Trump's energy pivot accelerates US solar and wind power mergers, asset sales

Trump’s “energy dominance” agenda weighs on sector Private equity, utilities eye undervalued clean energy projects By Pooja Menon and Sumit Saha Sept 26 (Reuters) - The Trump administration’s rapid retreat from renewable energy has kicked off consolidation and asset sales among smaller U.S. solar and wind power companies as they scramble to stay afloat, industry insiders and analysts said. President Donald Trump’s One Big Beautiful Bill Act (OBBBA) has overhauled tax credits and sharply shortened eligibility windows for solar and wind projects as part of an “energy dominance” agenda focused on oil, gas, coal and nuclear, in a sharp departure from the green energy-focused policies under his predecessor Joe Biden. “There’s likely to be consolidation due to a variety of federal moves of late, including the recently passed tax bill (OBBBA) which eliminates investment tax credits,” said Gregg Felton, CEO of Connecticut-based Altus Power. Clean energy deals surged to 63 with a combined value of around $34 billion in the first half of 2025, according to KPMG, versus roughly 57 deals worth about $7 billion in the second half of 2024. Compounding the worries, the Inflation Reduction Act, which had allowed projects to use or sell credits to lower construction costs, was rolled back earlier this year, while loan guarantees for green projects were scrapped in late December. The compressed deadlines and reduced support could force smaller players to merge, form joint ventures, or sell assets to survive, said John Villali, senior research director at IDC Energy Insights. The U.S. Energy Department said on September 24, it intends to cancel more than $13 billion in funds for green energy, further darkening the outlook for such projects. That followed axing in May of more than $3.7 billion in funding for 24 green energy projects approved under Biden, including one at an ExxonMobil (XOM.N) refinery in Texas. Sunnova Energy (NOVAQ.PK) recently lost a $2.92 billion loan guarantee. The cancellation of federal loans will likely drive M&A in the utility sector, particularly for distressed clean energy assets, said Gregg Semler, CEO of InPipe Energy. SAVVY BUYERS AWAIT Private equity firms and utilities are already circling. In late August, CBRE Investment Management agreed to acquire ClearGen, a clean energy developer and manager backed by Blackstone (BX.N) with more than 250 projects across 14 states. Disruptions are industry-wide but nimble developers and market-aware investors will still find opportunities, ClearGen CEO Rob Howard said. Larger utilities and private equity investors with stronger balance sheets and risk tolerance are lapping up the undervalued assets. “We are on the buy side…actively dealing with greenfield developers and other energy companies,” said independent power producer Agilitas Energy CEO Barrett Bilotta. The company plans more M&A announcements this year after having acquired a solar project in Rhode Island in August and two hydropower projects in West Virginia and Maryland in June.