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The Environmental Defense Fund cited $1.4 billion in canceled renewable energy investments stemming from federal policy shifts around renewable energy, electric vehicles and energy efficiency.
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President Donald Trump cut many clean energy initiatives when he signed the One Big Beautiful Bill Act last year, and his administration has continued in that vein through executive and regulatory actions. For example, in February alone:
The most affected sectors from January 2025 through Q1 2026 were EVs and batteries, with 15% of announced EV investments and 12% of battery investments canceled, the report said. However, companies continued investing in transmission equipment, grid technologies and solar manufacturing in Q1.
The report noted that international geopolitics also affected the U.S. renewable energy manufacturing sector. For example, Canada allowed the first imports of Chinese EVs starting March 1, and the war in Iran continues to roil energy markets.
These and other events throughout 2025 and 2026 have forced manufacturers to rethink renewable energy projects in the U.S. According to the report, manufacturers canceled four facilities in Q1, resulting in a loss of $1.4 billion in previously announced investments. Several other facilities announced pauses in manufacturing.
At the same time, 12 companies announced $2.5 billion in new investments that created 2,200 jobs. These investments and jobs were tied to 21 projects in 12 states.
All of this collectively resulted in a net $1.1 billion increase in investment but net loss of 5,900 jobs across 15 states in Q1, EDF said. The net positive EV investments were driven by an $800 million announcement by Toyota for its 40-year-old Kentucky plant and a $700 million announcement by Scout Motors for its Blythewood, South Carolina, facility.
“The discrepancy between the positive investment figure and the negative employment figure reflects developments at two battery projects in Georgia and North Carolina, where companies announced job reductions without corresponding decreases in planned investment,” the report said.
It added that the top five states for renewable energy manufacturing investment from 2000 though Q1 2026 are Georgia, Michigan, North Carolina, Kentucky and Tennessee. Consequently, these states were most affected by the job cuts.
“Although net clean investment in the first quarter of 2026 was positive, American renewable energy manufacturing continues to face significant challenges and cancellations continue,” the report said.
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“The dollar-per-kilowatt growth is going to be very healthy in the second quarter of this year,” CEO Scott Strazik said of turbine sales. The company also saw big jumps in orders for grid and wind power equipment.
The reliability watchdog is concerned about a series of “widespread and unexpected” customer-initiated load reductions in 2024 and 2025 during which 1,000 MW or more dropped off the bulk power system.
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In the first part of a two-phase plan, the grid operator would help match buyers, including data centers and other large loads, with sellers of new generation. States and utilities may seek to lower the procurement target over affordability concerns.
The utility will supply a 1.4-GW Oracle data center under construction now, and it has submitted contracts to regulators for a 1-GW Google project also in the works.
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