GOP tax bill will raise home energy costs in the next decade, study says

GOP tax bill will raise home energy costs in the next decade, study says

By Lena
Lena

GOP Bill Scales Back Clean Energy Support

GOP Bill Scales Back Clean Energy Support (image credits: pixabay)
GOP Bill Scales Back Clean Energy Support (image credits: pixabay)

A new Republican tax and spending law phases out credits for wind, solar, and electric vehicles. These incentives had lowered costs for renewable projects and made clean energy competitive with fossil fuels. With these tax credits ending, building new clean energy systems is likely to get pricier, putting upward pressure on household energy costs.

Households Face Steep Cost Increases

Households Face Steep Cost Increases (image credits: pixabay)
Households Face Steep Cost Increases (image credits: pixabay)

As a result of the tax credit rollbacks, families across the country are expected to see bigger utility bills in the years ahead. Projections show that by 2035, homes in Missouri could pay around $640 more per year, and Kentucky families about $630 extra. This is largely because those states will now lean more on fossil fuels, which cost more than the wind and solar they could have added.

Red States Hit Hardest, Blue States Less So

Red States Hit Hardest, Blue States Less So (image credits: pixabay)
Red States Hit Hardest, Blue States Less So (image credits: pixabay)

States that had the most to gain from Biden-era energy tax credits—like Oklahoma and South Carolina—are projected to experience some of the highest rate hikes, with Oklahoma’s household energy costs rising by 13%. In contrast, states that continue to grow their clean energy capacity will see smaller price increases, since their reliance on natural gas and coal is lower.

Economic and Environmental Ripple Effects

Economic and Environmental Ripple Effects (image credits: pixabay)
Economic and Environmental Ripple Effects (image credits: pixabay)

The loss of tax credits isn’t just about higher bills. It could also slow job growth in renewables, push up emissions, and make meeting climate targets tougher. With more fossil fuels in the mix and fewer clean energy projects breaking ground, both the economy and the environment could feel the impact for years.

Growing Demand Adds to Pressure

Growing Demand Adds to Pressure (image credits: flickr)
Growing Demand Adds to Pressure (image credits: flickr)

With electricity demand rising due to expanding data centers and more electric vehicles and appliances, the timing of these changes is tough for consumers. Experts warn that energy bills are likely to keep rising, especially as the cost of natural gas goes up and there’s less support for wind and solar. Households may find it harder to keep up as prices outpace inflation and clean energy investments slow.

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