$14 billion in clean energy projects have been canceled in the US this year, analysis says

According to a recent analysis, over $14 billion in clean energy investments in the U.S. have been either canceled or postponed this year. The concern arises from the pending megabill of President Donald Trump, which has raised uncertainties about the future of domestic battery, electric vehicle, solar, and wind energy development.

Many companies fear that their investments are at risk following the passage of a tax bill by House Republicans that could eliminate clean energy credits, as noted by the nonpartisan group E2. The analysis conducted by E2 and consultancy Atlas Public Policy indicates that the cancellations have resulted in the loss of 10,000 new clean energy jobs. These tax credits, critical for advancing renewable technologies crucial to the clean energy transition, were reinforced in a significant climate bill passed during the tenure of former President Joe Biden in 2022.

The House’s recent bill has raised concerns about the potential impact on the industry after the approval of a multitrillion-dollar tax breaks package. E2’s executive director, Bob Keefe, expressed worries over the consequences of the House’s plan and the administration’s focus on diminishing clean energy efforts.

Several projects have been affected by the cancellations, including the Kore Power battery factory in Arizona, BorgWarner’s closure of two EV manufacturing sites in Michigan, and Bosch’s suspension of a $200 million investment in a hydrogen fuel cell factory in South Carolina. Factors such as tariffs, inflationary pressures, company struggles, and low technology adoption rates have also contributed to the changes in these companies’ plans.

The cancellation of projects this year, totaling over $12 billion, has been more prevalent in Republican-led states and congressional districts, with experts noting that red districts have benefited more than blue ones in terms of clean energy development and job creation. Some Republican lawmakers have advocated for the continuation of energy tax credits to support ongoing projects.

While the Trump administration has been rolling back environmental and climate-related policies, other countries are moving forward with green investments. The European Parliament and the International Maritime Organization are implementing policies to promote sustainability. Despite these challenges, there is still hope for the future of renewables in the U.S., with recent investments in transformer manufacturing in Virginia and solar manufacturing in Michigan.