WASHINGTON – Energy Innovation estimates that clean energy tax cuts in The Big Beautiful Bill could cost Washingtonians an additional $39 annually by 2030.This translates to $3.25 more each month for the average household.
Meghan Mahajan, a senior analyst with Energy Innovation, told Non Stop Local that according to their modeling, energy prices across the United States are expected to rise due to the legislation.
“We saw across the board, including in Washington, energy prices are going to rise as a result of this legislation,” Mahajan said.
Mahajan said that fluctuating natural gas prices could further increase costs.
“Those prices could go up or down,” Mahajan added. “We’re seeing natural gas prices this year are expected to be almost double what they were last year.”
She also stated that solar energy is becoming more affordable over time. She says that the cuts to the Clean Energy Tax Breaks will slow the process of adopting renewable energy.
Before The Big Beautiful Bill was signed, manufacturers and home owners who constructed renewable energy sources, like solar panels, could receive tax breaks. In some cases, these breaks would be more than 30%.
“This would have just made it more accessible for more homeowners to get this type of technology and recoup costs faster,” Mahajan said.
However, Todd Myers, vice president of the Washington Policy Center, highlighted the costs associated with adding solar and wind resources.
Myers pointed out the gap in solar coverage during peak hours, which coincides with high electricity usage times.
“It doesn’t solve the problem of the fact that the highest level of demand during the day is 6 and 7 p.m. where there is less solar and less wind,” Myers said.”
To supplement potential shortages, energy companies use natural gas. Myers explained that when natural gas is starting up, the energy is most expensive. He said that when the system continuously runs, the cost decreases.
“Overall, natural gas and hydro are the least expensive form of energy as long as you can run them,” Myers said.
Myers explained that due to the large number of factors that go into energy prices, its difficult to isolate any one factor.
“I think the claim that we’re moving tax credits will increase homeowners electricity prices is sort of dubious,” Myers said. “And even if it were true, you wouldn’t see an impact for many years.”
Energy Innovation also said that clean energy tax credits could affect jobs, estimating a potential $20 billion loss in Washington’s Gross Domestic Product (GDP) and 14,000 jobs by 2030.
“There are a lot of clean energy projects that have been announced in Washington and all across the country that might now be at risk because they were planned for with these tax credits in mind,” Mahajan said.
However, Myers said tracking job impacts is challenging.
“It’s really premature to say oh these will increase or decrease jobs,” Myers said.
He told Non Stop Local that green energy job creation is mainly occurring in the southeastern United States.
Google’s Project Sunroof tracks an area’s compatibility with solar panels. Meyers says that areas with cloud coverage are less ideal for solar panels, like Western Washington.
Both Climate Innovation and the Washington Policy Center advised consumers to be conscious of their energy usage. “Just be mindful of the energy you’re using,” Mahajan said.
And Myers advised people to pay attention to their use.
“People need to have more control over their electricity,” Myers said.
Non Stop Local also contacted utility provider Avista for comment, they said:
Avista is in the process of closely assessing the potential impact that the clean energy tax credit reductions in the One Big Beautiful Bill (OBBBA) may have on customer energy bills. At this time, it is too early to determine the exact effect these changes will have. Some key information remains unknown, including pending guidance from the U.S. Treasury and IRS.
It’s important to note that any future cost recovery related to energy resources — including those affected by changes in federal tax policy — must be reviewed and approved by the Washington Utilities and Transportation Commission (WUTC). This regulatory oversight ensures that any costs passed on to customers are reasonable and justified
Avista remains committed to delivering reliable, affordable, and clean energy to our customers. We continue to explore strategies to mitigate potential cost impacts while advancing our clean energy goals.
