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New York Post
14 hours ago
- Business
- New York Post
Trump's budget bill cuts off the green-energy cash spigot — and it's about time
The 'big, beautiful' budget bill passed by the House of Representatives, if enacted in its current form, will eliminate clean-electricity tax credits, including for wind and solar power, starting in 2029. It will require projects seeking to receive those subsidies to begin construction within 60 days of the legislation becoming law, and to start operating by 2028. This is great news for both fiscal sanity and energy reality, both of which have been in short supply for far too long. This 'temporary' tax credit was first enacted in 1992 to help the then-nascent onshore wind and solar industries. Congress always set it to expire years into the future, providing ample opportunities for politicians to extend and enlarge it. They have done so 12 times. The Investment Tax Credit used by offshore wind developers like the Norwegian government-owned Equinor, which is relying on it to build Empire Wind off the coast of New York, has been around even longer — it was first enacted almost a half-century ago. But the ITC was greatly expanded under President Joe Biden's ill-named Inflation Reduction Act, enabling offshore wind developers to qualify for up to 50% of their construction costs. Far from being temporary, these tax credits have become a permanent crutch. As Warren Buffett commented back in 2014, the only reason his MidAmerican Energy company built wind turbines was to capture the tax credits. Wind and solar developers have been allowed to stick taxpayers and ratepayers with the bills, assuming they would continue to do so for many years. Consequently, the proposed rapid demise of these tax credits has ignited howls of outrage from green energy advocates, as well as politicians from both sides of the aisle, who contend it will devastate state economies and destroy thousands of jobs. In New York, Gov. Kathy Hochul claimed that transforming the South Brooklyn Marine Terminal into the nation's largest offshore wind port would be 'a large step forward in our commitment to build a sustainable future and foster economic growth.' In New Jersey, where Gov. Phil Murphy's dreams of an offshore wind nirvana have sunk, officials lamented the House bill's passage. Get opinions and commentary from our columnists Subscribe to our daily Post Opinion newsletter! Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters 'It's very strange to me, very, very strange,' said Tim Sullivan of the NJ Economic Development Authority. 'I've never seen a situation where elected officials are celebrating something that is killing jobs.' It's not just Democrats: Iowa's Republican Sen. Chuck Grassley has been a consistent defender of wind-energy subsidies. But whether it's tax credits or long-term contracts that force ratepayers to pay above-market prices for these intermittent energy resources, the pro-subsidy crowd ignores economic reality. Sure, subsidizing an industry or an individual firm can 'create' jobs — but those subsidies must be paid for by someone. We pay in the form of soaring electricity rates. In New York, residential customers paid an average of over 24 cents per kWh last year, 50% higher than the US average and 25% percent more than they paid in 2020. Commercial customers, including thousands of small businesses, also paid rates 50% higher than the rest of the country. It's basic economics that, if you are forced to pay more for electricity, you have less money to spend on everything else. Whether it's households forced into energy poverty or businesses that cannot afford to invest and expand, the adverse effects of high-priced electricity ripples through the entire economy. Moreover, the subsidized jobs the green-energy advocates and their political enablers wish to create are hugely expensive. Over the life of an offshore wind project, including the now-greenlit Empire Wind, the average costs are over $1 million per job — each and every year. That's obviously far more than any of the project's workers will be paid. It's an overarching economic fallacy to justify any green-energy subsidy on the promise of new jobs — because an investment's economic value isn't measured by the number of jobs it creates. The purpose of investing in electricity-generating resources and infrastructure is to ensure that our power supplies are adequate, reliable and affordable. If job creation was the goal, the most valuable energy resources would be the most labor-intensive ones. Subsidy advocates ignore these basic economic realities. And campaign contributors are the loudest voices in many politicians' ears. Eventually, however, reality always wins. Senators would be wise to remember that as they debate the 'Big, Beautiful Bill' in the coming weeks. Jonathan Lesser is a senior fellow with the National Center for Energy Analytics.
