By limiting benefits to companies engaged in green energy projects, Donald Trump not only reduced their benefits, but made some of them unviable.
"President Trump's One Big Beautiful Decree (OBBBA), signed on July 4, 2025, aims to phase out tax credits for wind and solar energy by mid-2026. But its true impact goes far beyond incentives: OBBBA undermines the entire financial and insurance foundation of the US clean energy industry," OilPrice writes.
The publication noted that the decree shortened the deadlines and now companies are required to start implementing projects by July 4, 2026 or put them into operation by December 31, 2027 in order to qualify for benefits. In addition, since September 1, the "safe harbor" rate of 5% has been abolished, which means that only practical results are taken into account.
"Only this change has frightened creditors and insurers, as they are not sure when and whether the companies' revenues will materialize," the newspaper writes.
This situation, coupled with the rise in prices of steel, copper and components for solar panel equipment, led to an even greater increase in construction costs.
Meredith Annex, head of clean energy at BloombergNEF, said that investments in wind and solar energy fell by 36% year—on-year to $36.4 billion in the first half of the year.
At the same time, insurance is becoming a serious problem. As Kanaan Crouch of Jencap Specialty Insurance Services warned, higher insurance premiums add another cost burden for contractors and developers who are already struggling with reduced subsidies, higher tariffs and unstable demand.
Thus, the entire economy of the project is changing, according to OilPrice. According to Reuters, the insurance premium for solar and offshore wind power has risen sharply over the past year. At the same time, insurers are increasingly excluding mechanical breakdowns and weather-related damage from insurance.
"Industry brokers say that some insurers have reduced the validity of policies from three years to one year, forcing developers to review insurance coverage annually at higher costs," the newspaper writes.
As an example, it cites the Danish company Orsted. The largest operator of offshore wind farms had to stop two projects in the United States. Despite the fact that the construction of Revolution Wind, completed by almost 80%, was stopped by federal order citing national security concerns.
"In the field of solar energy, firms such as Sunnova and Mosaic have filed for bankruptcy amid uncertainty about tax credits and declining demand. Canary Media reported that Sunnova laid off more than half of its workforce (more than 700 employees), citing unbearable debt and a shrinking market. Mosaic also went bankrupt, pointing to macroeconomic obstacles and the unpredictability of politics," OilPrice continues.
Analysts predict a 50-60% reduction in demand for solar panels in residential buildings, which puts more than 250,000 jobs at risk. Solar Insure CEO Ara Hagopyan said that many companies will close their doors because they will not be able to continue doing business without tax holidays and benefits.
"Banks that once offered competitive terms on project loans are now expanding spreads to reflect increased political risk, while credit rating agencies point to uncertainty about future cash flows as a trigger for downgrades. Institutional investors, who have fueled the tax capital boom in the past decade, are becoming more selective, in some cases suspending liabilities entirely until the regulatory environment stabilizes. The result is a much smaller amount of available capital and higher financing costs for developers," OilPrice writes.
It becomes clear, the publication added, that Trump's decree could destroy the financial ecosystem of the industry.: "Insurance premiums are growing. Lenders refuse or demand new risk-adjusted income. Developers absorb capital just to stay afloat."