In a blow to the climate and American consumers alike, the budget bill enacted by the Trump Administration and Republican Congress this summer gutted federal tax credits for wind and solar. Experts estimate that, over the next decade, the loss of renewable energy tax credits will dramatically reduce the renewable energy deployment in the US and increase electricity prices by as much as 74%. Fortunately, the bill left a short window for projects to take advantage of the existing federal tax credits, and the Public Service Department and Vermont utilities have been working proactively with the renewable sector to maximize the number of renewable projects that can take advantage of this window.
Recently, the Vermont Public Service Department joined with its counterparts in Maine, Massachusetts, and Connecticut in a successful solicitation for new renewable projects capable of meeting the tight timeframe to qualify for the expiring tax credits. (To qualify, projects must either start construction before 7/4/2026 or complete construction by the end of 2027.) The results of the solicitation, announced on the 18th, are that 170 MW of new solar generation will be built in New England.
Maine, Massachusetts, and Connecticut will contract for power directly with the selected projects, while in Vermont, the Public Service Department facilitated Green Mountain Power’s participation in the solicitation, and Green Mountain Power (potentially along with other Vermont utilities) is negotiating the power purchase agreements.
The Public Service Department’s decision to collaborate with peers across New England to proactively maximize the benefits of expiring federal tax incentives means that more renewable energy will be built more quickly and at a lower cost. It is a true win-win.