Yahoo
2 days ago
- Business
- Yahoo
Waaree Solar Americas Signs 586 MW Module Supply Agreement with Leading U.S. IPP, Secures $176 Million (INR 1500 Cr) Order
MUMBAI, India and BROOKSHIRE, Texas, May 30, 2025 /PRNewswire/ -- Waaree Solar Americas Inc., the wholly owned U.S. subsidiary of Waaree Energies Limited, India's largest solar PV module manufacturer, has announced the signing of a significant 586 MW solar module supply agreement with a leading U.S.-based independent power producer. Valued at USD 176 million (approx. INR 1500 crore), this landmark project represents a major milestone as Waaree continues to expand its strong presence in the US solar market. The modules will be manufactured at Waaree's state-of-the-art facility in Brookshire, Texas, and are scheduled for delivery during FY 2026–27 across four projects. These modules will leverage several domestically produced components, aligning with the Investment Tax Credit (ITC) guidelines for domestic content requirements and reinforcing the resilience and reliability of the U.S. clean energy supply chain amidst evolving trade and energy policies. "This agreement reflects Waaree's unwavering commitment to building a resilient, robust, and technologically advanced clean energy supply chain in the United States," said Sunil Rathi, President, Waaree Solar Americas. "In a landscape marked by shifting trade dynamics and an increasing emphasis on domestic manufacturing, our Brookshire facility stands uniquely equipped to meet market demand with high-quality, U.S.-made modules. This milestone not only underscores global confidence in Waaree's quality and reliability but also bolsters America's energy transition, enhances job creation, and strengthens long-term energy security." He added, "Our collaboration reflects a mutual commitment to advancing America's energy security objectives through a resilient domestic supply chain, supported by Waaree's extensive manufacturing expertise developed over decades in India. We are proud to contribute to our partner's ambitious project pipeline with our high-performance solar modules." This partnership highlights Waaree's strategic positioning as a highly dependable global PV module manufacturer with a dynamic and resilient supply chain strategically positioned to mitigate trade risks and ensure supply continuity. As US energy demand continues to surge, driven notably by advancements in AI infrastructure and industrial growth, Waaree remains dedicated to supporting its clients and partners by delivering scalable, high-quality clean energy solutions. For Further Information, Please Contact :Manasi Patni – manasipatni@ Photo - View original content to download multimedia: SOURCE Waaree Solar Americas Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
3 days ago
- Business
- CNBC
UBS says this solar stock can rally 75% even as U.S. budget bill poses risks to clean energy
Sunrun can surge from here even as a new U.S. budget bill poses a risk to the clean energy sector, according to UBS. Analyst Jon Windham kept his buy rating on the solar company. He did cut his price target to $12 from $17, but that still implies the stock could still gain 75% from Thursday's close. Sunrun shares have plunged nearly 26% this year and more than 52% over the past year, as traders ditch clean energy names under the Trump administration. The Invesco Solar ETF (TAN) has dropped more than 3% in 2025 and 13% in the past six months. The latest headwind for the sector comes after the U.S. House of Representatives on May 22 passed the "One Big Beautiful Bill Act," which proposes to eliminate the 30% Investment Tax Credit by the end of December. The bill has allowed homeowners to reduce their electricity costs by installing solar panels and battery storage systems. "Our lower target multiple reflects the overall intent of the House to seemingly remove all tax credits regarding residential solar and our relatively negative outlook on the Senate's willingness to preserve the credits compared to programs like the 45x manufacturing credit," Windham wrote in a Friday note to clients. RUN 1Y mountain Sunrun stock performance. But according to the analyst, Sunrun could remain resilient in the face of these cuts. If the residential tax credits are fully slashed, he said Sunrun could survive regulatory changes by structuring its Power Purchase Agreement options, getting more state-level policy support and transitioning to end markets such as commercial and industrial and community solar. He also noted that the company has strong assets. "Our estimates are unchanged as there is the potential for revisions in the U.S. Senate and possible that a final bill does not pass," Windham wrote. "We maintain our buy rating ... based on RUN's underlying $2.6bn portfolio of contracted net earning assets. In addition, we see potential upside scenarios beyond the U.S. budget bill." Wall Street remains split on Sunrun. Of the 25 analysts covering the stock, on rates it a strong buy, while 10 rate it a buy and 12 give it a hold, per LSEG.
Time of India
3 days ago
- Business
- Time of India
Waaree inks ₹1,500 crore agreement for 586 MW solar module supply in US
New Delhi: Waaree Solar Americas Inc., a wholly owned subsidiary of Waaree Energies Limited, has signed a $176 million (approximately ₹1,500 crore) solar module supply agreement with a leading US-based independent power producer. The agreement covers the supply of 586 MW of solar PV modules , which will be manufactured at Waaree's facility in Brookshire, Texas. The modules are scheduled for delivery during FY 2026–27 and will be used across four projects. According to the company, the modules will incorporate domestically manufactured components, meeting the domestic content requirements under the Investment Tax Credit (ITC) guidelines in the US. 'This agreement reflects Waaree's unwavering commitment to building a resilient, robust, and technologically advanced clean energy supply chain in the United States,' Sunil Rathi, President, Waaree Solar Americas, said. 'In a landscape marked by shifting trade dynamics and an increasing emphasis on domestic manufacturing, our Brookshire facility stands uniquely equipped to meet market demand with high-quality, U.S.-made modules. This milestone not only underscores global confidence in Waaree's quality and reliability but also bolsters America's energy transition, enhances job creation, and strengthens long-term energy security," he said. He further added, 'Our collaboration reflects a mutual commitment to advancing America's energy security objectives through a resilient domestic supply chain, supported by Waaree's extensive manufacturing expertise developed over decades in India. We are proud to contribute to our partner's ambitious project pipeline with our high-performance solar modules." Waaree Energies is India's largest solar PV module manufacturer and continues to expand its footprint in international markets through such strategic agreements.
Yahoo
4 days ago
- Business
- Yahoo
Jefferies Trims Sunrun Price Target Amid IRA Uncertainty
Jefferies analyst Julian Dumoulin-Smith lowered his price target for Sunrun Inc. (NASDAQ:RUN) from $7 to $6 on May 28, while maintaining a Hold rating on the company's shares. The change coincides with House debates over the Inflation Reduction Act (IRA) amendments and the expectation of additional leniency from the Senate. The crucial question for Sunrun Inc. (NASDAQ:RUN), according to Dumoulin-Smith, is whether the Senate will opt to lift the 2026 deadline for residential leases. The company might be able to extend the Investment Tax Credit runway with a strong safe harbor strategy, the analyst said, if the Senate votes in favor of it. That said, Jefferies advises investors to stay alert for any updates on IRA modifications since there will likely be continuous stock volatility in the near future. Sunrun Inc. (NASDAQ:RUN) is a leading American renewable energy subscription service provider, delivering energy storage and solar for homes at no upfront fees. While we acknowledge the potential of RUN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RUN and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and Disclosure: None. Sign in to access your portfolio
