Approximately $8 billion in clean energy investments and 16 large-scale projects were cancelled, closed, or scaled back during the first quarter of 2025, according to a new report from E2 (Environmental Entrepreneurs). The figure represents more than triple the amount of cancelled investments seen over the previous two years combined, reflecting rising uncertainty as federal lawmakers consider changes to clean energy incentives.
Despite this, investment in the U.S. clean energy sector continues. In March, companies announced $1.6 billion in new projects across six states, including a $200 million battery factory from Tesla near Houston expected to create 1,500 jobs. Overall, 10 projects announced during the month are projected to generate at least 5,000 permanent jobs if completed.
The data is part of E2’s Clean Economy Works monthly update, which tracks major clean energy and clean vehicle projects across the country.
“Clean energy companies continue to explore opportunities in the U.S.,” said Michael Timberlake, communications director at E2. “However, policy uncertainty and changes under consideration in Washington appear to be impacting investment decisions and long-term planning across the industry.”
Since August 2022, when federal clean energy tax credits were enacted, 34 projects have been cancelled, downsized, or closed, totaling over $10 billion in planned investments and more than 15,000 associated jobs, according to E2 and Atlas Public Policy data. The pace of these changes has increased in recent months, with 13 projects and over $5 billion in investments affected in February and March alone.
Notable recent cancellations include Bosch’s decision to halt plans for a $200 million hydrogen fuel cell facility in South Carolina and Freyr Battery’s cancellation of a $2.5 billion battery plant in Georgia.
The report also highlights geographic trends. A majority of clean energy activity — 62 percent of announced projects, 71 percent of projected jobs, and 83 percent of planned investments — has occurred in congressional districts represented by Republicans. These areas have also experienced the most cancellations to date, accounting for more than $6 billion in withdrawn investments and over 10,000 jobs.
To date, E2 has tracked 390 major clean energy projects across 42 states and Puerto Rico, totaling over $133 billion in planned investment and more than 122,000 permanent jobs. E2 plans to continue updating its data, including details on cancellations, at e2.org/announcements.
E2 representatives, including Executive Director Bob Keefe and Communications Director Michael Timberlake, will be attending the Society of Environmental Journalists annual conference in Tempe, Arizona, on April 24. The organization will host the conference's networking reception at the Omni Hotel at ASU.
