Renewable Energy Projects in New York State Stalled by Trump-Era Tariffs

More than two dozen renewable energy projects in New York State, representing enough power for over 2 million households, are currently stalled due to increased construction costs stemming from tariffs imposed during the Trump administration. While fully permitted and ready for construction, these projects have not broken ground as developers grapple with financial viability.

Tariff Impact on Project Costs

According to the Alliance for Clean Energy New York (ACE NY), a nonprofit promoting renewable power, tariffs enacted on materials like steel from Canada, wind turbine parts from European countries, and solar panels from Asian countries have increased project costs by as much as 30%. This increase has rendered many contracted clean energy projects financially unviable.

Marguerite Wells, executive director of ACE NY, explained, “None of the contracts are financially viable anymore given that of tariffs. For a renewable project to get built, it has to be in the black a little bit. It can’t be in the red. You just can’t get a loan for that, and so the projects remain unbuilt.”

State and Developer Impasse

Developers have already navigated the complex process of securing agreements with the New York State Energy and Research Development Agency (NYSERDA), including project siting, permits, and environmental reviews. However, the tariff-driven cost increases are impacting the final stages of procurement and construction.

For example, wind turbine towers commonly utilize steel imported from Canada, now subject to a 50% tariff. Because these tariffs were not in place when contracts were awarded, bid prices do not reflect the current cost of materials.

Developers are seeking to terminate existing contracts and rebid projects at prices that account for the tariffs, but NYSERDA has declined to allow cancellations. NYSERDA stated it “expects its developers to honor their commitments,” and intends to “continue to protect ratepayers by holding contractors to the terms they agreed to.”

Potential Loss of Federal Tax Credits

A further complication is the eligibility of these projects for a 30% federal tax credit, which has since been phased out. Developers have already secured these credits and made investments based on their availability. If projects are not completed, New York State risks losing approximately $3 billion in potential tax credit benefits.

Wells emphasized the potential loss for New Yorkers, stating, “It’s just a loss to New Yorkers because it just means that electrons in the future that don’t have tax credits applied to them will get more expensive.”

Alternative Options and Future Outlook

If NYSERDA does not allow contract terminations, developers may choose to utilize their tax credits to build renewable energy projects in other states, resulting in a loss of approximately 3 gigawatts of clean energy for New York.

The industry anticipates potential future tariffs, highlighting the need for contracts that can accommodate such volatility. Governor Kathy Hochul’s senior communications advisor on energy and environment, Ken Lovett, criticized the tariffs, calling them “another example of Trump’s illegal tariffs raising costs and thwarting necessary green energy projects and job creators.”

As of December 8, 2025, a Massachusetts federal court ruled that federal agencies’ orders pausing all wind energy authorizations were arbitrary and capricious and contrary to law . The court vacated the Wind Order in its entirety.