Annual peak electricity demand in the U.S. is expected to increase 30% over the next decade, and a wide variety of resources is needed to support that and the associated economic growth; renewables and storage are ready now.
A new economic analysis from The Brattle Group, commissioned by ConservAmerica, provides a stark warning: eliminating federal clean energy tax credits would drive up electricity costs, stall economic growth, and eliminate millions of jobs across the U.S.
At a time when electricity demand is surging—driven by AI data centers, manufacturing reshoring, and industrial electrification—policymakers should be focused on accelerating investment in power infrastructure, not pulling the plug on the nation’s most affordable and rapidly deployable energy sources.
Download the Analysis: A Wide Array of Resources is Needed to Meet Growing U.S. Energy Demand
America’s Energy Demand is Booming
Over the next decade, U.S. electricity demand is projected to increase by 30%, with peak demand rising even faster—five times the rate of the last decade. By 2035, the U.S. will need 50% more annual electricity generation than it does today. Meeting this demand reliably and affordably requires an all-of-the-above strategy, but the report makes one thing clear: solar, wind, and storage are ready now and can be built far faster than new fossil fuel or nuclear power plants.
The report highlights that nearly 2,000 GW of wind, solar, and storage projects are in the transmission queue today. While not all of them will be built, these resources represent the best option for rapidly scaling up affordable, domestic electricity supply.
The High Price of Losing Clean Energy Tax Credits
The Brattle analysis finds that removing the Clean Electricity Production Tax Credit (PTC) and Investment Tax Credit (ITC) would have devastating economic consequences:
🔺 Higher Electricity Bills – Eliminating clean energy incentives would increase power system costs by 14%, translating into higher bills for every American household. By 2035, residential electric bills would rise by an average of $83 per year, with some states seeing increases as high as $152 per year.
❌ Slashed Investment in Clean Energy – Solar and wind deployment through 2035 would be cut by half, resulting in a $520 billion drop in investment. Without these cost-effective resources, electricity customers would be forced to pay more for power from other sources, or worse, face reliability risks due to supply shortfalls.
📉 Slower Economic Growth & Job Losses – The U.S. economy would take a $820 billion hit, with 3.8 million job-years lost as businesses face higher electricity costs and clean energy projects disappear—especially in rural communities, where the majority of these projects are being developed.
A Policy Choice with Major Consequences
The report makes one thing abundantly clear: removing clean energy tax credits is a step backward. These incentives have been instrumental in making wind and solar the most affordable sources of new electricity generation. Without them, the U.S. will be forced to rely on more expensive, slower-to-build alternatives—raising costs for consumers and businesses while stalling economic growth.
With demand for electricity skyrocketing, now is not the time to roll back support for clean energy. Instead, we should be removing barriers to new renewable energy development, expanding transmission infrastructure, and ensuring that the U.S. remains a global leader in energy innovation.
The stakes are clear: if we want affordable, reliable power for the future, clean energy must remain a policy priority.