Market Pressure Is Mounting in Renewables – But So Is Opportunity

The renewable energy sector is facing real pressure right now. There’s no sugarcoating it.

Policy uncertainty around the IRA, tariff concerns, and a residential market slowdown driven by high interest rates are all taking their toll. Many organizations are feeling the pain.

We’re also seeing major pullbacks in offshore wind. Cuts to federally funded institutions like NREL and the DOE have already triggered layoffs. According to Reuters, NREL cut approximately 3% of its staff due to reduced federal support. That’s a clear signal that even core clean energy infrastructure isn’t immune.

Uncertainty Breeds Inaction

We’re hearing a clear and consistent refrain from executives across the industry:

“Tariffs are damaging, but the uncertainty is worse. Once we know where things stand, we can move forward and make decisions.”

And that’s the issue. Uncertainty is causing hesitation across the board:

• Holding off on key procurement decisions
  
• Delaying project development timelines
  
• Pausing hiring plans
  
• Deferring construction starts
  

This isn’t new. The industry has been through moments like this before. And when clarity returns, activity picks up fast. All at once.

What We Know and What We Don’t

Right now, there’s cautious optimism that the core of the IRA will hold. The 45X manufacturing credits appear to have bipartisan support. There is some concern about a potential step-down in the ITC over the next few years, but it’s too early to know what that will look like.

On the tariff front, proposed duties as high as 145% on Chinese imports are creating major concerns, particularly in the BESS market. Considering the lack of alternative supply chains for batteries and raw materials, excessive tariffs may prove unworkable. Most expect the final numbers to come in lower, and when they do, many companies will finally be able to act.

The Grid Can’t Wait

Demand for power isn’t slowing down.

Data centers, EVs, and onshored manufacturing are putting historic strain on the grid. That demand can’t be met in time using traditional fossil fuel generation. Low-cost solar and energy storage are no longer optional. They’re essential.

With Challenges Comes Opportunity

Periods like this bring pain, but they also create opportunity.

We’re seeing highly qualified professionals hit the market. Some have been laid off. Others are proactively exploring new roles because they’re concerned about the stability of their current organization. These are people who wouldn’t be available under normal market conditions.

The companies that are hiring right now are going to win. They’re adding key team members quietly and deliberately while others wait. When the market picks back up—and it will—those teams will be ready to execute while their competitors scramble to catch up.

The coming weeks are expected to bring more clarity on both policy and tariffs. When that happens, momentum will return quickly. Companies that have used this time to think ahead—whether by strengthening their team, refining development plans, or positioning for procurement—will be better prepared to move when the market does. You don’t have to make every decision now, but forward motion now will mean faster execution later.