One year into Donald Trump's second presidency, his administration has undermined clean energy initiatives, including gutting the Inflation Reduction Act's incentives. However, experts highlight that falling renewable prices and surging electricity demand are propelling the shift to clean energy despite federal obstacles. States and cities continue aggressive emission-reduction efforts, creating tension between policy and economic realities.
A year after Donald Trump began his second term, his administration has actively worked to reverse climate progress achieved under Joe Biden. Efforts included boosting fossil fuels over renewables, blocking state emission reductions and climate adaptation, and pausing wind projects amid rising electricity needs. In July 2025, the White House succeeded in eliminating clean-tech incentives from the Inflation Reduction Act, the U.S.'s most ambitious climate legislation to date.
Experts acknowledge these actions have hindered national climate efforts. 'A lot of this will have mounting consequences in the time ahead,' said Julie McNamara, associate policy director at the Union of Concerned Scientists. She emphasized that renewables remain the logical choice for utilities due to their economic advantages, though federal policies make adoption 'harder than it should be, costlier than it should be, and slower than it should be.'
Market dynamics are countering these setbacks. Over the past decade, onshore wind prices fell 70 percent, solar panels 90 percent, and batteries even more. Texas, the top oil-producing state, leads in renewable generation, producing nearly double that of California because it proves cheaper and more reliable for the grid. Despite Trump's pause on five offshore wind projects, federal judges this week ordered restarts off Rhode Island and New York. McNamara called the administration's approach 'a real and true scandal,' noting its coordinated discrimination against wind and solar across agencies.
State-level progress persists. California added nearly 70 percent more battery storage in 2024 and generated 4.4 percent more renewable electricity. 'The fact that renewables tend to be more cost-effective solutions is something that’s really going to hopefully promote their development moving forward,' said Sarah Gleeson of Project Drawdown. Growing demand, especially from data centers, strains the grid, leading to delayed coal plant retirements and a 2.4 percent rise in U.S. greenhouse gas emissions in 2025—largely due to data centers and colder weather, though policies may worsen future increases.
Renewables are filling the gap: Solar generation grew 27 percent in 2025, covering 61 percent of consumption increases, per Ember's Thursday report. In regions like Florida, the Southwest, and California, solar met or exceeded demand growth. Globally, wind and solar are surpassing additional electricity needs. 'We’ve hit these economic tipping points where solar is just simply the cheapest new form of generating more electricity,' said Ember's Nicolas Fulghum.
Subnational actions bolster the transition. Maine exceeded its 100,000 heat pump installation goal in 2023 and offers up to $9,000 in incentives as federal support fades. Experts argue states and cities are advancing too rapidly for federal interference to halt. 'We have seen numerous states step up across the country and reiterate that they are still committed to that long-term view,' McNamara noted. 'It is undeniable that a competitive economy is a clean economy going forward.'
