Trump Hails NY Climate Week with Decreased Borrowing Costs for Renewable Energy
In a significant move for the renewable energy sector, Carrier Global Corporation has announced a pilot program for battery-supported HVAC systems. This development was announced in September 2025, with Beth A. Wozniak joining the board of Carrier Global Corporation on the same day, although her role is noted as a board member, not CEO.
The new energy storage-plus-HVAC model aims to enable households to store renewable energy and deploy it during peak demand, potentially offering utilities a powerful tool to manage electricity demand at scale. This could accelerate the decarbonization of the US grid. Carrier is working with the Electric Power Research Institute (EPRI) to modernize the US grid in synch with the principles of Distributed Energy Resources.
The cost of renewable energy projects is a critical factor in their widespread adoption. Lower interest rates have a significant impact on the total cost, providing relief to renewable energy developers and investors. Conversely, a 2% increase in interest rates can increase the levelized cost of electricity for renewables by 20% compared to 11% for a gas-fired plant.
The Federal Reserve's rate cut may provide further relief, benefiting renewable energy projects. However, the reliability standard in Trump's 'American Energy Dominance' plan may not account for modern energy storage, smart grid technologies, and virtual power plants. This plan, described as an anachronistic, 20th-century standard, refers to the 24/7 availability of power generation regardless of the weather.
Trump has been insisting on a rate cut all year, but the exclusion of wind and solar from his 'American Energy Dominance' plan is believed to be due to a personal vendetta against wind turbines. The US solar industry, however, is not covered by this plan. The industry has been a crucial resource for ERCOT, the Electric Reliability Council of Texas, due to Texas's inability to depend on inter-state electricity sharing. From June 1 to August 31, solar met 15.2% of all demand in the ERCOT system, more than coal's 12.5% market share.
On September 9, solar energy in Texas generated almost half of total demand in the fast-growing Texas electricity market and provided more than 40% of the state's electricity for seven straight hours. The US solar industry has been saving the Texas grid from imploding under its own weight.
The offshore wind industry, on the other hand, is struggling due to the suspension of the federal offshore lease program by President Trump. Activity in the solar industry field and the onshore wind repowering field may see some benefits.
Hydropower, geothermal, biomass, marine energy, and nuclear energy are covered by Trump's 'American Energy Dominance' plan. The plan's success in integrating these resources with modern energy storage, smart grid technologies, and virtual power plants will be crucial in achieving a sustainable and reliable energy future for the US.
The Institute for Energy Economics and Financial Analysis has reported on the reliability of solar energy in Texas, highlighting its potential as a reliable source of power. As the renewable energy sector continues to evolve, the role of companies like Carrier Global Corporation in developing innovative solutions like energy storage-supported HVAC systems will be key in driving the transition towards a cleaner, more sustainable energy future.
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