Nearly $8 billion in U.S. clean energy investment announcements cancelled in 2025

AI generated summary

A recent report from E2 highlights a significant downturn in U.S. clean energy investments, with nearly $7.9 billion in funding and 16 large-scale factories being cancelled, closed, or downsized in the first quarter of 2025. This decline is attributed to increasing market uncertainty surrounding regulatory support, particularly concerning the Investment Tax Credit and Production Tax Credit, which are vital to the U.S. clean energy policy. The Climate Jobs National Resource Center emphasized the importance of these tax credits in supporting energy projects, creating jobs, and enhancing energy security.

Despite the cancellations, some investment activity continues, with $1.6 billion announced for new solar, EV, and manufacturing facilities in March, potentially creating 5,000 jobs. Since the Inflation Reduction Act's enactment in 2022, over $133 billion in private investments and an estimated 122,000 long-term jobs have been announced, although 34 projects have been abandoned, amounting to over $10 billion in investments and 15,000 jobs. E2 noted a sharp increase in cancellations in recent months, particularly in February and March, and highlighted that a majority of clean energy investments have occurred in Republican districts.