- The US clean energy economy continues to contract under the second Trump administration as a series of executive actions and Congress’ One Big Beautiful Bill crack down harshly on solar and wind industrial policy.
The latest data from E2’s Clean Economy Tracker shows that in September alone, nearly 3,000 jobs were lost and $1.6 billion in projects were cancelled, factories closed, or investment commitments downsized.
Through September, the United States have haemorrhaged more than $24 billion in announced investments and lost nearly 21,000 jobs. Of that total, Republican voting districts have suffered the greatest losses, shedding $12.4 billion in investment and losing approximately 15,000 jobs.
The latest wave of private-sector cancellations includes the cancellation of grid-scale battery storage and EV manufacturing facilities in Kansas, Michigan, North Carolina and Tennessee, said E2.
Along with the private sector cancelations, federal funding is being yanked in staggering amounts. In October, the US Department of Energy announced the termination of 321 financial awards supporting 223 energy projects, resulting in “savings of approximately $7.56 billion dollars for American taxpayers,” said the agency in a press release. The cancellations were exclusively in historically Democrat-led states.
The cancellations mark a reversal from an unprecedented run of clean energy investment since the passage of the Inflation Reduction Act (IRA) of 2022. Since the nation’s largest-ever climate and energy spending package was passed, nearly $135 billion in private investment has been announced.
For the solar industry, over $18 billion in investment announcements were made since the IRA’s passage, leading to an expected 32,803 jobs. Of that total, $2.8 billion of private investment has been cancelled, leading to the loss of 2,381 jobs.
“The loss of these projects isn’t just a setback for clean energy – it’s a setback for America’s workers and competitiveness,” said Michael Timberlake, communications director, E2. “For every cancelled factory or downsized plant, behind the scenes many more projects are not being announced at all as more capital flees and businesses look overseas to invest instead. That means fewer paychecks, less local investment, and fewer opportunities for U.S. workers to lead in the industries of the future.”
Despite the widespread cancellations, new investments were also made. Businesses in September announced more $542 million in investments for new electric vehicle and solar parts manufacturing facilities, and critical grid infrastructure needed to support AI data center expansion, said the report. The projects are expected to create about 985 new permanent jobs, said E2.
Author: Ryan Kennedy
This article was originally published in pv magazine and is republished with permission.
