The Big Beautiful Act and Foreign Entity of Concern restrictions are creating new risks for US solar and energy storage, potentially resulting in project delays, eligibility uncertainty and other challenges, say Jesse Pichel and Lev Seleznov of Roth Capital Partners. In this piece, they explore policy shifts impacting the industry and implications for the sector. Overall, the outlook for solar is relatively stable, but growth may slow entering the late 2020s.

The Trump administration has asked a federal court to reject Orsted's request to resume work on the 704-megawatt Revolution Wind project. The administration argues that the Bureau of Ocean Energy Management's stop-work order is lawful under its authority to protect national security and prevent interference with other uses. Orsted says it is facing $25 million in additional costs per week across its Revolution Wind and Sunrise Wind projects.

The California Legislature has passed AB 825, a bill aimed at enhancing grid reliability and creating a regional electricity market in the Western US. The bill, which is awaiting Gov. Gavin Newsom's signature, allows the California Independent System Operator to transition market governance to an independent regional organization, as outlined by the West-Wide Governance Pathways Initiative. The move is expected to boost renewables development and reduce reliance on fossil fuels.

Although major news hubs may paint a different picture, a new Heatmap News poll indicates that Americans don't blame the Biden or Trump administrations for rising power prices. Instead, most pointed a finger at local utilities, state governments and expanding electricity demand. Most Americans also agreed that at least some of the blame should go toward data center growth.

Fusion energy could become a viable source of electricity within eight years, said Energy Secretary Chris Wright. Innovation has accelerated significantly since a Lawrence Livermore National Laboratory breakthrough in 2022 and the space has caught the eye of investors such as Jeff Bezos and Bill Gates. "I believe we will know the commercial pathway to fusion during the Trump administration," said Wright.

The Department of Energy announced $134 million in funding for fusion energy initiatives, including $128 million for the Fusion Innovative Research Engine collaboratives and $6.1 million for the Innovation Network for Fusion Energy. The FIRE collaboratives aim to create a fusion energy innovation ecosystem, while INFUSE focuses on accelerating private-sector fusion development by fostering collaboration between businesses, national labs and universities.

North Carolina, like much of the US, is facing increasing demand for electricity from data centers. Duke Energy has projected a need for nearly 6 gigawatts of additional capacity, prompting regulators to approve a plan for new gas plants and some clean energy investments. The North Carolina Utilities Commission has opened a proceeding to address issues related to data center demand, including the accuracy of projections, cost-sharing for grid upgrades, and the use of carbon-free energy.

Google has chosen Shell Energy Europe to oversee its renewable power supply in the UK, deepening a partnership that leverages Shell's expertise in energy trading and battery storage. Shell will use its expertise to help balance Google's portfolio and ensure reliable access to around-the-clock clean power. The agreement will also "enhance energy stability and contribute to the UK's clean energy transition," said Google's Maud Texier.

Battery energy storage systems are an emerging solutions to help balance surging power demand from data centers, particularly those owned by major tech companies. The US has more than 5,400 operational data centers and the Energy Department expects the industry could use up to 12% of US electrical generation within three years.