Texas Energy Face-Off: CPS Warns Ending Green Tax Credits Will Cost Consumers More

What Happened

CPS Energy, San Antonio’s municipally owned energy utility, warned that federal proposals to eliminate tax credits for renewable energy—covering solar, wind, and battery storage—won’t stop green projects in Texas. Instead, it would shift added costs to consumers, says CEO Rudy Garza. Despite uncertainty in Washington, the utility maintains plans to expand renewable infrastructure, which Texas grid operator ERCOT credits with improving reliability amid surging demand—projected to climb 75% by 2030.

Why It Matters

1. Consumers Could Pay More – Without subsidies, solar and battery project costs may be passed on in higher rates for Texas households and businesses.
2. Grid Reliability at Stake – CPS and ERCOT argue a "balanced energy mix" is crucial to preventing blackouts, particularly during peak demand periods expressnews.com.
3. Investor Confidence Wavers – Uncertainty over tax policy has already cooled investments—with some Texas renewable projects canceled—as investors seek stable returns.

What’s Next

• Congressional Decisions: As federal budget talks progress, Texas’ renewable developers, consumer groups, and energy companies will lobby for keeping tax incentives intact.
• Local Project Outcomes: Watch for announcements—cancellations or continuations—of major renewable and storage projects across Texas.
• Rate Impacts: Utilities like CPS may propose rate hikes in coming months to offset tax revenue losses. That could spark debates at city councils and the PUC, potentially influencing 2025–26 energy legislation.