With eliminated tax credits, solar power heads into uncertain times

President Donald Trump’s massive budget bill eliminates tax credits and incentives for small and large scale solar and wind projects in Minnesota. It’s also projected to increase electricity bills across the state.

The clean energy industry in Minnesota is now trying to figure out a new path forward in the wake of the massive federal budget bill where credits will dry up at the end of the year.

“There’s no phase-down period,” said All Energy Solar co-founder and CEO Michael Allen. “At the end of 2025, the residential tax credit is being eliminated, the commercial tax credit has a slightly longer extension, but it’s still also pretty painful for the industry and ultimately on the commercial side.”

Allen explained that energy still needs to be produced — somewhere — and the utility industry will likely buy or generate electricity from traditional sources: oil, coal and gas.

“If you look at it from a cost comparison, solar and wind consistently beat out those traditional forms of electricity when it comes to cost,” Allen said. “The expectation is that consumers in Minnesota will ultimately have to pay higher electricity prices because of these adjustments to the tax credits.”

Allen added, from policy standpoint, the clean energy industry will look to individual states to step up, including Minnesota which has a 100 precent carbon-free goal by 2040.  

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