According to the latest monthly analysis of clean energy projects tracked by E2 and the Clean Economy Tracker, as the US Senate prepares to vote on a bill to increase taxes on the clean energy industry, some clean energy companies cancelled $1.4 billion worth of new factories and clean energy projects in May.

The latest cancelled projects include manufacturing plant projects in West Virginia, New York, Alabama, Arizona, and Washington, which means $15.5 billion worth of new plants and power projects have been cancelled since January 1st. These cancelled projects were originally expected to create nearly 12000 new job opportunities.

According to E2's analysis, the Republican congressional district suffered the most severe losses. As of now, over $9 billion in investments in Republican districts have been cancelled, postponed, or closed in 2025, resulting in nearly 10000 job cuts.

The $1.4 billion project cancelled in May is expected to create at least 1000 new job opportunities. The five closed projects announced last month resulted in the layoff of 600 workers. The projects cancelled in May also included General Motors' decision to convert an electric car factory located in Tonawanda, New York to produce eight cylinder gasoline cars.

The ongoing policy uncertainty and the consequences of expected tax increases for clean energy companies are becoming increasingly clear, "said Michael Timberlake, communications director at E2. Enterprises are responding to the Senate proposal - just like the House proposal - which will significantly reduce tax credits that drive the prosperity of the US energy and manufacturing industries

Along with numerous project cancellations, the company announced in May an investment of nearly $450 million to build new solar, electric vehicle, grid, and transmission equipment factories in five states, including $120 million from electric vehicle manufacturer Rivian to build a 1.2 million square foot supplier park in Illinois, expected to create 100 new jobs. In addition, Prolec GE Waukesh announced plans to invest $140 million to build a power transformer manufacturing plant in North Carolina, which is expected to create 330 new jobs.

As of May, 62% of all announced clean energy projects, 71% of all jobs, and 82% of all investments are located in Republican congressional districts.

The cancellation of these projects is just adding insult to injury, "Timberlake said. Last year, renewable energy accounted for over 90% of the new electricity supply in the United States. Cancelling these projects could mean a reduction in available energy, and both consumers and businesses would face higher electricity prices

Since the federal Clean Energy Tax Credit Act was passed by Congress in August 2022, a total of 53 announced projects have been cancelled, closed, or scaled back. These abandoned projects involve over 21000 job opportunities and $18.2 billion in investments.