Renewables in Texas: Challenges & Opportunities of the Lone Star State’s Changing Political Landscape

Texas finds itself at a crossroads in energy policy as the state’s 89th Legislative Session shifts into high gear. Power demand is predicted to surge in Texas from AI data centers, crypto currency, and the attractively low cost of doing business in the Lone Star State. While renewable energy is the fastest and most economical way to address these demands, a variety of legislative proposals threaten to slow down the expansion of wind, solar, and battery storage projects at a critical time.

A group of Texas-based clean power leaders gathered in Houston for a candid discussion about the challenges and opportunities that renewables face in the Texas Capitol in the coming months. The CleanTech Leaders Roundtable’s first Cleantech Coffee, sponsored in February by EDPR NA, included insights from EDPR NA Senior Government Affairs Associate Farish Mozley, Mark Stover (Texas Solar + Storage Association), and Laura Merten (Apex Clean Energy), moderated by Tom Weirich concluded with a strong call to action for renewable energy leaders.

Challenges Facing Renewable Energy in Texas

Legislative Barriers

Texas has long been a leader in wind energy and is quickly emerging as the #1 solar state, but legislative proposals could stand in the way of progress.

“We are in an interesting paradigm: everyone is talking about how we need more power, yet at the same time we see proposals coming out of the Capitol that would make it much more expensive, more time consuming, or completely halt the ability to build wind and solar in the state,” said Laura Merten, manager of State Affairs for Apex Clean Energy.

Senate Bill 819 (largely mirroring SB 624 from last legislative session), for example, introduces a permitting system exclusively for wind and solar projects, plus setback requirements for wind turbines of 3,000 feet from property lines – a standard much more stringent than those for other types of energy facilities.

“It’s a particularly onerous bill that would create a novel permitting system only for wind and solar under the guise of conservation, but it would actually trample private property rights,” said Farish Mozley, Senior Government Affairs Associate at EDPR NA.

Farish also pointed out that this new iteration of the bill would also eliminate wind and solar projects’ eligibility for tax abatements from municipalities and other entities under Chapter 312.

“These incentives make it more attractive and economically viable to develop these projects, but that provision of the bill would immediately take those away,” Farish noted.

Grid and Transmission Issues

The panel relayed that transmission issues are also top of mind this session, with efforts underway to expand transmission buildout across the state, largely in response to the expected load growth in the Permian Basin, where oil and gas operations are electrifying.

In light of this demand growth, Texas Senate Bill 6, introduced in February, aims to address electricity planning and infrastructure costs for large loads.

“It’s a low bill number in the Senate, which mean that it’s a priority bill for the Lieutenant Governor and will move fast,” said Mark Stover, Executive Director of the Texas Solar and Storage Association.

“I also think we will see some legislation around grid-enhancing technologies and non-wires solutions to make better use of the existing grid,” Mark added. “So instead of just building more infrastructure, let's make better use of what we've got right now.”

Misinformation & Political Opposition

Panelists agreed that a growing wave of misinformation—often spread on social media—is influencing public perception and legislative decisions. Opposition groups are leveraging concerns about wind turbine placement, battery safety, and land use to push for more restrictive policies. In this environment, there is a growing need for fact-based education and engagement to counter the narratives.

“This wave of misinformation—actually, I would call it disinformation because it's very calculated, very organized, and very well-coordinated – gets more and more creative every session,” Farish noted.

“With the rise of social media, online posts can spread false information about our technology faster than ever before. At the same time, the industry as a whole is working really hard to raise the bar for ourselves -- having internal setback standards, doing safety training for volunteer fire departments, and providing resources as needed,” Laura explained. “So we do a lot of education on what we’re already doing.”

Opportunities for Growth

Fast Deployment of Solar and Battery Storage
One of the biggest advantages of solar and battery storage projects are their speed of deployment. Unlike coal, nuclear, and even natural gas, which can take years to build, solar and battery storage projects can be operational in under 18 months. With Texas experiencing unprecedented and unpredictable electricity demand growth, renewables offer a practical solution to avoid grid failures and price spikes.

