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Fast Company
12 minutes ago
- Business
- Fast Company
Renewable energy is a lifeline for many U.S. farms, but Trump's cuts to wind and solar are putting that at risk
Drive through the plains of Iowa or Kansas and you'll see more than rows of corn, wheat and soybeans. You'll also see towering wind turbines spinning above fields and solar panels shining in the sun on barns and machine sheds. For many farmers, these are lifelines. Renewable energy provides steady income and affordable power, helping farms stay viable when crop prices fall or drought strikes. But some of that opportunity is now at risk as the Trump administration cuts federal support for renewable energy. Wind power brings steady income for farms Wind energy is a significant economic driver in rural America. In Iowa, for example, over 60% of the state's electricity came from wind energy in 2024, and the state is a hub for wind turbine manufacturing and maintenance jobs. For landowners, wind turbines often mean stable lease payments. Those historically were around US$3,000 to $5,000 per turbine per year, with some modern agreements $5,000 to $10,000 annually, secured through 20- to 30-year contracts. Nationwide, wind and solar projects contribute about $3.5 billion annually in combined lease payments and state and local taxes, more than a third of it going directly to rural landowners. These figures are backed by long-term contracts and multibillion‑dollar annual contributions, reinforcing the economic value that turbines bring to rural landowners and communities. Wind farms also contribute to local tax revenues that help fund rural schools, roads and emergency services. In counties across Texas, wind energy has become one of the most significant contributors to local property tax bases, stabilizing community budgets and helping pay for public services as agricultural commodity revenues fluctuate. In Oldham County in northwest Texas, for example, clean energy projects provided 22% of total county revenues in 2021. In several other rural counties, wind farms rank among the top 10 property taxpayers, contributing between 38% and 69% of tax revenue. The construction and operation of these projects also bring local jobs in trucking, concrete work and electrical services, boosting small-town businesses. The U.S. wind industry supports over 300,000 U.S. jobs across construction, manufacturing, operations and other roles connected to the industry, according to the American Clean Power Association. Renewable energy has been widely expected to continue to grow along with rising energy demand. In 2024, 93% of all new electricity generating capacity was wind, solar or energy storage, and the U.S. Energy Information Administration expected a similar percentage in 2025 as of June. Solar can cut power costs on the farm Solar energy is also boosting farm finances. Farmers use rooftop panels on barns and ground-mounted systems to power irrigation pumps, grain dryers and cold storage facilities, cutting their power costs. Some farmers have adopted agrivoltaics — dual-use systems that grow crops beneath solar panels. The panels provide shade, helping conserve water, while creating a second income path. These projects often cultivate pollinator-friendly plants, vegetables such as lettuce and spinach, or even grasses for grazing sheep, making the land productive for both food and energy. Federal grants and tax credits that were significantly expanded under the 2022 Inflation Reduction Act helped make the upfront costs of solar installations affordable. However, the federal spending bill signed by President Donald Trump on July 4, 2025, rolled back many clean energy incentives. It phases down tax credits for distributed solar projects, particularly those under 1 megawatt, which include many farm‑scale installations, and sunsets them entirely by 2028. It also eliminates bonus credits that previously supported rural and low‑income areas. Without these credits, the upfront cost of solar power could be out of reach for some farmers, leaving them paying higher energy costs. At a 2024 conference organized by the Institute of Sustainability, Energy and Environment at the University of Illinois Urbana-Champaign, where I work as a research economist, farmers emphasized the importance of tax credits and other economic incentives to offset the upfront cost of solar power systems. What's being lost The cuts to federal incentives include terminating the Production Tax Credit for new projects placed in service after Dec. 31, 2027, unless construction begins by July 4, 2026, and is completed within a tight time frame. The tax credit pays eligible wind and solar facilities approximately 2.75 cents per kilowatt-hour over 10 years, effectively lowering the cost of renewable energy generation. Ending that tax credit will likely increase the cost of production, potentially leading to higher electricity prices for consumers and fewer new projects coming online. The changes also accelerate the phase‑out of wind power tax credits. Projects must now begin construction by July 4, 2026, or be in service before the end of 2027 to qualify for any credit. Meanwhile, the Investment Tax Credit, which covers 30% of installed cost for solar and other renewables, faces similar limits: Projects must begin by July 4, 2026, and be completed