Trump spoke against clean energy, but he can't stop surging demand - opinion

Soaring electricity demand in the US, falling technology costs, and the extension of federal incentives have made solar and storage the most cost-effective energy solutions. For Israel, a sun-drenched country with world-class technology, this should be a call to action to finally unlock its renewable potential and turn its advantages into a true energy revolution.

However, in practice, economics prevailed, and the Trump administration realized that the surging demand for energy required immediate solutions and a diversified energy mix, reshaping the reality on the ground.

The new budget law, which Trump himself branded the “Big Beautiful Bill,” initially created the impression that the administration had cut back key tax incentives, a central element in financing renewable energy projects in the United States, leading to a decline in renewable energy stocks.

However, a careful reading of the law, along with an IRS update in August, clarified that Trump was playing both sides. He created an image for his political base that he was cutting incentives, but in practice, left developers with significant flexibility by allowing them to secure “safe harbor” through the purchase of designated project equipment by July 4, 2026, granting them four years to complete construction.

In addition, developers of “behind the meter” projects received another significant benefit: projects up to 1.5 MW were exempted from the new guidelines and could continue operating as usual. Perhaps, as a final gesture to his close ally Elon Musk, the new rules did not apply to storage technologies, for which tax incentives remain in effect until 2033, as approved under the Biden administration.

The result was renewed investor confidence, a stable framework for developers, and a broader pipeline of viable projects. The message is clear: renewable energy in the United States is no longer just environmental ideology but an essential part of the energy mix required for continued economic growth.

The US market is projected to grow by 2-3% annually, amounting to roughly 30 GW of new capacity each year. This is not about ideology or affection for renewables; it is about meeting raw electricity demand. The bridge to future technologies, such as small modular nuclear reactors, will take another five to 10 years before reaching commercial scale.

In this reality, producing electricity locally at the point of consumption has shifted from being an advantage to a necessity. Solar systems and storage facilities installed within factories or airports provide customers with operational stability and clear savings of 15-20% in costs. This model is expanding not only among small businesses but also across multinational corporations.

At the same time, there has been a significant drop in solar panel and battery prices over the past year. Combined with the extension of federal incentives, this creates a formula that drives accelerated growth. Automakers, tire manufacturers, and even the Federal Aviation Administration already recognize that the most profitable solution lies in localized renewable energy.

Closer cooperation with regulators that shortens approval processes could enable Israel’s power sector to deliver cleaner, cheaper electricity, with a more efficient and renewable-based energy market. This is even more critical in light of the ongoing war and missile attacks, where dispersed energy production across the country would provide resilience if a strategic facility were hit.

The target of 30% renewable power by 2030 can become a practical reality if policymakers work hand in hand with developers and allow the electricity market to move forward. If Israelis are known for anything, it is entrepreneurship and bold thinking. All that is required now is the opportunity to put these strengths into action.