Energy Procurement and Clean Energy: Strategic Solutions for C&I Leaders Amid Policy Changes

Recent headlines about the impact of new federal tax policy on clean energy markets—such as the sharp decline in solar stocks following the latest Republican tax bill—underscore the volatility and complexity facing commercial and industrial energy buyers.

For organizations operating across the Northeast, Mid-Atlantic, Midwest, and Texas, these shifts demand a proactive, expert-driven energy procurement approach that balances cost control, risk management, and sustainability objectives.

The evolving regulatory environment, including changes to tax incentives for renewables, can create short-term market disruptions. However, long-term trends continue to favor diversification and sustainability. A well-structured procurement strategy enables organizations to mitigate risk, optimize costs, and maintain flexibility as market and policy conditions change.

Despite policy headwinds, the drive toward decarbonization and stakeholder expectations for sustainability remain strong. Clean energy procurement is still a critical component of a future-ready energy strategy.

How the latest policy changes impact clean energy tax credits

The recently passed House Republican budget bill marks a significant rollback of federal support for clean energy industries by targeting the Inflation Reduction Act’s (IRA) tax credits.

The bill accelerates the expiration of most technology-neutral clean energy tax credits, including those for wind, solar, and battery storage, moving their sunset date up by three years to 2028. Projects must now begin construction within 60 days of the bill’s enactment and be placed in service before the end of 2028 to qualify for these credits.

In addition, the legislation eliminates the transferability of tax credits—previously a key tool that allowed developers to finance projects by selling credits—except for certain nuclear energy ventures. The bill also tightens restrictions on projects with links to “foreign entities of concern,” particularly those involving Chinese firms or components, which is significant given China’s dominant role in the clean energy supply chain.

Nuclear energy gets a boost

While most clean energy tax credits are being curtailed or eliminated, the bill carves out exceptions for nuclear energy. Advanced nuclear projects and upgrades to existing reactors retain eligibility for tax credits if construction begins by 2028, and the production tax credit for existing nuclear plants is extended through 2031.

Nuclear energy was spared from the sweeping rollback of clean energy tax credits largely due to its unique position in U.S. energy policy and politics. Unlike wind and solar, nuclear is widely regarded—across party lines—as a reliable, zero-carbon baseload power source that supports grid stability and national energy security.

This bipartisan support is reflected in the bill’s preservation of tax credits for advanced nuclear projects and upgrades to existing reactors, even as most other clean energy incentives are accelerated for phaseout or eliminated.

Best practices for energy buyers

As the energy landscape continues to evolve, commercial and industrial (C&I) energy buyers must adopt forward-thinking strategies to manage costs, mitigate risks, and achieve sustainability goals. In 2025, this challenge is amplified by rising energy prices, increased demand from sectors like data centers and manufacturing, and a rapidly shifting regulatory environment that impacts both fossil fuels and renewables.

Federal policy changes, such as the rollback of clean energy incentives, are creating new complexities, while state-level mandates and corporate sustainability commitments continue to drive demand for renewable energy solutions.

At the same time, technological advancements—such as AI-driven analytics, real-time market intelligence, and smart grid innovations—are empowering organizations to make more informed procurement decisions and optimize energy usage. Supply chain constraints, grid modernization challenges, and competition for resources further underscore the need for a strategic, adaptable approach to energy procurement.

The following best practices can help organizations navigate market volatility and regulatory changes while optimizing their energy procurement approach, ensuring both cost efficiency and long-term resilience.

Diversify Procurement Strategies

Secure long-term renewable contracts where incentives remain favorable. However, maintain optionality with natural gas and on-site generation to hedge against policy-driven volatility. Consider a mix of fixed, variable, and layered contracts to balance cost certainty with market responsiveness.

Leverage Market Expertise and Analytics

Partner with experienced energy advisors who monitor regulatory developments, market trends, and supplier performance, providing timely insights to inform procurement decisions. Use advanced procurement software and analytics to forecast usage, identify savings opportunities, and manage risk.

Explore Flexible and Hybrid Solutions

Flexible buying strategies, such as staged purchasing or portfolio approaches, allow you to adapt to market changes and lock in value over time. Evaluate Power Purchase Agreements (PPAs), Renewable Energy Certificates (RECs), and utility green tariffs to support sustainability goals while managing exposure to policy shifts.

Prioritize Transparency and Reporting

Demand transparent reporting and clear communication from suppliers and advisors to ensure alignment with organizational goals and compliance requirements. Regularly review contract performance, energy spend, and sustainability metrics to drive continuous improvement.

Turn clean energy uncertainty into an energy procurement opportunity

While recent federal policy changes may present immediate challenges for clean energy procurement, they also highlight the critical importance of expert guidance and strategic planning. Partnering with seasoned energy market professionals helps commercial and industrial leaders to identify and capitalize on new opportunities in deregulated markets, mitigate the impacts of regulatory and market volatility, and advance sustainability goals in a way that is cost-effective and resilient to change.

Today’s volatile energy market requires the right procurement strategy to transform uncertainty into a powerful competitive advantage. Now is the ideal time to review your approach, engage with trusted advisors, and ensure your energy procurement decisions are informed, adaptable, and positioned for long-term success.

Sources

1. GOP to End Clean Power Credits Years Earlier in Revised Bill. bloomberg.com. Accessed May 22, 2025.
2. House GOP’s Approach to the IRA Clean Energy Tax Credits: Five Things to Know. taxfoundation.org. Accessed May 22, 2025.
3. Sustainable Energy in America 2025 Factbook. bcse.org. Accessed May 22, 2025.