Financial Services Power & Renewables

Tax credit changes and queue bottlenecks threaten renewable project viability

Even projects with an interconnection agreement have a 50% chance of suspension

byEnverus

CALGARY, Alberta (Sept. 10, 2025) Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, released a report today that examines the growing challenges facing renewable energy developers in the U.S. power sector. The report highlights how interconnection delays, policy changes and economic pressures are reshaping project timelines and grid reliability.

“The combination of rising power demand and regulatory shifts is creating a perfect storm,” said Brynna Foley, associate at EIR. “Without swift reforms, we risk a supply gap in our generation buildout.”

Key Takeaways:

  • Interconnection queue delays have increased by up to 60% since 2020, with solar projects facing the longest waits — up to 92 months in some regions.

  • The One Big Beautiful Bill Act accelerates the phaseout of tax credits, making many solar and wind projects financially unfeasible.

  • Developers must complete facility studies by the end of 2025 to qualify for tax credit exemptions, but average study times pose a major hurdle. With new IRS guidance, projects must demonstrate continuous progress towards connection to qualify for the 2027 tax credit deadline.

  • Nearly half of projects with interconnection agreements are suspended due to equipment delays, local opposition and financing challenges.

  • Delays in renewable buildouts and changes to emissions policy are allowing thermal plants to postpone retirements, with coal plants extending operations by an average of 17.8 months.
Enverus-intelligence-research-queue-applications-by-project-type

EIR’s analysis pulls from a variety of products including Enverus FOUNDATIONS® – Power & Renewables and Instant Analyst™.

You must be an Enverus Intelligence® subscriber to access this report.

About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

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