Latest news with #CleanEnergyBuyersAssociation
Yahoo
7 hours ago
- Business
- Yahoo
Electricity costs are already jolting Americans - Trump's bill could hike them another $400 a year
Amid already high, and rising, electricity prices, President Donald Trump's broad domestic policy bill, which is up for debate in the Senate, could make the situation even worse. If the legislation passes as it currently stands, it would remove federal tax credits from the Biden presidency for sources of electricity such as solar, wind, batteries and geothermal power, The New York Times noted. Several studies from this year reveal that the energy bill of the average family could rise as much as $400 annually. For the first time in decades, demand for electricity is on the rise, in part because of the construction of data centers required for artificial intelligence. And power companies are having difficulties keeping up with the rising needs. The removal of tax breaks for wind turbines, solar panels, and batteries would make such sources of power more expensive, and their availability would decrease. As a result, the demand for power from natural gas would rise. This could lead to a rise in gas prices, which at the moment is responsible for 43 percent of U.S. electricity. The Trump administration has also taken action to sell more gas abroad, which could lead to further price rises. Additionally, Trump's levies on steel, aluminum, and other construction materials would increase the cost of transmission lines and other kinds of electrical equipment. The Clean Energy Buyers Association, which represents companies that have committed to buying renewable energy, commissioned a study that found that the repeal of clean energy credits would lead to a 13 percent increase in electricity in states such as New Jersey, North Carolina, Arizona, and Kansas. It could also lead to the loss of thousands of jobs by 2032. Trump administration and gas industry officials push back on such claims, arguing that the president's measures to make it cheaper to drill and build pipelines will lead to a decrease in electricity prices. They also argue that wind and solar have received subsidies for decades and that their continuing expansion could make the electric grid less dependable. A spokesperson for the Department of Energy told The Times that the president's 'agenda is to lower the cost of oil production in the United States, lower the cost of natural gas production in the United States — that ultimately will lead to lower average prices and at the same time profitability for businesses.' 'Prices are going to move up and down in the short term,' he added, however, noting that the administration would be focusing on policies 'that will deliver long-lasting prosperity.' Four Republican Senators wrote in a letter in April that, because of the rising demand for energy, 'it is imperative that any modifications to the tax code avoid worsening the economic pressures that American households and businesses already face.' 'For energy credits that provide a direct passthrough benefit to ratepayers, repeals would translate into immediate utility bill increases, placing additional strain on hardworking Americans,' they added. The Energy Information Administration found that since 2022, U.S. residential electricity prices have increased by 13 percent on average. In Ohio, prices are on the rise as data centers are being built in the state. Meanwhile, in California, wildfires are a source of rising costs. One of the major reasons behind rising prices is the unstable nature of natural gas prices, which rose sharply following the Russian invasion of Ukraine in 2022. After falling to record lows in 2024, gas prices are set to almost double this year and rise even more next year. This comes as demand is on the rise domestically, even as the U.S. is selling more gas overseas. Since 2022, the cost of building gas power plants has almost tripled. Gas companies are now in the midst of wait times of up to half a decade for new gas turbines. Meanwhile, drilling for natural gas has grown more expensive amid rising equipment costs due to tariffs. As of 2020, 34 million households stated that they struggled to pay their energy bills and kept their homes at unsafe temperatures because of worries about costs. This comes as the Trump administration has vowed to end the Low Income Home Energy Assistance Program, which helps 6.2 million people pay for high energy bills. The executive director of the National Energy Assistance Directors Association, Mark Wolfe, told The Times that 'We've got millions of families that are already struggling to pay their bills.' 'Now you bring in extreme temperatures, record heat, and it's a very bad situation,' he added.
