The US clean energy sector took another gut punch in September as businesses scrapped or scaled back nearly $1.6 billion in major factory and clean energy projects, according to the latest monthly analysis from E2 and the Clean Economy Tracker. That brings the total cost of private-sector project cancellations this year to more than $24 billion.
EV and battery projects are taking the hit
Four major battery, storage, and EV factories in Kansas, Michigan, North Carolina, and Tennessee were among the clean energy projects abandoned or downsized in September. General Motors reduced two EV production lines in Tennessee and Kansas, cutting 1,600 jobs. Sodium-ion battery startup Natron Energy closed its $40 million Michigan plant, laying off 150 workers, and canceled plans for a $1.4 billion North Carolina factory that would have created 1,000 jobs.
Altogether, September’s cancellations wiped out more than 3,000 jobs. In 2025, nearly 21,000 jobs tied to private clean energy projects have disappeared.
Meanwhile, the US Department of Energy canceled nearly $8 billion in funding for over 200 federally supported clean energy projects nationwide – and those aren’t even included in E2’s analysis of privately funded cancellations.
Political fallout
E2’s analysis reveals that the Republicans are most negatively impacted by their own policies. Republican-led districts have lost the most from private-sector pullouts – over $12.4 billion in investments and almost 15,000 jobs so far in 2025. Democratic districts, on the other hand, have lost about $7.5 billion and 5,000 jobs.
“The loss of these projects isn’t just a setback for clean energy – it’s a setback for America’s workers and competitiveness,” said E2’s Michael Timberlake. “For every canceled factory or downsized plant, many more projects aren’t even being announced at all as more capital flees and businesses look overseas to invest instead. That means fewer paychecks, less local investment, and fewer opportunities for US workers to lead in the industries of the future.”
Some good(ish) news
Despite the destruction, companies announced about $542 million in new investments in September, mainly in EV and solar parts manufacturing and grid infrastructure supporting AI data centers. Those new projects are expected to create nearly 1,000 jobs.
Since the passage of federal clean energy tax credits in August 2022 under the Biden administration, 415 major clean energy projects have been announced across 42 states and Puerto Rico, representing nearly $135 billion in planned investments and about 125,000 permanent jobs. However, 65 projects have since been canceled, closed, or scaled back – with 42 of them in 2025 alone, during the Trump administration – wiping out roughly $27 billion in investments and 30,000 jobs.
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.