Trump’s New War On Solar Energy

It has appeared that the Trump Administration’s renewable target was wind power. It has canceled or effectively shut down at least $5 billion in wind projects. Some of these were partially built or in late planning schedules. Solar is also under scrutiny.

Solar’s first problem is the overall Trump objections to renewables as “unreliable”, which oil and coal fall into the reliable column. However, the problem is more complex than this.

Tariffs on steel and copper raise the prices of key components to most solar installations. On a more aggressive basis, Interior Department chair Doug Bergum says he expects to have all federally permitted installations reviewed. Even if it has no direct effect other than causing delays, it makes the solar industry more complex and unpredictable. “Unpredictable” is a word financial underwriters do not like to hear. 

Where Will Money Come From?

The Administration’s “Solar for All” initiative is dormant. It may simply die because it is not funded. In the early stages of the administration’s policy creation, it appears to have been forgotten. 

Perhaps the broadest challenge to solar is Trump’s strong support of coal, nuclear and geothermal. While this does not mean support for solar, it is not an endorsement.

A large number of solar projects need support from large companies or Wall Street. Those who funded wind were burned. That will not happen again.