by the end of 2027 to claim the credits. The bill also cuts bonuses for domestic components and installations in rural or low‑income locations. These adjustments could slow new renewable energy development, particularly smaller projects that directly benefit rural communities. While many existing clean energy agreements will remain in place for now, the rollback of federal incentives threatens future projects and could limit new income streams. It also affects manufacturing and jobs in those industries, which some rural communities rely on. Renewable energy also powers rural economies Renewable energy benefits entire communities, not just individual farmers. Wind and solar projects contribute millions of dollars in tax revenue. For example, in Howard County, Iowa, wind turbines generated $2.7 million in property tax revenue in 2024, accounting for 14.5% of the county's total budget and helping fund rural schools, public safety and road improvements. In some rural counties, clean energy is the largest new source of economic activity, helping stabilize local economies otherwise reliant on agriculture's unpredictable income streams. These projects also support rural manufacturing – such as Iowa turbine blade factories like TPI Composites, which just reopened its plant in Newton, and Siemens Gamesa in Fort Madison, which supply blades for GE and Siemens turbines. The tax benefits in the 2022 Inflation Reduction Act helped boost those industries – and the jobs and local tax revenue they bring in. On the solar side, rural companies like APA Solar Racking, based in Ohio, manufacture steel racking systems for utility-scale solar farms across the Midwest. An example of how renewable energy has helped boost farm incomes and keep farmers on their land. As rural America faces economic uncertainty and climate pressures, I believe homegrown renewable energy offers a practical path forward. Wind and solar aren't just fueling the grid; they're helping keep farms and rural towns alive. Paul Mwebaze is a eesearch Economist at the Institute for Sustainability, Energy and Environment at the University of Illinois at Urbana-Champaign. The early-rate deadline for Fast Company's Most Innovative Companies Awards is Friday, September 5, at 11:59 p.m. PT. Apply today.
Yahoo
an hour ago
- Business
- Yahoo
Trump Mounts New Attack Against Wind Projects on Federal Land
(Bloomberg) -- The Trump administration is considering halting all wind development on federal lands and in federal waters as the president expands his campaign against the renewable energy source he's long criticized. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boston's Dumpsters Overflow as Trash-Strike Summer Drags On Interior Secretary Doug Burgum on Tuesday ordered a comprehensive review of the agency's approval process for wind projects, including right-of-way authorizations, environmental analysis and wildlife permits. The order, which Burgum said aims to end preferential treatment for wind and solar, is sure to further spook renewables investors and developers already reeling from the administration's attack on clean energy. President Donald Trump, who was in Scotland Tuesday to open a second golf course at his sprawling estate in the eastern part of the country, criticized the UK's support for wind power and decried turbines as overly expensive eyesores. 'Windmills are a disgrace,' he said earlier in the day. 'They hurt everything they touch. They're ugly. They're very inefficient. It's the most expensive form of energy there is.' Trump, who fought against a wind project within view of his first golf course in Aberdeen, Scotland, indefinitely halted the sale of new offshore wind leases on his first day in office and paused permitting of all wind projects on federal lands and waters. More recently, the Interior Department ordered that all solar and wind projects on federal lands required Burgum's sign-off, a move that threatens to mire their approval process in red tape. In April, Burgum halted work on Equinor ASA's $5 billion Empire Wind farm off the coast of New York, but then reversed the decision a month later after the administration reached a deal with New York Governor Kathy Hochul to open the way for new gas pipelines to be built in the state. Torgrim Reitan, Equinor's chief financial officer, said in an interview last month that further investments in US offshore wind are likely off the table. Wind power backers criticized the latest move by the Interior Department, with the American Clean Power Association saying it amounts to 'a confusing mix of unprecedented requirements on wind projects.' 'On its current course, the Interior department will block electricity from the grid resulting in higher prices, lost jobs, and decreased system reliability,' Jason Grumet, the trade group's chief executive officer, said in a statement. 'The proposed federal interference with private economic activity is unprecedented and creates a troubling challenge for critical infrastructure investment of any kind.' --With assistance from Jennifer A. Dlouhy and Skylar Woodhouse. (Adds comment from trade group in last two paragraphs.) It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Burning Man Is Burning Through Cash Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Russia Builds a New Web Around Kremlin's Handpicked Super App ©2025 Bloomberg L.P.