The Independent
7 hours ago
- Business
- The Independent
Electricity costs are already jolting Americans - Trump's bill could hike them another $400 a year
Amid already high, and rising, electricity prices, President Donald Trump 's broad domestic policy bill, which is up for debate in the Senate, could make the situation even worse. If the legislation passes as it currently stands, it would remove federal tax credits from the Biden presidency for sources of electricity such as solar, wind, batteries and geothermal power, The New York Times noted. Several studies from this year reveal that the energy bill of the average family could rise as much as $400 annually. For the first time in decades, demand for electricity is on the rise, in part because of the construction of data centers required for artificial intelligence. And power companies are having difficulties keeping up with the rising needs. The removal of tax breaks for wind turbines, solar panels, and batteries would make such sources of power more expensive, and their availability would decrease. As a result, the demand for power from natural gas would rise. This could lead to a rise in gas prices, which at the moment is responsible for 43 percent of U.S. electricity. The Trump administration has also taken action to sell more gas abroad, which could lead to further price rises. Additionally, Trump's levies on steel, aluminum, and other construction materials would increase the cost of transmission lines and other kinds of electrical equipment. The Clean Energy Buyers Association, which represents companies that have committed to buying renewable energy, commissioned a study that found that the repeal of clean energy credits would lead to a 13 percent increase in electricity in states such as New Jersey, North Carolina, Arizona, and Kansas. It could also lead to the loss of thousands of jobs by 2032. Trump administration and gas industry officials push back on such claims, arguing that the president's measures to make it cheaper to drill and build pipelines will lead to a decrease in electricity prices. They also argue that wind and solar have received subsidies for decades and that their continuing expansion could make the electric grid less dependable. A spokesperson for the Department of Energy told The Times that the president's 'agenda is to lower the cost of oil production in the United States, lower the cost of natural gas production in the United States — that ultimately will lead to lower average prices and at the same time profitability for businesses.' 'Prices are going to move up and down in the short term,' he added, however, noting that the administration would be focusing on policies 'that will deliver long-lasting prosperity.' Four Republican Senators wrote in a letter in April that, because of the rising demand for energy, 'it is imperative that any modifications to the tax code avoid worsening the economic pressures that American households and businesses already face.' 'For energy credits that provide a direct passthrough benefit to ratepayers, repeals would translate into immediate utility bill increases, placing additional strain on hardworking Americans,' they added. The Energy Information Administration found that since 2022, U.S. residential electricity prices have increased by 13 percent on average. In Ohio, prices are on the rise as data centers are being built in the state. Meanwhile, in California, wildfires are a source of rising costs. One of the major reasons behind rising prices is the unstable nature of natural gas prices, which rose sharply following the Russian invasion of Ukraine in 2022. After falling to record lows in 2024, gas prices are set to almost double this year and rise even more next year. This comes as demand is on the rise domestically, even as the U.S. is selling more gas overseas. Since 2022, the cost of building gas power plants has almost tripled. Gas companies are now in the midst of wait times of up to half a decade for new gas turbines. Meanwhile, drilling for natural gas has grown more expensive amid rising equipment costs due to tariffs. As of 2020, 34 million households stated that they struggled to pay their energy bills and kept their homes at unsafe temperatures because of worries about costs. This comes as the Trump administration has vowed to end the Low Income Home Energy Assistance Program, which helps 6.2 million people pay for high energy bills. The executive director of the National Energy Assistance Directors Association, Mark Wolfe, told The Times that 'We've got millions of families that are already struggling to pay their bills.' 'Now you bring in extreme temperatures, record heat, and it's a very bad situation,' he added.
Yahoo
18-05-2025
- Business
- Yahoo
Opinion: Utah leads, Washington spends
In Utah, we know what it takes to do things right. We don't need federal lectures about energy efficiency — we live it every day. When you're heating a home through a mountain winter or running a small business on a tight budget, you learn to work smart. That's why the Biden administration's Inflation Reduction Act (IRA) doesn't exactly land here. Sure, the headlines sound promising: up to $3,200 a year in tax credits for upgrades like insulation, windows and heat pumps. But if you read the fine print — like the IRS Fact Sheet FS-2022-40 — you'll notice it's not that simple. Claiming the credit means navigating a maze of IRS rules. For something advertised as 'help,' it sure doesn't feel easy. Washington's idea of efficiency doesn't fit Utah. The federal government's favorite solutions — like heat pumps — aren't always the best fit for Utah's diverse climates. What works in a Salt Lake suburb might not work in a small town at 7,000 feet elevation. Yet the IRA's incentives mostly reward trendy technology, not practical upgrades tailored to where — and how — people actually live. Meanwhile, local contractors and small businesses are left grappling with federal red tape just to participate. Utah's already leading — and we don't need permission. Our state has long invested in renewable energy, smart grid technology and energy efficiency — all without heavy-handed federal mandates. We know what works here because we live here. Some of the IRA provisions can help Utah's investments: there are three projects tied to the IRA worth $1 billion of investments in the state. For instance, the 45X advanced manufacturing tax credit, which creates the incentive for companies to manufacture here in America, is a core part of an America-first trade policy. Recent Rainey Center polling found that 59% of voters support clean energy incentives, but only when the products are made in America, by American companies. Only 16% want these credits to end. However, voters don't support tax credits going to foreign companies — these policies need to end. Another key provision of the IRA that makes sense is technology-neutral tax credits. Rather than creating a system where the government picks winners, technology-neutral tax credits let carbon capture, geothermal and clean fossil fuels compete on the same level as solar and wind. A recent Clean Energy Buyers Association report shows why: they find that full repeal of the technology-neutral investment and production tax credits would lead to an annual average yearly increase of more than $110 for annual electricity prices. Projections suggest these positive aspects of the IRA will boost Utah's GDP by $1 billion in 2030. These policies make sense — but tech-neutral tax credits for innovation should never have been bundled with tax breaks for Chinese companies and a slush fund for radical left wing NGOs. That's why Senator John Curtis is one of the four senators advocating for a surgical approach to repealing the IRA. If Washington really wants to help, they'll get out of the way and let local leaders and businesses drive practical solutions. Utahns don't need more complexity. We need flexibility, respect and policies that actually meet our needs — not Washington's wish list.
