliable-foreign%E2%80%91controlled-energy-sources/
[2] https://www.projectfinance.law/publications/2025/july/effects-of-one-big-beautiful-bill-on-projects/