Trump agenda puts renewable energy storage at risk

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As the US moves toward a cleaner energy future, a new front has emerged in the fight over how that transition is shaped. Allies of former President Donald Trump have turned their attention to renewable energy storage, focusing on the battery systems that underpin the nation’s capacity to move away from fossil fuels.

These systems are not the most visible part of the energy transition. Unlike wind turbines or solar panels, they sit quietly behind the scenes, balancing supply and demand and ensuring energy reliability when the sun does not shine or the wind does not blow. But their role is central, and the policy changes now unfolding could significantly alter the pace of their growth.

Rolling back the rules

Since returning to office in January, Trump’s energy team has begun unwinding a series of Department of Energy rules designed to encourage the adoption of battery storage. This includes the reversal of efficiency standards for battery chargers introduced under the Obama administration and a broader regulatory review of federal programs tied to energy storage.

The administration says these steps are part of a wider push to reduce government intervention in energy markets. Officials argue that regulatory overreach has distorted competition and that domestic energy production, including fossil fuels, must remain central to US power generation.

Proposals under review would tighten requirements on domestic sourcing for battery components, potentially limiting access to clean energy tax credits under the Inflation Reduction Act. Other programs that support storage innovation and grid modernization may also face budget cuts or be restructured to prioritize fossil fuel reliability.

Market momentum meets political resistance

The timing of this policy shift runs counter to market trends. The energy storage industry in the US has grown rapidly in recent years. Storage installations jumped by over 500 percent between 2020 and 2024, and prices for lithium-ion battery packs have continued to decline.

Grid operators in states such as California and Texas have integrated storage to manage peak demand and reduce blackouts. Industry groups argue that slowing this momentum could risk the reliability gains achieved over the past decade.

“Energy storage is not theoretical. It is operational, it is competitive, and it is critical,” said Abigail Ross Hopper, president of the Solar Energy Industries Association. She added that recent federal moves create uncertainty at a time when investment needs to accelerate, not slow down.

States and industry push back

In response to federal actions, several states have taken steps to insulate their storage policies. California and New York are expanding incentive programs, while Illinois is proposing legislation to maintain grid investment targets. A bipartisan group of governors from the Northeast has urged the Department of Energy to retain key modernization plans.

Legal opposition is building as well. Environmental organizations have begun preparing challenges under the Administrative Procedure Act, arguing that the rollbacks lack sufficient justification and will harm public health by prolonging fossil fuel dependence.

Some industry leaders are recalibrating. Utility companies are reassessing project timelines, and investors are beginning to question federal backing for large-scale storage deployments.

A shift with long-term impact

Whether the new policies endure or are eventually overturned, the current direction signals a break from the clean energy emphasis of recent years. Supporters say the new approach restores balance and discipline to energy spending. Critics argue it puts short-term politics ahead of long-term resilience.

What remains clear is that renewable energy storage is no longer a quiet part of the energy transition. It is now a political flashpoint, with consequences for how the US meets both its economic and environmental goals.

Sources

NY Times