“Solar and storage can be developed faster than any other technology,” Mark noted. “Even though there is a lot of rhetoric from some groups in the Legislature, policymakers who are really driving these decisions generally understand and appreciate the value that renewables and energy storage to Texas. They see the economic benefits in their district through tax revenue and landowner income.”

Economic Benefits for Local Communities

Renewable energy pays off for Texas communities, whether red or blue. Stover pointed to a new study by University of Texas professor Joshua Rhodes, which found that solar, wind, and battery projects will generate $20 billion in taxes and $30 billion in landowner payments across their lifetimes. Currently, 75% of Texas counties benefit from renewable energy revenue, helping fund schools, hospitals, and roads—critical infrastructure in rural areas where other economic growth is limited.

Hydrogen and Emerging Technologies

One of the most interesting areas of clean energy policy development in Texas is hydrogen. In the traditional oil and gas state, hydrogen is quickly gaining traction as the next frontier, and Senate Bill 6 would address how large-scale hydrogen projects interact with the grid. As more companies explore using wind and solar to power hydrogen production, as well as other large loads such as data centers, panelists agreed that the state’s efforts to establish regulations to ensure grid stability while fostering innovation, will be crucial to hydrogen development.

What’s Next? A Call to Action

The Texas clean energy industry is fighting in some cases an uphill battle, but the panel concluded with a cautiously optimistic call to action, balancing offensive and defensive strategies to advance policies that support sustainable growth.

How can industry professionals and supporters help?

The one issue panelists agreed on most emphatically was the need for engagement, not just in Texas, but across the U.S. where renewable energy policy is being addressed.

“I cannot emphasize enough the importance of engaging politically,” Farish added. “Ask your internal policy teams how you can help. Ask, ‘How can I stay informed? Should I come to Austin to testify?’ Being willing to do that in the first place is one of the most valuable things you can do to support renewable energy.”

The panelists mentioned three actions that everyone can take to advance responsible clean energy policy in Texas and around the US:

• Engage politically: Industry leaders stressed the importance of lobbying, campaign contributions, and public testimony during committee hearings.
• Educate communities: Public perception matters. Addressing misinformation with clear, fact-based messaging can help shift policy decisions.
• Support trade associations: Groups like the Texas Solar + Storage Association play a key role in shaping legislative discussions. Joining their efforts is key to creating a unified voice in the legislative process.

With Texas at a pivotal moment in its energy future, active participation and advocacy are more important than ever. Whether through grassroots efforts, direct lobbying, or public education campaigns, the clean energy industry must take bold steps to ensure that renewables continue to thrive in the Lone Star State. Texans aren’t the only stakeholders; policymakers in other states are always watching what happens in Texas.

As the legislative session progresses, all eyes will be on the policies that emerge. Will Texas continue to lead in renewable energy, or will restrictive policies push investment elsewhere? Only time—and active engagement—will tell.

Summary of key bills being introduced in the 89th TX Legislative session: Keep tabs on bills moving through the Legislature using the state’s free Texas Legislature Online platform.

Senate Bill 819 (SB 819): Filed on January 16, 2025, this bill proposes additional permitting requirements for wind and solar projects. It mandates that these facilities obtain a permit from the Public Utility Commission (PUC), a requirement not currently imposed on other energy sources like coal, gas, or nuclear. The bill also introduces an environmental cleanup fee specifically for wind and solar projects, which would be used for decommissioning at the end of their operational life. Additionally, SB 819 proposes setback requirements for wind turbines of 3,000 feet from property lines, a standard more stringent than those for other energy facilities.

Senate Bill 714 (SB 714): This bill requires the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT) to adopt rules and procedures to address any distortions in electricity prices caused by federal tax credits for renewable energy projects. The intent is to ensure that such incentives do not adversely affect the state's electricity market.

Senate Bill 6 was introduced to address challenges related to electric grid reliability and cost allocation in ERCOT. The bill follows concerns raised after the 2021 Texas winter storm (Uri), which exposed weaknesses in ERCOT's planning and reliability mechanisms. The bill seeks to implement minimum transmission charges and planning requirements to avoid potential grid disruptions, in light of an expected surge in power demands.