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Trump Signs Executive Order to End Wind and Solar Subsidies by 2027

On July 8, 2025, U.S. President Donald Trump issued an executive order to phase out federal tax credits and subsidies for wind and solar energy projects, calling these technologies “unreliable, expensive, and harmful to the electric grid.” The directive mandates the Treasury and Interior departments to enforce the energy subsidy rollback provisions of the One Big Beautiful Bill Act, signed into law last week. Agencies are required to submit a detailed compliance report to the White House within 45 days.

Under the new rules, wind and solar projects must begin construction by the end of 2026 and be operational by 2027 to qualify for tax credits. This marks a sharp departure from the earlier provision that allowed a 30% Investment Tax Credit (ITC) for renewable projects through 2032.

The executive order reflects the administration’s broader energy strategy, which favors fossil fuels and aims to reduce dependency on what it terms “foreign-controlled renewable supply chains.” This move is expected to create uncertainty in the U.S. clean energy sector, potentially slowing project pipelines and impacting global climate goals.

Analysts warn the decision could stall progress toward carbon neutrality, disrupt supply chains, and limit investment in renewable energy, both in the U.S. and globally.