Powering Connecticut’s Municipal Future

New Federal Law Alters Renewable Energy Landscape: What It Means for Municipalities

On July 3, 2025, President Donald Trump signed into law the “One Big Beautiful Bill Act” (OBBB or OBBBA), marking a major shift in U.S. energy policy. The legislation reverses or eliminates many renewable energy incentives that were introduced through the Inflation Reduction Act (IRA), significantly altering the outlook for solar and wind development nationwide.

Municipalities — particularly those with sustainability goals or long-term infrastructure plans — may feel the impacts of this new law in several ways. Key tax incentives such as the Investment Tax Credit (ITC) and Production Tax Credit (PTC), which have supported local government renewable projects, now face early phase-outs and tighter eligibility. This change could make new solar or wind installations more costly for towns and cities.

According to analyses by Wood Mackenzie and the Center for American Progress, reduced federal support is expected to curtail investment in clean energy, potentially resulting in higher electricity costs and a return to greater reliance on fossil fuels. Some households could see electric bills rise by over $100 annually. Additionally, emissions and air pollution may increase due to slowed clean energy adoption — issues that local governments often work hard to combat through local climate initiatives.

Despite these federal setbacks, there are still immediate actions municipalities can take to stay on track with their energy goals.

Local Opportunities Remain

State policies, corporate energy commitments, and the continued competitiveness of renewables — thanks to declining installation costs — provide a buffer against federal rollbacks. Many towns also remain eligible for incentives at the state or utility level that can offset costs for clean energy projects.

One emerging opportunity is in Windham County, Connecticut, which is now designated as an Energy Community! This designation allows towns and businesses in the region to receive an additional 10% federal Investment Tax Credit (ITC) for solar projects — bringing the total from 30% to 40%. If the system meets domestic content requirements, it may qualify for another 10% bonus, increasing the total ITC to 50%. These incentives make municipal solar projects in Windham County significantly more cost-effective and financially attractive.

How Titan Energy Can Help

In this shifting policy environment, Titan Energy continues to serve as a partner to municipalities by providing expert guidance, feasibility assessments, and project development support. We help towns navigate incentive eligibility, analyze project value under current conditions, and make informed decisions about energy strategies in the face of policy uncertainty.

While the OBBBA represents a step backward for federal renewable support, municipalities still have tools, resources, and partners to drive local progress. Titan Energy is here to support that effort — today and in the future.