President Trump’s budget bill phases out wind and solar power tax credits created during the Biden Administration. These tax credits help energy companies pay for projects that produce solar and wind energy. Director of LSU’s Center for Energy Studies, Doctor Greg Upton, says without this federal subsidy, ratepayers will pick up more of the cost, but the impact is several years away.
“The effect of that is going to be very, very, very lagged because any facilities that are on today are currently receiving those subsidies and will continue to, through the life of the facility,” Upton said.
New solar and wind energy projects can still receive the tax credit, but construction needs to start in the next year to qualify.
Louisiana Public Service Commissioner Davante Lewis has said the bill signed into law by the President last week will raise electricity prices. Upton says it’s possible, but not in the short term.
“It does, theoretically, have the potential to impact rates for consumers. But the magnitude of that is probably really, really small, and the effect of that is going to be over a longer period of time,” Upton said.
There are 14 utility-scale solar farms in Louisiana, five of these farms were built last year. The Advocate reports there are at least five utility-scale wind projects in development in Louisiana.
Upton says less than 1% of our electricity in Louisiana comes from solar and wind and that percentage will likely not grow as a result.
“And so is this going to slow the speed at which these technologies move forward. I definitely think it will slow that speed,” Upton said.
