The demand for clean, affordable, and reliable energy is rising rapidly both in the U.S. and globally, driven by economics, policy, technology, and climate concerns.
US demand is increasing domestically from corporate commitments, state-level renewable energy mandates, growth in electric vehicles, data centers, and electrified heating. Utilities are investing heavily in clean energy generation.
Globally, solar and wind are the fastest growing sources of electricity worldwide. Electric vehicle adoption is surging, especially in China and Europe. Developing countries are increasingly choosing renewables over fossil fuels due to lower costs and scalability.
America should treat this clean energy demand as an engine of growth, fueling our economy now and in the future. Smart government policy can provide the groundwork for domestic innovation to flourish. Investment follows innovation. Our market economy will meet demand with supply and make a handsome profit doing so.
The International Energy Agency forecasts that clean energy jobs will outnumber fossil fuel jobs 2 to 1 by 2030. This growth has an economic multiplier effect in our supply chains and local economies. U.S. leadership in clean energy gives us competitive advantage in the global economy. Missing this economic boom would damage our future power and world standing.
Innovation happens faster in a competitive free market, like the U.S., where the best ideas win and multiple technologies-solar, wind, nuclear, hydrogen- compete.
Given that companies are motivated by profit, how do we encourage them to create cheaper, cleaner, and efficient energy solutions? Create a level playing field, so that there is fair competition among all energy technologies, including fossil fuels.
Current and past government policies have created highly distorted energy markets, giving unfair advantages to certain sectors, much like a game referee would give favor to one team vs another. Taxpayer dollars subsidizing any special industry can play havoc with the intelligence and efficiency of the free market system. We should allow free market performance to pick winners and losers, not the government.
A case can be made that all energy subsidies—whether for fossil fuels, nuclear, or renewables—should be eliminated in the U.S. to create a truly competitive, transparent, and market-driven energy sector. Subsidies distort pricing, shield inefficient technologies from natural market pressures, and lead to inefficient allocation of public funds. Subsidies can lock in political favoritism, suppress innovation, and over-burden taxpayers.
Key ways current U.S. policy discourages energy innovation
- Policy Uncertaintyand regulatory abruptness – sudden policy shifts erode investor confidence and create a fragile planning process for long-term clean energy projects.
- Tariffs and supply chain disruption – Tariffs on imported clean energy components—especially solar modules, wind parts, and batteries—are driving up costs by 8–20%, particularly hitting technologies reliant on Chinese supply. Instability and frequent revisions to tariffs compound planning challenges for developers and manufacturers.
- Permitting and grid bottlenecks – Inefficient federal and state permitting processes slow project deployment down by years. Grid expansionhasn’t kept pace; there’s a backlog of over 2,000 GW of clean power projects waiting for grid connection, roughly twice the size of today’s grid.
- Current fossil fuel favoritism – Executive orders and new policies are prioritizing fossil fuel production– supporting coal and gas plants, and delaying clean energy implementations. This diverts capital and political support away from clean energy sectors. Note-The past administration used the Inflation Reduction Act to favor renewables by giving massive tax breaks and credits. Actions from both sides of the political spectrum created
forms of Corporate Welfare.
We shouldn’t be subsidizing fossil energy, or any other energy in the 21st century. We shouldn’t be setting up new policy hurdles for affordable renewable projects, especially during a time of spiking power demand. We shouldn’t be letting antiquated rules impede our ability to energize our nation.
We should be unleashing American markets and American innovation to lead the clean energy transition.
Our citizens – and people worldwide – are demanding reliable, affordable, clean energy. We can meet that demand by setting clear market signals. Cut costs and complexity by cutting out biased energy policies that benefit one type of energy at the expense of market choice.
America’s greatness was founded on free enterprise. To restore that greatness, we need to restore the free market.