Demand spike, incentives bust, and tariffs: Renewable energy’s biggest stress test is here
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Electricity grid demands are on the rise in part due to energy-hungry technology like AI, and while experts believe renewable energy alone is not enough, it is essential to a broader supply equation. But with funding freezes, subsidy walk backs and tariffs on key components all on the table, solar, wind, and hydrogen companies are working harder than ever to make their business models work, even if they never intended to rely on federal support for the long term.
“One of the hats I used to wear was planning for the City of New York. For the longest time, there was decreasing [energy] demand,” said Aseem Kapur, chief revenue officer of GM Energy, an arm of General Motors that the company introduced in 2022. “Over the course of the last five or so years, that equation has changed. Utilities are facing unprecedented demand.”
Beyond New York City, U.S. energy demand is poised to grow upwards of 16% in the next five years, a big difference from the 0.5%it grew each year on average from 2001 to 2024, according to the Center for Strategic & International Studies.
For the renewable energy companies looking to break into the mainstream, subsidies have helped them get through their early days of growth. But President Trump has targeted these solutions from the first day of his presidency. In an executive order from Jan. 20, the Trump administration promised to “unleash” an era of fossil fuels exploration and production while also eliminating “unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.” Last week, Trump issued an EO pushing for more coal production.
In a six-year study breaking down energy subsidies from the U.S. Energy Information Administration from 2022 (the most recent edition), 46% of federal energy subsidies were associated with renewable energy, making them the largest slice of the energy pie. At the same time, natural gas and petroleum subsidies became a net cost to the government in 2022, reversing what had been a source of revenue inflows.
“Every company I’ve talked to recognizes that subsidies were required to help them through an R&D cycle, but they all believed they had to get to a cost parity point,” said Ross Meyercord, CEO of Propel Software (and former Salesforce CIO), whose manufacturing software solution serves energy clients like Invinity Energy Systems and Eos Energy Storage. “Every company had that baked into their business model. It may happen faster than they were planning on, and obviously that creates challenges.”
Meyercord believes that clean energy companies can handle either a subsidy decrease or a rise in tariffs, but both at the same time will add substantial stress to the market, which could have negative downstream effects on the grid — and the people who rely on it.
‘Not going to get rid of fossil fuels overnight’
Like any energy source, Kapur says success always comes down to economics. In the current environment, with interest rates, and fears that inflation will reignite, he said, “it’s going to come down to, ‘What are the most cost-effective solutions that can be brought to market?'” That may vary by region, he added, but notes that solar and energy storage have already reached parity in many cases and, in some instances, are below the cost of producing energy from natural gas or coal-powered resources.
This economics equation is true even in Texas, where the state’s Attorney General Ken Paxton has voiced anti-renewables sentiment in favor of the coal market (his lawsuit against major investment firm BlackRock and others in late November claims these firms sought to “weaponize their shares to pressure the coal companies to accommodate ‘green energy’ goals”). Wind accounts for 24% of the state’s energy profile, according to the Texas Comptroller, suggesting a penchant for any energy source that’s viable and cost-effective.
“The reality is, we’re not going to get rid of fossil fuels overnight,” said Whit Irvin Jr., CEO of hydrogen energy company Q Hydrogen. “They are going to have a very significant piece in our energy ecosystem for decades, and as new technologies come out on a larger scale, the use of fossil fuels will be curtailed, but we need to continue research, development and innovation in a way that makes sense.”
Irvin emphasizes the need for innovation from all sides, including creating new technologies that have a massive impact on large scalability and carbon reduction. “We don’t want to turn off that spigot. We just want to make sure that it’s going to the right places,” he said.
Hydrogen energy itself is one such source of innovation. Hydrogen ranges in sustainability depending on the fuel it uses to source its hydrogen. For example, green hydrogen — the only climate-neutral form of hydrogen energy — stems from renewable energy surplus. Grey hydrogen stems from natural gas methane. Q Hydrogen is working to open the world’s first renewable hydrogen power plant that will be economically viable without a subsidy. Irvin Jr. says the company, which produces hydrogen using water, plans to launch its New Hampshire facility this year.
