Trump's energy pivot accelerates US mergers and asset sales of solar, wind power
Analysts and industry insiders say that the Trump administration's retreat from renewables has prompted consolidations and asset sales by smaller U.S. wind and solar power companies, as they struggle to stay afloat.
The One Big Beautiful Bill Act of President Donald Trump (OBBBA), which focuses on coal, oil, and gas, has drastically shortened the eligibility window for solar and wind energy projects. This is a radical departure from his predecessor Joe Biden's green energy policies.
Gregg Felton is the CEO of Connecticut's Altus Power. He said that there will be consolidation as a result of a number of recent federal actions, including the newly passed tax bill, which eliminated investment tax credits.
KPMG reports that clean energy deals grew to 63 in the first half 2025 with a value of $34 billion. This compares to roughly 57 deals valued at $7 billion during the second half 2024.
Inflation Reduction Act was repealed earlier this year and loan guarantees for green project were dropped in December. John Villali said that the reduced support and compressed deadlines could force smaller companies to merge, create joint ventures or sell assets in order to survive.
The U.S. Energy Department announced on September 24 that it plans to cancel over $13 billion of funds for green power, further dimming the outlook for these projects.
This was after the cancellation in May of funding totaling more than $3.7billion for 24 green energy project approved by Biden. One of these projects took place at an ExxonMobil Refinery in Texas.
Sunnova Energy lost a loan guarantee of $2.92 billion recently.
Gregg Semler CEO of InPipe Energy said that the cancellation of federal loan will likely lead to M&A activity in the utility industry, especially for distressed clean energy assets.
SAVVY BUYERS ARE AWAIT
Utility companies and private equity firms are already in the ring.
CBRE Investment Management acquired ClearGen in late August. ClearGen is a clean energy manager and developer backed by Blackstone, with over 250 projects spread across 14 states.
ClearGen CEO Rob Howard stated that disruptions are occurring across the industry, but nimble investors and developers will still be able to find opportunities.
Undervalued assets are being snapped up by large utilities and private equity firms with risk-tolerant balance sheets, and stronger balance sheets.
Barrett Bilotta, CEO of Agilitas Energy, an independent power producer, said: "We are actively dealing with greenfield and other energy companies."
The company is planning to announce more M&A deals this year, after acquiring a solar project from Rhode Island in August as well as two hydropower projects located in West Virginia and Maryland. (Reporting and editing by Sriraj K. Kalluvila in Bengaluru, Pooja M. Menon & Sumit S. Saha)
(source: Reuters)
