Over $6.7 billion in U.S. clean energy projects cancelled in June

Over 5,300 jobs were lost in the month of June alone as negative policy outcome and ongoing uncertainty led to canceled projects and factories, said the E2 and the Clean Economy Tracker.

July 24, 2025 Ryan Kennedy

Image: Pixabay

Over $22 billion in clean energy projects, including installations, manufacturing facilities, and more, have been cancelled in the first half of 2025, including over $6.7 billion in June alone, said the Clean Economy Tracker and E2.

Investments cancellations in June occurred following “growing uncertainty among businesses as Congress was making the final push to effectively end federal clean energy tax credits.”

The latest wave of cancellations affected five battery, storage, and electric vehicle factories in Colorado, Indiana, Michigan, New York, and Oregon, said the report. More than 5,000 jobs were lost to cancellations and scale backs in June, bringing total job losses to 16,500.

“These cancellations aren’t just numbers on a balance book. They’re jobs, paychecks, and opportunities in communities that were counting on these clean energy projects to drive economic growth. And now they’re gone,” said Michael Timberlake, communications director, E2.

Republican voting districts suffered most of the job losses, with 11,700 jobs cancelled, delayed or closed in such districts thus far in 2025. Over $11.7 billion in announced investments were cancelled in Republican voting districts. In Democratic districts, $6.1 billion in investment and nearly 4,000 jobs were lost, said E2.

“By effectively ending clean energy incentives, Congress is turning its back on thousands of American workers and dozens of communities that were ready to build our energy future and strengthen America’s competitiveness,” said Timberlake.

With federal tax credits expiring years ahead of schedule, U.S. clean-energy installations will plunge 41% after 2027, according to a report from BloombergNEF (BNEF). BNEF forecast new wind, solar and energy storage installations will drop 23% through 2030 compared to a previous BNEF forecast.

Since the Inflation Reduction Act of 2022 was passed, E2 reports over $133 billion in clean energy investments have been announced. It has tracked nearly $25 billion in cancellations over that time period, representing about 19% of announced investments.

Battery energy storage and EVs have suffered the most cancellations since 2022, with about $13 billion each. About $2.8 billion in solar investments have been cancelled, said E2.

A report from FTI Consulting said that over 100 GW of proposed solar and wind projects are no longer economically viable following the passage of the Republican budget bill, the One Big Beautiful Bill Act.

FTI Consulting estimates that 54 GW, or 11% of solar and wind queue capacity, are likely to be impacted by the tax credit cuts for projects planned from 2026 through 2029. Another 49 GW, or 43% of proposed projects planned for 2030 through 2034 are likely no longer financially viable, said FTI Consulting.

FTI Consulting warned that the cancelled clean energy projects could lead to capacity shortfalls as electricity demand grows rapidly in the United States.

“Utilities will need to seek alternatives less affected by H.R. 1 [OBBBA] to bridge capacity shortfalls. Without coordinated policy and regulatory support, however, the risk remains high that the U.S. power grid will not be able to support the next wave of technological and industrial expansion,” said FTI Consulting.

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