The United States’ energy future is facing a critical time. Demand for electricity is surging — driven by AI data centers, reshoring of manufacturing and electrification of industry — and the electric grid is under unprecedented strain. According to a , the U.S. is projected to need 50% more annual electric energy production in 2035 than it does today.
This combination of rising demand and constrained supply is setting us up as a nation for dangerous energy scarcity, resulting in economic risks. Higher electricity costs will burden businesses and consumers alike, and grid instability threatens economic competitiveness. Without swift action, this imbalance will only worsen.
The most immediate and impactful step federal lawmakers can take to safeguard our country’s energy future is to protect the long-term stability for the Clean Energy Investment Tax Credit (ITC), a cornerstone of America’s energy expansion and dominance.
All-of-the-above energy approach
The ITC is technology-neutral and supports an “all-of-the-above” energy approach, which includes carbon-free energy sources such as solar, wind, nuclear and geothermal. To ensure affordable, reliable electricity and a strong electric grid, the U.S. must do everything it can to bring new energy sources online as quickly as possible. The Brattle Group report maintains that serving this growth will require much more supply, and our country’s historical reliance on oil and gas has driven us to a dangerous point of energy scarcity. There is an existing solution though: thousands of renewable energy and energy storage projects are already in development. We know from firsthand experience that they can be deployed relatively quickly.
According to the , 93% of new energy capacity that came online in 2024 was renewable energy. Solar is the fastest-growing energy source — 84% of all new energy capacity added to the U.S. energy grid in 2024 came from solar and energy storage. Solar is also cost-effective and scalable, accounting for in capital investment in 2024. Continuing that level of deployment requires investing in renewable energy, American manufacturing energy dominance and innovation.
American consumers deserve energy affordability and certainty
Despite recent uncertainty, the renewable energy sector has demonstrated remarkable growth. Solar has been the largest source of new electricity capacity for the past several years, thanks in large part to the ITC. The ITC has provided the financial foundation not only for solar energy and other renewable projects, but for a broad range of necessary energy production, driving job creation, cost reductions and technological advances.
Electricity prices are spiking across the country. According to U.S. conservative think tank American Enterprise Institute (AEI), electricity prices are , when considering inflation. U.S. businesses, communities and consumers will be directly and negatively impacted if the investment tax is repealed: the found that if renewable energy tax credits are repealed, electricity prices could increase 9.2% across all sectors by 2029.
American families need to be able to pay their electric bills. A stable ITC ensures that energy companies can secure financing and proceed with confidence to build energy projects that will keep electric bills from rising further, as well as reinforce supply chains and create high-paying jobs across the country.
Economic and energy dominance is at stake
A reliable, diversified energy supply reduces dependence on imported fuels. Locally generated solar power, by definition, enhances energy independence and grid resilience. The reality is that we need an energy strategy that includes all-of-the-above sources to meet unprecedented demand for new electricity, driven in large part by a rapidly changing economy that relies on massive amounts of data centers to keep our industries outpacing our international competitors.
Solar projects also produce great economic benefits for communities throughout the U.S. by creating local jobs, generating hundreds of thousands of dollars of local property tax revenue to rural communities and providing Americans with low-cost, reliable power. In Colorado alone, Pivot Energy’s portfolio of 120 community-scale projects will result in 6,000 construction jobs, $124 million in property taxes invested in local communities and $100 million in grid investments to modernize the grid and make it more reliable.
A clear path forward
Republicans in both the House and Senate have already shown support for the ITC because they understand that keeping it in place supports an “all-of-the-above” energy approach. If repealed or modified, it could significantly impact critical new energy production needed to quickly close the energy scarcity gap.
At a time when the energy landscape is shifting rapidly, consistent federal policy is the key to ensuring that we have reliable and persistent energy production growth that strengthens — rather than destabilizes — the economy. America’s energy future is about economic competitiveness, national security and community resilience.
The path forward is clear — now it’s up to lawmakers to act.
The federal energy tax credits must be kept in place for business to help keep our economy growing locally.
Solar ITC Credit is pivotal in success of Solar Power projects in USA. It is important that it should be kept in place just like fossil fuel investment tax credits in place. Customers, Investors and Financiers all benefit tremendously with Solar ITC Tax Credit and make small to large projects affordable and financially viable. With Climate crisis growing around the world and Geo-political tensions increasing in recent times, producing your solar power and use battery system to charge and provide power to home, business and to community is the best solution on the market. To encourage this solution and provide mitigation towards inflation in electric utility markets, Solar systems can provide cost/benefit and risk hedging.