“Hydrogen fuel cells are a really good way to provide backup power or even prime power to a data center that would be considered essentially off grid,” said Irvin, likening hydrogen fuel cell production to a form of battery storage. While hydrogen is not the most economical because of its comparative immaturity, Irvin said heightened energy demand will outcompete cost sensitivity for tech companies requiring more and more data storage.
While hydrogen projects continue to reap federal incentives to propel the industry forward, Irvin said subsidies were never part of his company’s business equation. “If they do exist, we’ll be able to take advantage of them,” he said. “If they don’t exist, that will still be fine for us.”
But that might not be true for every alternative energy company depending on where they’re at in the R&D cycle. Changes in federal incentives have real power to shift the progression of renewable energy in the U.S., especially when combined with tariffs that could stifle companies’ international relationships and supply chains. Meyercord, Kapur and Irvin all foresee private industry partnerships making a huge impact for the future of the grid, but recognize that the strain is increasing as energy tech of all kinds becomes smarter and more grid-dependent.
The new and improved Hyundai IONIQ 5, or the hot-selling Chevy Equinox EV? Which electric SUV makes the smarter lease? Here’s the rundown.
Over 607,000 electric vehicles were sold in the US in the first half of 2025, thanks to some big discounts. Many automakers are currently offering generous savings, as Trump’s “One Big Beautiful Bill” is set to end federal EV incentives at the end of September.
According to Cox Automotive’s latest EV Market Monitor report, EV incentives reached a record of nearly $8,500 in June, or about 15% off the average transaction price (ATP).
That’s more than double the incentives offered on gas-powered vehicles. Seven electric vehicles had an ATP below $40,000, including the Chevy Equinox EV. The Equinox EV was the top-selling EV in the price range.
Starting at just $34,995, GM calls it “America’s most affordable 315+ range EV.” The electric Equinox has already propelled Chevy to become the number two EV brand in the US behind Tesla.
Through the first half of the year, the Chevy Equinox EV accounted for nearly a third of GM’s electric vehicle sales. And it could have sold even more. A dealer in California reached out to Electrek, claiming they had to wait over a month to receive Equinox EV models. It’s now on track to be among the top three selling EVs in the US.
Which EV to lease: Chevy Equinox EV or Hyundai IONIQ 5
With leases starting at just $289 per month, it’s no wonder the electric SUV is flying off the lot. The offer is for 24 months with $3,909 due at signing.
Alternatively, you can opt for 0% APR financing for 60 months, which Chevy is offering on all 2025 electric vehicle models.
| 2025 Chevy Equinox EV trim | Starting Price | EPA-estimated Range | Monthly lease Price (July 2025) |
| LT FWD | $34,995 | 319 miles | $289 |
| LT AWD | $40,295 | 307 miles | $351 |
| RS FWD | $45,790 | 319 miles | $416 |
| RS AWD | $49,090 | 307 miles | $453 |
The base 2025 Chevy Equinox EV LT starts at $34,995 with up to 319 miles of range. The interior boasts up to 57.2 cu ft of space and a 17.7″ infotainment screen.
How does it compare to the IONIQ 5? Hyundai has upgraded its best-selling electric SUV with major improvements, including increased range (now up to 318 miles), a revamped interior and exterior, and a built-in NACS port to access Tesla Superchargers.
After cutting lease prices again this month, the 2025 Hyundai IONIQ 5 is currently listed at just $179 per month.
