Trump's expansion of federal control hits solar developers

Increased oversight by the Interior Department is hampering solar development on private land as well as public, prompting delays that could push up energy costs.

 

September 29 - An order by the U.S. Department of the Interior (DOI) for increased federal oversight of solar and wind projects has created new challenges for clean power developers already facing cuts to tax credits.

 

Issued by Secretary of the Interior Doug Burgum in July, the order expands federal oversight of solar and wind approvals, in line with the Trump administration's efforts to eliminate subsidies and what it sees as "preferential treatment" for these energy sources. The policy strengthens accountability and prevents misuse of taxpayer-funded subsidies, the DOI said.

 

Reviews of approval processes by the Trump administration had already impacted wind power projects but the latest order expands federal scrutiny to solar facilities - many of which include battery storage - as well as associated transmission infrastructure.

 

All decisions, actions, and consultations related to solar and wind facilities will now undergo a three-tiered approval process, culminating at the Office of the Secretary. At least 69 permitting actions, including rights-of-way applications, leases, development plans and environmental impact assessments, will be submitted to this process.

 

“The Department-wide review of wind and solar projects—regardless of whether they are proposed on federal, state or private lands— ensures that there is appropriate oversight when federal resources, permits or consultations are involved,” a DOI spokesperson told Reuters Events.

 

The enhanced environmental review also applies to transmission lines "when they are part of, and necessary for, a wind or solar energy project," the spokesperson said.

 

Solar projects on federal lands in Nevada have stalled since the DOI memo was issued, according to a letter sent by Governor Joe Lombardo to Secretary Burgum in August that requested clarification on the new procedures.

 

Around 80% of Nevada's land is federally managed and there are over 33 GW of proposed solar energy and battery storage projects at various stages of development on federal land or on private lands with linear facilities such as transmission lines crossing federal lands, according to Governor Lombardo's letter.

 

Governor Lombardo's office has held several "productive" discussions with Department officials since the letter, Lombardo’s press secretary Josh Meny told Reuters Events on September 26.

 

“It is clear that the administration is attentive to Nevada’s commitment to facilitating the successful advancement of these projects," Meny said.

 

CHART: US annual power installations by technology

Source: American Clean Power (ACP) Purchase Licensing Rights, opens new tab

 

Arevon is developing 10 GW of large-scale clean power projects that are scheduled to start construction between 2026 and 2028 and 50% of these could be delayed by the DOI's increased scrutiny, Kevin Smith, CEO of Arevon, said.

 

Arevon's projects are largely in the Midwest and Southeast. None of them are located in public lands and most of the potential delays would be related to approvals required for associated transmission lines.

 

“We're reviewing timelines, we're looking at whether or not we should be rerouting to try and avoid any federal issues, if that's even possible,” Smith said.

 

Projects scrutinized

 

Combined with cuts to tax credits in President Trump's Big Beautiful Bill, the tightened permitting process could reduce solar power installations between 2025 to 2030 by 55 GW, to 202 GW, Wood Mackenzie's and SEIA's said in their latest quarterly U.S. Solar Market Insight report.

 

CHART: US solar installation forecast

Source: Wood Mackenzie, September 2025 Purchase Licensing Rights, opens new tab

Most clean energy projects, even on private land, require some federal permits or consultation with the DOI, Smith noted.

 

A private power project with a transmission line crossing a stream will need an Army Corps of Engineers approval. A project located in an area that could impact a species protected under federal laws will require an incidental take permit from the U.S. Fish and Wildlife Service (FWS), for example.

.

Two further orders issued after the DOI's July memo provide insight into the government's intended scrutiny of solar and wind power projects on federal lands, according to Andrea W. Wortzel, an environment and natural resource attorney at Troutman Pepper Locke.

 

Projects undergoing the National Environmental Policy Act (NEPA) review process will now be evaluated based on their capacity density in comparison with other energy sources, according to an order issued in August.

 

In a similar move, the Army Corps of Engineers announced on September 22 that it will consider a project's energy efficiency, the energy generated per acre, in its permitting decisions.

 

These measures disadvantage solar and wind power compared to advanced nuclear projects, for example, which require less land for the same energy output.

 

Public impacted

 

The Trump administration's policies to rein in clean power deployment come despite U.S. goals to expand domestic manufacturing and meet soaring power demand from AI and computing facilities.

 

The increased federal oversight will impact solar power investment and, ultimately, workers in the sector, Ben Norris, VP of Regulatory Affairs at the Solar Energy Industries Association (SEIA), warned.

 

“If the industry is going to continue to invest the billions of dollars on solar projects that it has in just the last few years, the administration has to alter its policies,” he told Reuters Events. [But the administration’s policy is to save billions of dollars that would otherwise subsidize intermittent unreliable energy – and to discourage investment in it --- because that investment is not in the national interest.]

 

Any adaptation or redesign of solar projects in order to avoid longer approval processes will likely cause delays and increase costs, which would ultimately lead to higher electricity rates, Norris said. [No. It won’t lead to higher electricity prices. It will, on the contrary, save taxpayers a lot of money that would otherwise be doled out in solar subsidies.]

 

"We think the Interior Department immediately needs to rethink some of these policies or else they're going to have to explain to the American voters next year how they're responsible for increased electricity prices." [Bring it on. We’ll see who has the better argument.]

 

Trump's expansion of federal control hits solar developers | Reuters