A new analysis from the think tank Energy Innovation warned repealing clean energy tax credits could significantly increase energy costs in Michigan and nationwide.

According to the report, eliminating the credits would add $140 per year to household costs in the Great Lakes State and increase household energy bills nationwide by billions annually over the next five years.

Dan O'Brien, senior modeling analyst at Energy Innovation, said the proposed budget bill in Congress could eliminate two key tax credits to fund nationwide tax cuts, potentially driving up energy prices.

"In the next five years, we would see somewhere around $6 billion of cost increases for households across the country," O'Brien reported. "They're going to see increases in the near term of something like $50 in the long term, $300 to $500 in certain states."

Proponents of the cuts maintain they are vital for lowering taxes, stimulating growth, balancing the budget, and reducing reliance on the government. They also contended the reductions will curb wasteful spending and help lower the deficit and inflation.

O'Brien noted more than 90% of wind turbines in the Midwest are on farmland, supporting farmers even during droughts. He highlighted Michigan's industrial and manufacturing sectors, which have high electricity demand and increase the need for renewable energy.

"If you don't have sources like solar batteries, wind on the grid that can push down electricity prices and that are supported by incentives, like the tax credits, you're going to see business costs go up," O'Brien contended.

He added the fate of these tax credits is uncertain, hinging on the House Ways and Means Committee's decisions to cut spending and reduce the federal budget.

A bill to promote virtual power plants goes before the California State Assembly Utilities and Energy Committee next week. Virtual power plants are networks of home energy devices like smart thermostats, stationary home batteries, and electric vehicles that can be used as power sources during peak hours, which lowers the amount of power that electric utilities have to provide.

Assemblymember John Harabedian, D-Pasadena, said virtual power plants would reduce the need to build costly transmission lines and polluting natural gas plants.

"This bill, really in utilizing virtual power plants, is about affordability and reliability and sustainability. It's a cost-saving measure, and it's also an easier way to meet demand throughout the state during peak hours," he explained.

At least 300,000 Californians are already getting paid as part of the Demand Side Grid Support program, agreement that allows the utilities to pull power stored in their smart devices' batteries to power their home.

Harabedian said Assembly Bill 740 would direct the California Energy Commission to make plans to expand the use of virtual power plants, following the success of a pilot program.

"It has prevented blackouts. It has delivered over 500 megawatts of capacity, about the same as three gas peaker plants, and has saved millions of dollars already," he continued. "So, the pilot program has been undeniably successful. We just need to scale it."

A recent study found that virtual power plants could save California residents $750 million per year in traditional power system costs. Some are concerned that utilities may earn less money if the programs expand. So far, there is no registered opposition to the bill.


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While Nevada ranks among the top states for electric vehicle sales, one local business says it is seeing less demand for charging stations, and has to make some tough decisions as the Trump administration cuts climate and infrastructure investments. Allegiant Electric LLC in Las Vegas installs residential and commercial EV charging stations.

Andrea Vigil, chief operating officer of Allegiant Electric, said they were ramping up for a project for the U.S. Postal Service - but were notified it had been shelved. It's just one of the setbacks they've faced as Trump rescinds unspent Inflation Reduction Act funds. Vigil said not only will the clean energy economy take a hit, so will businesses like hers.

"We've already had to reduce some of our employees just because of, you know, the fact that there has been a decline in the installation requests on the EV chargers," she explained. "That is actually a big part of our business."

EVs accounted for about 8% of new car sales in the U.S. last year, partly thanks to Biden-era tax incentives and policies that sparked buyers' interest. Automakers had also prioritized EV production. But with Trump in the White House, Vigil says she and her husband will have to pivot on their business strategies.

Vigil added that Trump's tariffs have also been difficult to adapt to, and they've already noticed their material costs skyrocket.

"A lot of the material on the electrical side comes from Mexico and it needs to cross over, back and forth, eight times just before it's able to get into the United States," she continued. "We just bought a roll of wire, it was just a fourth of what we normally get - and the price has nearly tripled."

Paul Bordenkircher, president of Nevada EV Association, said due to the president's relationship with Elon Musk, many folks in the market for an EV are steering away from Tesla. He says other brands, like Hyundai and Kia, are profiting.

"I see other brands picking up some of the uptake with, unfortunately, Tesla's decline in sales. Because people are discovering that yes, there are other options, that EVs don't just exist from the Tesla brand," he contended.

As Illinois forges ahead in the clean energy space, legislators and advocates are pushing for what would be the third major climate bill passed in less than a decade.

Supporters of the Clean and Reliable Grid Affordability Act say it's crucial as the state's power grid struggles to keep up with increased demand, mostly from large data centers.

Previous climate legislation helped launch energy equity and green jobs programs that have especially benefited smaller and rural communities.

Ethan Minich, site manager for The Camp Grove Wind Farm, has worked in wind energy since 2011. He said more educational opportunities have also helped fuel the boom.

"The technical training has certainly increased a lot," said Minich. "It went from - it was really just on the job training with some very specialized schooling for it - to now a lot of companies even have their own training programs to train people."

Clean energy jobs have grown eight times faster than the state's overall economy.

Three times as many residents now work in clean energy-related fields than the number of lawyers, web developers, and real estate agents combined.

Illinois leads the Midwest with about 25,000 jobs in the renewable energy space. Minich said the idea of contributing to the local economy attracted him.

He said after dropping out of college, he took his first job in wind energy as a way to make good money - and gained a passion for the industry.

Now, as a site manager, Minich said he strives to offer that same opportunity to others.

"I really look for those local guys," said Minich. "I can invest in those local guys, invest in the local community, and build a solid team of people that will have some longevity in the career."

Part of the state's Climate and Equitable Jobs Act is the goal of achieving 100% clean energy by 2050.

Its backers say it would help provide a more clean, reliable and affordable electric grid in Illinois, to help meet that goal.




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