Tribes Pivot to Clean Energy Following Trump’s Rollback

Donica Brady, a member of the Northern Cheyenne Tribe, has a diverse work history ranging from security guard to school bus driver to fabricator of corrugated metal and bridge girders. However, her most rewarding role to date has been her contributions to connecting tribal communities to clean, affordable energy through solar panels and batteries. These tribal communities often struggle with paying high utility bills.

Her journey in the renewable energy sector began when she joined the nonprofit group, Indigenized Energy. Initially, her role was community outreach for a $4 million project funded by a federal grant. The project aimed to bring solar energy to tribal homes and schools. Her role expanded in 2024 when Indigenized Energy became part of a coalition of 14 tribes across five states. The coalition received $135.6 million from the Solar for All program, part of the Inflation Reduction Act.

The coalition worked promptly and successfully installed two initial projects in tribal land in South Dakota and northern Montana. Some of these projects included batteries that ensured power supply during blackouts. Brady shared a story about an elderly woman in Montana whose home, equipped with a solar-battery system, remained powered even when a storm knocked out the grid.

The positive momentum, however, was short-lived as Brady lost her job in the summer following the clawback of $7 billion in Solar for All funds by the Environmental Protection Agency, including Indigenized Energy’s grant. This move by the Trump administration led to legal challenges against the rescission of federal clean-energy funding.

Tribal Communities Struggle After Funding Cut

Tribal communities with clean energy projects that lost federal funding due to the Trump administration’s decisions are now grappling with the fallout and exploring ways to save their ongoing projects.

Cody Two Bears, the CEO of Indigenized Energy and a member of the Standing Rock Sioux Tribe, expressed his disappointment during a November press event. He highlighted that the incentives initially introduced by the Biden administration were aimed at providing support to communities like his for economic development and job creation via renewable and alternative energy.

The funds were intended to address disparities in energy access and affordability in tribal communities, which, according to a 2023 DOE report, are plagued by higher-than-average electricity reliability issues, compounded by higher-than-average poverty levels and inadequate housing. The report noted that approximately 54,000 tribal members live in homes that are not connected to the grid, and those that do have grid access, spend a disproportionate amount on energy.

Clara Pratte, a Navajo Nation member and co-founder and president of Navajo Power, a nonprofit aiming to develop up to 750 megawatts of solar and battery storage in the Navajo Nation, commented that there are many investors ready to contribute, but the challenge lies in assuring them that their investment carries low risk.

Chéri Smith, president and CEO of the nonprofit Alliance for Tribal Clean Energy, is currently focusing on finding ways to save projects hit by the cutback in federal funding by the Trump administration. Smith’s organization had previously worked with tribes to secure over $480 million in federal funding for clean energy projects in 2024, 85% of which has been rescinded.

Bridge Financing to the Rescue

Entities like the Indigenous Power & Light Fund are stepping in to fill the financing gap. A collaboration between the Alliance for Tribal Clean Energy and major philanthropies, the Indigenous Power & Light Fund aims to raise $100 million in three years, and has currently amassed just under $40 million. The fund is now trying to determine which projects it can support, offering zero-interest and low-interest loans of up to $1 million as well as recoverable grants of up to $500,000.

The alliance’s head of energy finance and structuring, Todd Halvorsen, pinpointed development capital as a major target. Development capital is usually the hardest to source and the most expensive as it has to be provided before the project has a clear revenue stream.

The effectiveness of such bridge financing is evident in the case of a project serving the Metlakatla Indian Community in southeast Alaska. This project was at risk due to a financing gap to pay for an underwater power line between the island and the city of Ketchikan. A $250,000 bridge loan from the alliance ensured that the cable was deployed last year.