Clean energy investments took a serious hit in January, sinking to their lowest point since the Inflation Reduction Act (IRA) supercharged the industry with tax credits and incentives. Growing uncertainty around the future of these policies – especially with the Republican-majority Congress debating potential rollbacks – has led to a sharp drop in new projects and an increase in cancellations, reports E2.
Last month, companies announced just $176 million in new clean energy-related factories and projects. That’s the lowest monthly total since August 2022 and only the fourth time investments failed to reach at least $1 billion, according to E2, a nonpartisan group that tracks investments and projects and advocates for policy that’s good for the economy and the environment.
Meanwhile, clean energy project cancellations are stacking up. FREYR Battery just scrapped plans for a $2.6 billion battery factory in Georgia (rendering pictured), which would have created 700 jobs. Ford CEO Jim Farley also sounded the alarm this week, warning that tariffs and shifting policies could force the automaker to lay off workers.
E2’s Michael Timberlake put it bluntly: “This is the only time we’ve seen private-sector investment in new projects drop to these levels. We hope leaders in Washington recognize what’s at risk for businesses, workers, and communities across the country if this self-inflicted and unnecessary market uncertainty continues.”
January’s $176 million in clean energy announcements were spread across 11 large-scale projects. But most of that came from just one company – GE Vernova – pouring more than $120 million into wind, solar, and electric grid manufacturing in Texas, North Dakota, Pennsylvania, New York, and Florida. GE’s clean energy projects are expected to create 750 permanent jobs.
Michigan saw two new projects, a hydrogen-related factory, and a battery storage recycling operation, bringing its total clean energy project count to 36, the most in the country. Georgia follows closely with 32.
Since E2 began tracking, 372 major clean energy projects have been announced, with total planned investments dropping from $132 billion to $129 billion due to cancellations. Job numbers have also fallen, from 116,450 to 115,900 across 42 states and Puerto Rico. E2 will start officially tracking canceled, stalled, downsized, or at-risk projects in March.
Republican-held congressional districts have been the biggest beneficiaries of clean energy investments, claiming 62% of all projects, 71% of jobs, and 82% of total investments. But they’re also bearing the brunt of the latest wave of cancellations, with more than $2.7 billion in investments and 1,300 jobs lost in January alone – even as six new projects were announced in these districts. Talk about shooting one’s self in the foot.
You can see a full map and a list of announcements here.
Read more: FREYR kills plans to build a $2.6 billion battery factory in Georgia
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