However, that’s for the base SE mode, which has an EPA-estimated driving range of 245 miles. The longer-range IONIQ 5 SE RWD, with 318 miles range, can still be leased for just $199 per month right now. Both offers are for 24 months with $3,999 due at signing.
| 2025 Hyundai IONIQ 5 Trim | EV Powertrain | Driving Range (miles) | Starting Price* | Monthly lease price July 2025 |
| IONIQ 5 SE RWD Standard Range | 168-horsepower rear motor | 245 | $42,500 | $179 |
| IONIQ 5 SE RWD | 225-horsepower rear motor | 318 | $46,550 | $199 |
| IONIQ 5 SEL RWD | 225-horsepower rear motor | 318 | $49,500 | $209 |
| IONIQ 5 Limited RWD | 225-horsepower rear motor | 318 | $54,200 | $309 |
| IONIQ 5 SE Dual Motor AWD | 320-horsepower dual motor | 290 | $50,050 | $249 |
| IONIQ 5 SEL Dual Motor AWD | 320-horsepower dual motor | 290 | $53,000 | $259 |
| IONIQ 5 XRT Dual Motor AWD | 320 horsepower dual motor | 259 | $55,400 | $359 |
| IONIQ 5 Limited Dual Motor AWD | 320-horsepower dual motor | 269 | $58,100 | $299 |
Hyundai is also throwing in a complimentary ChargePoint Level 2 home charger with the purchase or lease of a new 2025 IONIQ 5. All IONIQ 5 trims are listed with 1.99% APR financing for up to 60 months.
The 2025 Hyundai IONIQ 5 offers up to 59.3 cu ft of cargo space with a dual 12.3″ driver display and infotainment system setup.
Both the Hyundai IONIQ 5 and Chevy Equinox EV are hard to pass up right now, with lease prices expected to be as low as they will ever be.
Looking to snag the savings while they last? You can use our links below to find offers on the Chevy Equinox EV and Hyundai IONIQ 5 near you.
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Volkswagen’s ID.3 just got a gold star from the folks at ADAC, Europe’s largest automobile club. After four years of pushing the all-electric hatchback to its limits in a long-term endurance test, the VW ID.3’s battery still held 91% of its original capacity – a big win for EV durability.
Engineers at ADAC’s Test and Technology Centre in Landsberg am Lech, Germany, put the ID.3 Pro S through its paces, clocking over 160,000 kilometers (roughly 99,400 miles). That’s the full length of VW’s battery warranty – eight years or 160,000 km – and the car came out swinging.
The ID.3 Pro S is equipped with a 77 kWh net-capacity battery. Volkswagen guarantees that its ID. models will keep at least 70% of their original net battery capacity by the end of the warranty period. After the test, the ID.3 beat that benchmark by a long shot.
The ADAC didn’t baby this car, either. Over 40% of the charging was done using DC fast chargers, and the vehicle was frequently left at 100% charge between test drives, sometimes for days at a time. (That’s a no-no for battery longevity, but it’s precisely why this test matters.)
Engineers kept a close eye on the ID.3’s battery health between drives. They also regularly updated the vehicle software, including installing Volkswagen’s EV Route Planner, which calculates optimal charging stops using real-time traffic and charge level data. One major update even bumped up the charging rate to 170 kW.
The software upgrades didn’t just improve charging – they helped boost efficiency too, especially over short distances and during chilly winter temps (0–5C/32–41F).
Beyond battery life, the VW ID.3 also scored high marks for build quality. Even after all those kilometers, ADAC said the chassis, suspension, steering, and body were still in solid shape – no significant wear or issues.
ADAC’s big piece of advice is to keep your software up to date. That made a noticeable difference in range and driving experience over the four-year test.
Martin Sander, a Volkswagen board of management member responsible for sales, marketing and after sales, says the results show its ID. line (including the US-made ID.4s) is built to last. “A high battery capacity of over 90% after 160,000 kilometers confirms our ID. models are also very attractive as used cars and continue to meet the requirements of our customers.”
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla announcing new Model 3 and Model Y variants, the robotaxi expansion wars, big Lucid news, and more
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After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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