A report from E2 said concerns over the future of federal clean energy tax credits and other policy changes have led to billions in cancelled projects.
A report from E2, which tracks clean energy manufacturing and project investment related to the Inflation Reduction Act of 2022, said that nearly $7.9 billion in investments and 16 new large-scale factories have been cancelled, closed, or downsized in the first three months of 2025.
The sharp decline in investment comes amid escalating market uncertainty around regulatory support for clean energy. This includes ongoing Congressional debate on the fate of the Investment Tax Credit and Production Tax Credit, two core elements of the U.S. clean energy industrial policy.
The Climate Jobs National Resource Center (CJNRC), a labor-led organization, said tax credits are “supporting hundreds of energy projects, creating good-paying jobs, protecting ratepayers from rising energy bills, and boosting America’s energy security.”
The cancelled projects were expected to create 7,800 jobs, said E2.
However, some investment and job creation were announced despite the ongoing uncertainty. E2 said businesses in March announced $1.6 billion in investments in new solar, EV, grid and transmission manufacturing facilities across six states, leading to an estimated 5,000 jobs created.
In total, since E2 has tracked clean energy investment announcements following the enactment of the Inflation Reduction Act of 2022, over $133 billion in private investment and an estimated 122,000 long-term jobs have been announced.
Since the legislation was passed in 2022, a total of 34 projects have been cancelled, closed or downsized, said E2. Over 15,000 jobs and $10 billion in investments were connected with the abandoned projects.
“But the rate of cancellations increased dramatically in the past two months,” said E2. “In February and March alone, 13 projects and over $5 billion in connected investments were cancelled or downsized.”
E2 noted that most of the clean energy investments announced since August 2022 have been in Republican districts. About 62% of all clean energy projects announced, 71% of all jobs and 83% of all investments are in congressional districts represented by Republicans.
(Read: “Instability, uncertainty put U.S. energy dominance at risk“)
