Clean energy projects continued to grow in May and June as renewable energy developers and manufacturers worked to meet federal tax credit deadlines amid rising electricity demand and prices. However, federal policy changes and other challenges are leading companies to cancel, downsize or abandon projects, reducing planned electricity generation, electric vehicle production, jobs and investment.
The projects announced during the two months included more than $6.1 billion in investment for utility-scale generation and storage projects announced in May, while manufacturing activity also increased in June.
According to research by non-partisan business organisation E2 and research firm Atlas Public Policy, clean energy generation projects announced in May and manufacturing projects announced in June are expected to create more than 19,800 jobs. At the same time, companies cancelled, downsized or abandoned projects that would have created nearly as many jobs.
New solar and storage generation projects increased in May as companies continued to develop projects ahead of the 4 July phase-out of federal clean energy tax credits under the One Big Beautiful Bill Act. The 22 utility-scale generation and storage projects announced during May are expected to create about 17,900 construction and operational jobs and involve approximately $6.1 billion in investment.
In the same month, 12 generation and storage projects were cancelled, representing 3,488 MW of lost capacity, nearly $5.9 billion in abandoned investment and about 18,300 lost construction and operational jobs.
Manufacturing investment also increased in June, with seven projects announced. The largest was Convalt’s planned $5 billion solar manufacturing facility in New Mexico. Electric vehicle manufacturer Lucid Motors, meanwhile, announced a major downsizing in June that is expected to eliminate about 700 manufacturing jobs.
Year to date, E2 has tracked the cancellation, closure or downsizing of 14 manufacturing projects, representing $7 billion in planned investment and 14,482 jobs.
E2, Atlas Public Policy, USA
