Opinion: Tariffs threaten renewable energy development and rural economies
By Mallory Tope, policy associate,
Center for Rural Affairs
Thursday, June 5, 2025 — Despite record-high wind and solar generation, the U.S. renewable energy sector faces uncertainty. Tariffs and potential repeals of federal funding are creating roadblocks to the further buildout of energy projects.
Wind, solar, and other renewable energy projects have helped revitalize rural communities by creating jobs, generating new tax revenues, and providing lease payments to landowners.
However, energy projects rely on globally sourced components due to the U.S. supply chain’s inability to meet rising demand. To avoid tariffs, solar developers are stockpiling panels, but the impact is only delayed. Battery storage is critical for grid reliability and faces tariffs of up to 65%.
The rising costs are forcing companies to delay or cancel plans.
For example, the Plum Creek Wind Project in Minnesota was cleared for construction this fall, but the project developer, National Grid Renewables, has pressed pause due to escalating costs tied to tariffs.
The slowdown threatens rural economies by halting the local jobs and long-term positions in operations and maintenance that new construction brings. Tax revenues from energy projects fund vital infrastructure and critical public services like schools, emergency services, and roads. In Iowa’s Howard County, 147 wind turbines account for 14.5% of the county’s total annual tax revenue.
According to the U.S. Department of Agriculture, about 85% of U.S. farm households earned the majority of their income from off-farm sources. Hosting wind turbines or solar panels offers a stable source of income through lease payments, but the additional income is at risk if renewable energy development declines.
Rural economies have grown thanks to renewable energy development, but without continued investment, many communities will not be able to unlock those economic benefits.
Contact your congressional representatives. Tell them to support federal funding for renewable energy development and oppose tariffs that will affect future development in rural communities.
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