Clean energy developers announced 12 gigawatts (GW) and more than $19 billion worth of investments in the first quarter of this year, ahead of the expiration of some federal clean energy tax credits for solar and wind, but project cancellations also accelerated ‘sharply,’ according to new industry analysis.

The national, nonpartisan business group E2 released its Q1 analysis of large-scale clean energy project announcements, cancellations, closures, and downsizings since the passage of industry tax incentives in 2022. The updated tracking includes location, company, sector, and industry details for all announcements and project abandonments, along with the job, megawatt size, and investment totals from each project. As with previous monthly analyses, tables detailing project totals since 2022 by sector, industry, state, and congressional districts are also included.

How Much Clean Energy Has Been Canceled?

Overall, 45 projects, 41,000 jobs, and $14 billion in investments were canceled in Q1 2026. On the bright side, the 66 generation projects announced so far in Q1 are twice the total amount of projects announced in 2025 as a whole, per E2. The surge in new projects came as companies raced to begin construction before federal clean energy tax credits for solar and wind are phased out under recent federal policy changes from the Trump administration.

Project cancellations and downsizing continued to accelerate, as nearly 8 GW of generation capacity and more than $14 billion in planned investments were canceled, closed, or downsized through March. The number of projects canceled or downsized so far this year already represents more than half of all generation capacity losses recorded during the entirety of 2025.

“Developers are clearly rushing to get projects moving before federal tax credits expire, but the sharp rise in cancellations shows how much uncertainty is still hanging over the market,” assessed Michael Timberlake, E2 communications director. “Federal policies designed to stifle clean energy are killing jobs, investments, and projects at an increasing rate. What’s more, these mounting project cancellations mean we are losing badly needed new electricity sources that could power millions of homes and help reduce rising power bills.”

By the numbers

Electric vehicle (EV) and battery manufacturing remained the most volatile segment of the clean manufacturing sector, E2 said. Four of the seven manufacturing facilities canceled or downsized during Q1 2026 were related to EV or battery production. Since 2025, the EV and battery sector has seen 28 projects canceled, closed, or downsized.

However, grid and transmission equipment manufacturing remained the most resilient sector. With over $6.4 billion in active development across 58 projects, E2 tracked only one grid-related project cancellation since 2022.

Solar developments accounted for the most new announcements and cancellations in the generation space. Solar or solar-plus-storage projects represented 37 of the 54 new generation projects announced in Q1 2026, while 25 of the 38 canceled generation projects were solar-related.

Republican-held congressional districts are still seeing the highest number of both clean energy investment and project losses, E2 noted. Thirty-one of the 38 projects canceled in Q1 were in GOP-held districts, representing $10 billion in canceled investments. Democrat-led districts saw a $2.1 billion loss in investment.

Texas is, perhaps unsurprisingly, still the dominant market for new clean energy development, with 10 new projects announced in Q1 2026. The Lone Star state also saw 12 of the nation’s 38 canceled projects, including several of the nation’s largest canceled solar and storage developments.

Are the good times over?

The pace of new project development is still slower than the early days of clean energy policies in 2022, E2 noted. Between 2022 and 2024, developers announced more than 720 utility-scale generation and storage projects nationwide. Since the start of 2025, only 82 new projects have been announced.

Manufacturing investment also continued to slow in early 2026. Companies canceled or downsized roughly $1.4 billion in manufacturing projects during the quarter while announcing just $750 million in new investments — “far below the pace” seen in 2022 through 2024, E2 noted.

The previous E2 analysis covering the entirety of 2025 showed a drastic slowdown overall in the sector, tracking over $35 billion in clean energy project cancellations throughout the year, along with eliminating 38,000 current and future jobs.

Read the full report here.