Billionaire investor Chamath Palihapitiya says the United States should deploy a massive tax-advantaged energy program to eliminate electricity costs for tens of millions of households while freeing up power capacity for AI and data centers.
In a new episode of the All-In Podcast, Palihapitiya says a large-scale solar and storage push could simultaneously lower consumer costs, reduce grid strain and accelerate America’s competition with China.
He frames the idea around a federal tax equity fund sized in the hundreds of billions, aimed at rapidly expanding residential energy independence.
“I think the president should try to create a $300, $400, $500 billion tax equity fund and help eliminate the electricity costs of 50 to 100 million American households. If you actually go to solar and storage for every 15 million homes, you take a terawatt hour of demand off the grid. That’s an extra terawatt hour that you don’t need to build.
“So the reason why I like solar and storage is you make these folks so self-reliant. Now, all of a sudden, we’re actually catching up to China faster than we would have otherwise. We actually get a two-for-one. The consumer homes don’t have that anxiety anymore. They don’t have the bill. And because they’re generating their own power, they’re off the grid.”
Palihapitiya says the freed-up electricity could then be redeployed toward commercial and industrial growth, including the energy-hungry data centers underpinning AI expansion.
“And now what that means is that extra terawatt hour can actually go to the commercial and industrial applications, including these data centers.”
He points to existing tax incentives as proof that the policy framework already exists to support such investments, calling on profitable corporations to participate more aggressively.
“The President preserved the ability to make those kinds of investments and be taxed-advantaged for doing it in the One Big Beautiful Bill… We will look back, and I think that we will want to have seen these big companies who are unbelievably profitable, step up on behalf of American homeowners.”
Palihapitiya’s comments reflect a growing view among tech and energy investors that grid constraints, not capital or demand, may become the limiting factor in the next phase of US economic and AI growth.
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