Yahoo
16-05-2025
- Business
- Yahoo
Republican push to cut green tax credits would raise utility bills, new data shows
As House Republicans propose taking a sledgehammer to the green tax credits in Joe Biden's Inflation Reduction Act, new data shows the loss of those incentives could lower some Americans' household income by more than $1,000 a year due to increased utility bills and job losses. Though Donald Trump has called climate spending a 'waste' of money, the data – published by the industry group Clean Energy Buyers Association (Ceba) on Thursday – provides evidence that rescinding them would actually increase expenses for ordinary Americans in red and blue districts alike. The rollback would increase the price of electricity and gas, the report found. And it would lead to job losses and 'economic slowdown', it says. Related: Why is US energy demand soaring – putting climate goals at risk? 'Americans voted to combat the cost-of-living crisis in the 2024 election,' said Rich Powell, CEO of Ceba. 'Now is the time for Congress to incentivize private investment in more sources of low-cost, reliable energy that fuels economic growth and jobs, helps the United States secure energy dominance and independence, and decreases energy costs nationwide.' The new figures, crunched for Ceba by the National Economic Research Associates consulting firm, focus specifically on credits 48E and 45Y, for clean energy investment and production respectively. In a reconciliation package draft this week, the House ways and means committee proposed phasing out these incentives after 2031, and placing many new restrictions on them in the meantime. If the rollbacks proceed as proposed, the new study found, at least 19 states would see the cost of energy increase for both consumers and industry between 2026 to 2032. (More states would probably see similar impacts, but the authors did not examine all 50 'because of the turnaround time for research', Ceba said). New Jersey is the state expected to see the biggest economic losses if the clean energy investment and production credits are repealed, the authors found. There, the authors found the rollback could increase household gas and utility bills by 2.9% and 13.3% respectively. The repeal would also trigger the loss of 22,180 jobs, they found. All told, households across the state would see a stunning $1,040 average loss in annual household income and a $3.24bn decrease in state GDP, the authors wrote. 'As commercial and industrial activity declines, demand for labor and capital falls, leading to wage losses, declining household income, and shrinking investment,' the research says. The authors' outlook for state-level electricity markets assumes an incremental growth in electricity demand due to the growth of data centers. Some of Ceba's members are tech giants – including Amazon, Google and Meta – who are bringing more data centers online. An earlier Ceba report, published in February, forecast the effect on electricity prices alone across all 50 states. If the clean energy investment and production credits are repealed, the average American household would see their annual household utility bills increase by $110 by 2026, it found. Wyoming would see the largest rise of 29.5% on average for households across the state, the earlier report found.
Yahoo
15-05-2025
- Business
- Yahoo
Repealing energy tax credits would raise electricity costs, study says
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Repealing technology-neutral clean energy tax credits would raise the cost of energy for consumers and industry across 19 states from 2026 to 2032 by increasing reliance on natural gas generation sources that have constrained availability, according to a new study released Thursday by the Clean Energy Buyers Association. Republicans in Congress have targeted the tax credits for early phase-out as they seek to fulfill President Donald Trump's campaign promises to extend certain tax cuts and repeal clean energy incentives the president has derided as a 'scam.' The study found that energy-intensive sectors such as iron and steel, chemicals, cement, aluminum and nonferrous metals would be hardest hit. CEBA's members include many of the technology giants, such as Amazon, Google and Meta, whose data centers and AI models are largely driving the increase in electricity demand. 'They are very concerned that if we don't handle this rising electricity demand in a very, very responsible way, that we're going to see very high electricity price increases both for our own businesses and for our customers,' CEBA CEO Rich Powell said in an interview. He said many CEBA member companies are in 'growth mode,' pouring huge investments into building new technology, manufacturing and retail sites. 'Anything that destabilizes the electricity system right now, and the economics of the electricity system, could be really difficult for our businesses,' he added. The study, which NERA Economic Consulting conducted for CEBA, modeled the state-level electricity market outlooks assuming incremental electricity demand from the growth of data centers under two scenarios, with and without the federal investment and production tax incentives. It also provided a breakdown of projected cost increases in certain states. Seven of the 19 states would see double-digit percentage increases in average household and business electricity prices in the 2026-2032 period, according to the study. Maine would see the highest average increases, projected at 20% for households and 19.3% for businesses. The increased costs would reduce economic growth, the study states. 'As commercial and industrial activity declines, demand for labor and capital falls, leading to wage losses, declining household income, and shrinking investment,' it states. 'The scale and severity of these impacts vary by state but are significant and far-reaching.' Utilities have also voiced concerns. The Edison Electric Institute, which represents investor-owned utilities, has come out in favor of keeping the incentives, saying they support Trump's stated goals of keeping energy prices as low as possible and strengthening U.S. competitiveness, national security and energy dominance.
