Over $14 Billion in U.S. Clean Energy Investments Have Been Canceled or Stalled This Year: Report

More than $14 billion in clean energy projects have been canceled or delayed in the United States since January, according to a new analysis by Environmental Entrepreneurs (E2), a nonprofit clean energy business group.

The 2025 losses have also cost 10,000 new jobs in low-carbon energy and clean vehicle factories, a press release from E2 said.

The cuts came amid rising fears over what the future holds for federal clean energy policy and tax credits. In April, $4.5 billion in new electric vehicle (EV), battery and wind energy projects were canceled by companies in advance of the U.S. House of Representatives’ passage of an enormous tax and spending package — the One Big Beautiful Bill Act — which would essentially do away with clean energy tax credits passed in 2022.

“Now is not the time to raise taxes on clean energy and compound the business uncertainty that is clearly taking a greater and greater toll on U.S. manufacturing and jobs,” said Michael Timberlake, communications director at E2, in the press release.

Uncertainty around future of clean energy tax credits is driving billions in new investments out of the US, Red states in particular. "Georgia and Tennessee are particularly at risk because they are highly invested in EV and battery production" on.e2.org/3Z6zDNm

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— E2 (@e2org.bsky.social) May 29, 2025 at 10:27 AM

E2 tracked another $1.5 billion in projects that had been canceled in previous months.

Ahead of the Senate’s consideration of the legislation, the analysis by E2 shows that over 10,000 announced jobs were already canceled amid apprehensions over the bill’s advancement.

“If the tax plan passed by the House last week becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are canceled. Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America’s growing energy demand and that’s driving unprecedented economic growth in every part of the country,” Timberlake added.

Republican congressional districts have been experiencing the most cancellations despite benefitting the most from the tax credits. More than 13,000 jobs and over $12 billion in clean energy projects have been canceled so far in Republican districts this year.

“The House’s plan coupled with the administration’s focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers is causing businesses to cancel plans, delay their plans and take their money and jobs to other countries instead,” said Executive Director of E2 Bob Keefe, as The Associated Press reported.

Through April of 2025, more than 61 percent of all announced clean energy projects — as well as 72 percent of jobs and 82 percent of investments — were in Republican congressional districts, the press release said.

Tennessee and Georgia are especially at risk because they have made major investments in the production of EVs and batteries, according to Marilyn Brown, a professor of energy policy at the Georgia Institute of Technology, who did not participate in the analysis, reported The Associated Press.

“If all of a sudden these tax credits are removed, I’m not sure how these ongoing projects are going to continue,” said Fengqi You, a Cornell University engineering professor, who was not involved in the analysis.

In an April letter, some Republican lawmakers told Republican Senate Majority Leader John Thune of South Dakota that a repeal of the tax credits could weaken the U.S. position as a world energy leader.

However, as cancellations rise, businesses are still investing in the country’s clean economy. Companies announced almost $500 million in investments in April for new factories to produce solar, EV, grid and transmission equipment across six states. These include a $400 investment for the expansion of a Michigan solar wafer factory that is predicted to create a minimum of 400 new jobs and a $9.3 million investment from a solar equipment manufacturer in Canada to build a new solar plant in North Carolina.

If completed, the seven projects are expected to create almost 3,000 new permanent jobs.

Since Congress passed federal tax credits for clean energy in August of 2022, 45 announced projects have been closed, downsized or canceled. More than $16 billion in investments and 20,000 jobs were associated with the abandoned projects.

“Clean power is shovel-ready at scale,” said Jason Grumet, CEO of the American Clean Power Association, as Inside Climate News reported. “With unprecedented demand growth for electricity, we must send consistent investment signals across the energy sector. The greatest threat to a reliable energy system is an unreliable political system.”