Solar Projects in eastern La Paz County will proceed for now

A spokesperson for the company planning several large solar energy projects in eastern La Paz County said the projects will proceed as planned. However, they are looking at the new policies recently enacted by Congress to determine what the effect on these projects will be.

Suzi Emmerling is a media consultant for 174 Power Global, a company that has several solar power projects currently in the planning and permitting phase. They would be located along Interstate 10 in eastern La Paz County. 174 Power Global is owned by South Korean energy company Hanwha and Hanwha Energy USA Holdings.

One aspect of President Donald Trump’s “One Big Beautiful Bill” is the phasing out of tax credits for renewable energy that were introduced during the Joe Biden Administration. The bill, which President Trump signed July 4, will end residential solar tax credits at the end of this year and end credits for large-scale projects in 2027.

“The new policies are very complex so the team has been working through everything to assess the project (particularly with regard to the recent guidance issued from Treasury following the President’s Executive Order),” Emmerling told the Pioneer in an email. “At the moment, we believe this project will proceed as planned. But obviously, given the current climate, we will continue to monitor everything very closely and we’ll be working hard to keep everything in place.”

174 Power Global’s projects will tie into the Ten West Transmission Link to send power to California and other points. A total of 5,900 acres was conveyed from the U.S. Bureau of Land Management to La Paz County in 2020. In March 2020, 174 Power Global signed an agreement with the county for an 850 megawatt solar facility on 4,000 acres of former BLM land. They have since asked for 3,000 more acres, most of which is either BLM land or state land.

The President’s bill phases out many of the renewable energy tax credits put in place by former President Joe Biden’s Inflation Reduction Act. Media reports have stated the removal of these tax credits will severely restrict the growth of the energy sector and eliminate jobs.

The Washington Post said solar and wind were the fastest growing sources of new power in the nation, accounting for 80 percent of all new power being added to the grid.

Fortune Magazine reported July 3 on their website that eliminating these tax credits could put further stress on America’s overburdened electrical grid, could cost American jobs and cause the nation to lose the Artificial Intelligence (AI) race to China.

By contrast with what the bill does for renewable energy, the Center for American Progress reports the President’s bill includes $15 billion in tax breaks for fossil fuels (natural gas, coal and oil). They said this would hurt American jobs and increase pollution.

The Rhodium Group said the President’s bill would raise energy costs by 7 percent for American households in 2035. They added the bill will also substantially decrease the amount of new electrical power added to the grid.