Hakim Trading Blog

New Permitting Freeze Threatens Hundreds of U.S. Solar and Wind Projects

New Permitting Freeze Threatens Hundreds of U.S. Solar and Wind Projects

Background

Since President Donald Trump assumed office in January 2025, the pace of clean‑energy approvals on federal lands has come to a standstill. The administration has rolled back a number of Biden‑era policies that had previously streamlined permitting for solar and wind projects, and has adopted a more confrontational stance toward green‑energy development.

In a recent order, the Department of the Interior declared that all solar and wind projects on federal lands and waters must receive a personal green light from Interior Secretary Doug Burgum. The directive was announced in July 2024 and effectively ended what Burgum described as the “preferential treatment for subsidy‑dependent, unreliable wind and solar energy.”

Current State of Approvals

  • **Only one solar project** has been approved on federal lands since the start of the Trump administration.
  • **No wind or solar projects** have cleared the approval process on federal lands since the July 2024 order.
  • Under the previous Biden administration, the U.S. had approved **13 solar and 2 wind projects** on federal lands.

The stark contrast between the two administrations highlights the dramatic slowdown in permitting activity.

Industry Impact

The freeze threatens **more than 500** wind and solar projects, representing a total potential capacity of **117 GW**. This figure accounts for roughly half of all new planned renewable capacity in the United States. According to a recent SEIA analysis of EIA data, 17 states could lose over 50 % of their projected renewable capacity if the permitting freeze continues.

Industry groups SEIA and Wood Mackenzie have noted that solar capacity installations in the third quarter saw a surge as developers rushed to secure the remaining investment tax credits that are being phased out under the current administration. However, the same report warned that:

  • **Federal permitting actions remain uncertain** following the passage of the One Big Beautiful Bill Act (OBBBA).
  • **Treasury guidance on Foreign Entity of Concern (FEOC) requirements** is still months away, adding another layer of ambiguity for developers.

These uncertainties compound the risk that the industry faces, potentially delaying or canceling projects that were already in advanced stages of planning.

Uncertainty Ahead

The combination of a strict permitting freeze, the OBBBA, and pending FEOC guidance creates a volatile environment for renewable developers. While the last investment tax credits may provide a temporary boost to construction activity, the long‑term outlook remains bleak if the current regulatory trajectory continues.

The situation underscores the importance of clear, predictable policy frameworks for the renewable energy sector. Until the federal government clarifies its stance on permitting and foreign‑entity oversight, developers will likely postpone new projects, further stalling the growth of clean‑energy infrastructure across the country.

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**Key Takeaways**

  • The Trump administration’s new order has halted approvals for solar and wind projects on federal lands.
  • Only one solar development has been approved since January 2025.
  • The freeze could eliminate more than 500 projects, totaling 117 GW, threatening half of the U.S.’s planned renewable capacity.
  • Uncertainties around the OBBBA and pending FEOC guidance add further risk to the sector.

The renewable energy community remains closely monitoring developments as the federal government moves forward with its current policy agenda.


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