US clean energy sector faces $24bn in project cancellations in 2025

22 October 2025

US businesses have cancelled, scaled back or closed nearly $1.6 billion worth of large-scale clean energy projects in September, bringing the total value of private-sector cancellations in 2025 to over $24 billion, according to an analysis by E2 and the Clean Economy Tracker.

The latest wave of private-sector cancellations – affecting four battery, storage, and electric vehicle factories in Kansas, Michigan, North Carolina, and Tennessee – comes as the U.S. Department of Energy cancelled nearly $8 billion for over 200 projects across the U.S. that are not tracked in E2’s analysis of privately funded projects. Nearly 3,000 jobs were lost to the cancellations and scale-backs, E2 found in September, bringing the total number of jobs lost to abandoned projects in 2025 to nearly 21,000.

According to E2, cancellations have been concentrated in areas represented by Republican members of Congress, which have lost more than $12.4 billion in investments and nearly 15,000 jobs. Democratic districts have seen over $7.5 billion in cancelled projects and roughly 5,000 jobs lost.

Amid the cancellations and rising threats to the clean energy industry, 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. The projects are expected to create about 985 new permanent jobs.

Since federal clean energy tax credits were passed by the US Congress in August 2022, 415 major projects across 42 states and Puerto Rico have been announced, with companies planning nearly $135 billion in investment and 125,000 permanent jobs. Of these, 65 projects have been cancelled, closed, or scaled back, including 42 in 2025, affecting more than 30,000 jobs and almost $27 billion in investment.

E2 communications director Michael Timberlake said the cancellations “aren’t just a setback for clean energy—it’s a setback for America’s workers and competitiveness.” He commented:

“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 paycheques, less local investment, and fewer opportunities for U.S. workers to lead in the industries of the future.

“While other nations are racing ahead to capture the clean energy economy, these cancellations leave American communities falling further behind.”