Energy Policy

IRA tax credit uncertainty kills $1.4 billion in clean energy projects in May

Impacted states include West Virginia, Alabama and Arizona. Read More

By Leah Garden June 23, 2025 (Updated on June 24, 2025)

Solar production projects are in greater jeopardy as IRA clean energy credits are cut across the board. Source: Red Zeppein/Pexels

Key Takeaways:

$1.4 billion in clean energy projects and factories were nixed in May, part of $15.5 billion in cancellations and 12,000 jobs cut since the Trump administration took office.
Experts warn of future energy shortages and rising electricity prices due to stalled development.
Still, the industry saw $450 million in new clean tech investments in May, including Rivian’s $120 million commitment to a new supplier park in Illinois.

As the Senate continues to debate the fate of the clean energy tax credits established within the Inflation Reduction Act (IRA), the clean energy marketplace continues to take a financial hit. The latest report from E2 and the Clean Economy Tracker found that $1.4 billion of clean energy projects and factories were canceled in May.

Impacting states including West Virginia, Alabama and Arizona, these numbers were actually an improvement over the loss off projects in April, which saw a $4.5 billion loss.

“The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear,” said Michael Timberlake, E2 communications director, “With renewable energy supplying more than 90 percent of new electricity in America last year, canceled projects will likely mean less available energy and higher electricity prices for consumers and business alike.”

Since the Trump administration came into office, $15.5 billion in new factories and electricity projects have been cancelled, along with roughly 12,000 potential jobs.

Eight clean technology projects were cancelled in May 2025. *Graphic courtesy of E2.*

Despite these setbacks, the clean technology sector continues to grow, albeit at a much slower pace: $450 million of investments in solar, EV and grid and transmission factories and projects was announced in May. Rivian, for example, announced a $120 million investment to build a 1.2 million square foot supplier park in Illinois.

Correction: The article originally credited the Clean Energy Buyers Alliance as a co-author of the report. It has now been changed to Clean Economy Tracker.

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