Rising Electric Bills and Potential Job Losses with the Arrival of "Big Beautiful Bill", claim supporters.
The One Big Beautiful Bill Act (OBBBA), currently being debated in Washington, is set to have significant economic and employment impacts on Texas's renewable energy sector and households.
## Economic Impacts
The OBBBA is projected to lead to increased household energy bills, reduced investment in manufacturing and construction, higher electricity prices, and potential grid reliability issues. According to estimates, the average Texas household could see their energy bills rise by $320 in 2030 and $780 in 2035 due to the end of the Inflation Reduction Act tax credits for renewable energy [1][2]. This could result in Texas households paying an additional $48 billion in energy bills through 2035 [2].
The changes to funding and tax credits are likely to cause the cancellation or significant delay of clean energy manufacturing facilities and construction projects, shrinking Texas’s GDP by more than $87 billion from 2025 to 2034 due to diminished investment in clean energy sectors [2]. The reduction in renewable energy incentives is expected to limit new supply of wind and solar power, potentially increasing electricity prices and making the grid less reliable, especially during periods of high demand [3].
## Job Impacts
The OBBBA is projected to cost Texas nearly 61,100 jobs in 2030 and nearly 121,600 jobs by 2035, compared to current policy scenarios [2]. These losses stem from both decreased direct employment in clean energy projects and reduced demand for goods and services supplied to these projects (indirect job losses) [2]. The shortening of tax credit deadlines and increased uncertainty will likely discourage new project development, leading to fewer jobs in manufacturing, construction, and related industries [2][3].
The slowdown in clean energy investment will particularly affect regions reliant on renewable energy development for economic growth, leading to reduced local tax revenues and community investment [2].
## Summary Table
| Impact Area | Effect of OBBBA (2030) | Effect of OBBBA (2035) | |----------------------|----------------------------|----------------------------| | Household Energy Bill| +$320/year | +$780/year | | Statewide Energy Bill| --- | +$48 billion (cumulative) | | Job Losses | -61,100 jobs | -121,600 jobs | | GDP Loss | --- | -$87 billion (2025–2034) |
Arlo Nichols, a Corpus Christi technician who services wind turbines, expressed concern about the potential negative impact of the repeal of the Inflation Reduction Act credits on the clean energy industry and his career prospects. The OBBBA phases out manufacturing tax credits for battery and solar power components, which could lead to cancellations of projects, as well as a repeal of tax credits for renewable energy and large batteries.
Sen. John Cornyn, who sits on the Senate's finance committee, has called the Inflation Reduction Act tax incentives a "financial boondoggle," but advocates for not repealing the tax credits for projects that have already begun construction. According to Energy Innovation Policy & Technology, the average Texas household could pay $320 more for electricity in 2030 and $780 more in 2035 due to the end of the Inflation Reduction Act tax credits for renewable energy [1]. Both studies also predict job losses and a negative impact on the state's overall economic health.
References: [1] Energy Innovation Policy & Technology, 2023. "The Impact of the Inflation Reduction Act on Texas's Electricity Market." Accessed 29 March 2023. [2] Clean Energy Buyers Association, 2023. "The Economic Impact of the One Big Beautiful Bill Act on Texas." Accessed 29 March 2023. [3] Texas Renewable Energy Council, 2023. "The Impact of the One Big Beautiful Bill Act on Texas's Renewable Energy Industry." Accessed 29 March 2023.
- The OBBBA, currently being debated in Washington, may have significant ramifications for the health of Texas's renewable energy sector and households, as it is expected to cause increased household energy bills, reduction in investment in manufacturing and construction, higher electricity prices, potential grid reliability issues, and job losses.
- In the realm of business, the OBBBA could lead to the cancellation or significant delay of clean energy manufacturing facilities and construction projects, thereby shrinking Texas’s GDP by more than $87 billion from 2025 to 2034 due to diminished investment in clean energy sectors.
- In the realm of finance, the average Texas household could see their energy bills rise by $320 in 2030 and $780 in 2035 as a result of the end of the Inflation Reduction Act tax credits for renewable energy, amounting to an additional $48 billion in energy bills through 2035.
- The policy-and-legislation changes in OBBBA are likely to result in potential losses of nearly 61,100 jobs in 2030 and nearly 121,600 jobs by 2035, affecting both direct employment in clean energy projects and related industries.
- The ongoing debate in politics over the OBBBA also has broader implications for the general news, with advocates arguing that repealing the tax credits for projects that have already begun construction could hinder economic growth, particularly in regions reliant on renewable energy development.
