Green energy gold rush goes bust in Nevada: Developers scramble for exit as subsidies disappear

Trump’s market-based approach creates reality check for developers

By Brittany Sheehan  

Nevada News and Views

Picture this: You’re a business owner who signed up for a program because the government promised you big tax breaks. Then the rules change. Suddenly, those tax breaks are disappearing and new red tape makes your project much harder to finish. What do you do?

That’s exactly what’s happening to solar and wind companies in Nevada right now. And it shows why government picking winners and losers in the energy market was a bad idea from the start.

The Bailout Request

On July 28, NV Energy went to the Federal Energy Regulatory Commission with hat in hand. The utility asked for a special waiver to open a 60-day window where renewable energy developers could walk away from their contracts without paying withdrawal fees.

The Berkshire Hathaway-owned company told regulators: “The purpose of this waiver request is thus both to clear the queue to the extent possible and avoid unneeded disputes, by providing a benefit to those willing to leave the queue,”

Translation: We need an escape hatch because a lot of these projects don’t work anymore.

Why the sudden panic? President Trump’s “One Big Beautiful Bill” ended the massive taxpayer subsidies that made these projects profitable in the first place. The law signed on July 4 phases out clean energy tax credits, with projects needing to start construction within a year or be operational by 2027 to qualify.

NV Energy was brutally honest about the math, writing: “The more interconnection requests that can be withdrawn and more interconnection agreements that can be terminated, the better off developers with offtake customers and financing will be.”

Nearly 80 percent of NV Energy’s project pipeline is wind and solar. That’s a lot of developers who might be in trouble.

Government Red Tape Piles On

But the tax credit problem isn’t the only headache. The Interior Department issued a memo in July requiring the Secretary himself to personally review every single decision about solar and wind projects on federal land. Every permit. Every consultation. Every piece of paperwork.

Nevada’s Republican Governor Joe Lombardo says this has “frozen” the state’s solar industry. He’s worried about jobs and economic growth, especially since Nevada needs more power for data centers and mining.

Here’s the kicker: The federal government controls 67 percent of Nevada’s land through the Bureau of Land Management. When Washington decides to micromanage, it really impacts what happens on the ground.

Why This Matters to Conservatives

This whole mess proves several things conservatives have been saying for years.

First, government subsidies distort markets. When Washington picks winners with taxpayer money, it creates artificial demand. Companies make business plans based on political promises instead of real economics. When those promises change, the whole house of cards can fall down.

Second, federal control over state land creates problems. Nevada can’t develop its own energy resources because bureaucrats in Washington control most of the state. That’s not how federalism is supposed to work.

Third, when government gets too involved in the economy, it creates uncertainty. Businesses can’t plan properly when rules keep changing based on who’s in charge in Washington.

The Other Side of the Story

Clean energy supporters argue these projects create jobs and help with energy independence. They say the new timeline is “nearly impossible” and will hurt the renewable energy industry.

Environmental groups worry about climate change and want more clean energy development. Some business leaders say reliable energy is needed for growing industries like data centers.

Even some Republicans, like Governor Lombardo, want these projects to move forward for economic reasons.

What Happens Next

NV Energy has 49 projects totaling about 17,610 megawatts in its pipeline. Many of these might get cancelled if developers can’t make the numbers work without subsidies.

The Solar Energy Industries Association supports NV Energy’s request. They want developers to exit quickly so viable projects can move forward without getting stuck behind dead ones.

This could be a preview of what happens nationwide as the Trump administration phases out renewable subsidies and increases oversight of federal land use.

What Conservatives Can Do

The good news is that market forces are finally working. Projects that can’t survive without taxpayer handouts shouldn’t be built anyway. The private sector is better at picking energy sources that actually work.

If Nevada needs more power, Nevada should decide how to get it. Not Washington bureaucrats.

The real solution isn’t better subsidies or faster permits. It’s getting government out of the energy business altogether. Let companies compete on cost and reliability instead of political connections.

When markets work freely, consumers get cheaper energy and taxpayers don’t foot the bill for politician’s pet projects. That’s a win-win for everyone except the lobbyists.

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Brittany Sheehan is a Las Vegas-based mother, policy advocate and grassroots leader. She is active in local politics, successful in campaign work and passionate about liberty.