Reuters
4 hours ago
- Business
- Reuters
Japan designates two Hokkaido sites for offshore wind auctions
TOKYO, July 30 (Reuters) - Japan's industry and land ministers on Wednesday designated Matsumae and Hiyama, areas off the northern island of Hokkaido, as promotion zones for upcoming offshore wind power auctions, aiming to bolster the country's renewable energy goals. The government will develop guidelines for the use of the zones and launch a public tender to choose operators for energy projects, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) said in a joint statement. However, no timeline for the next auction was provided. Japan aims to have 45 gigawatts of offshore wind capacity by 2040, which is essential to cutting the country's reliance on imported fossil fuels for power generation, reducing its carbon dioxide (CO2) emissions and bolstering national security. But progress has stalled following three major rounds of auctions. Trading house Mitsubishi Corp (8058.T), opens new tab, the winner in the government's first major auction in 2021, cautioned in February that surging costs had forced it to review its plans. Japan is likely to sweeten terms for developers to build a massive offshore wind farm sector, industry insiders say, as it looks to put its energy ambitions back on track against a worldwide slump of projects hit by soaring costs and delays.
Yahoo
4 hours ago
- Business
- Yahoo
Trump Mounts New Attack Against Wind Projects on Federal Land
(Bloomberg) — The Trump administration is considering halting all wind development on federal lands and in federal waters as the president expands his campaign against the renewable energy source he's long criticized. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boston's Dumpsters Overflow as Trash-Strike Summer Drags On Interior Secretary Doug Burgum on Tuesday ordered a comprehensive review of the agency's approval process for wind projects, including right-of-way authorizations, environmental analysis and wildlife permits. The order, which Burgum said aims to end preferential treatment for wind and solar, is sure to further spook renewables investors and developers already reeling from the administration's attack on clean energy. President Donald Trump, who was in Scotland Tuesday to open a second golf course at his sprawling estate in the eastern part of the country, criticized the UK's support for wind power and decried turbines as overly expensive eyesores. 'Windmills are a disgrace,' he said earlier in the day. 'They hurt everything they touch. They're ugly. They're very inefficient. It's the most expensive form of energy there is.' Trump, who fought against a wind project within view of his first golf course in Aberdeen, Scotland, indefinitely halted the sale of new offshore wind leases on his first day in office and paused permitting of all wind projects on federal lands and waters. More recently, the Interior Department ordered that all solar and wind projects on federal lands required Burgum's sign-off, a move that threatens to mire their approval process in red tape. In April, Burgum halted work on Equinor ASA's (EQNR) $5 billion Empire Wind farm off the coast of New York, but then reversed the decision a month later after the administration reached a deal with New York Governor Kathy Hochul to open the way for new gas pipelines to be built in the state. Torgrim Reitan, Equinor's chief financial officer, said in an interview last month that further investments in US offshore wind are likely off the table. —With assistance from Jennifer A. Dlouhy and Skylar Woodhouse. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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
Reuters
a day ago
- Business
- Reuters
Australia boosts underwriting scheme for renewables to meet clean energy target
SYDNEY, July 29 (Reuters) - Australia will expand the volume of solar and wind projects it underwrites in the race to stabilise an ageing power grid and hit a target of 82% renewable energy generation by 2030, the energy minister said on Tuesday. Energy Minister Chris Bowen said the Capacity Investment Scheme, the government's flagship program to boost private investment in clean energy projects, would be expanded by 25%. That will help underwrite an additional 8 gigawatts of generation and storage projects, taking the scheme's total coverage to 40 GW. "As our ageing coal-fired power stations only become more expensive and more unreliable we need new generation now," Bowen told the Investor Group on Climate Change. "Our energy grid's transition remains urgent," he added in an excerpt of a speech released to media. Analysts project Australia will fall far short of its goal of 82% renewable energy generation by 2030, thanks to inadequate investment and grid connection delays. Under the scheme, the government calls for competitive tenders and agrees floor and ceiling limits on project revenue, paying the difference if it falls below the floor, while sharing in profits if the ceiling is exceeded. The six tender rounds held since the scheme's 2022 launch were "consistently and massively" oversubscribed, said Bowen, who is also the minister for climate change. The declining costs of batteries and solar power gave the government an opportunity to "supercharge" the transition to renewable energy, he said. Underwriting an additional 5 GW of dispatchable capacity, such as batteries, is expected to support investment of A$21 billion ($13.7 billion). A further 3 GW of wind and solar projects is expected to help to power an additional 1 million households. ($1=1.5333 Australian dollars)
