IRA tax credit uncertainty kills $1.4 billion in clean energy projects in May
Impacted states include West Virginia, Alabama and Arizona. The post IRA tax credit uncertainty kills $1.4 billion in clean energy projects in May appeared first on Trellis.
As the Senate continues to debate the fate of the clean energy tax credits established within the Inflation Reduction Act (IRA), the clean energy marketplace continues to take a financial hit. The latest report from E2 and the Clean Energy Buyers Alliance (CEBA) found that $1.4 billion of clean energy projects and factories were canceled in May.
Impacting states including West Virginia, Alabama and Arizona, these numbers were actually an improvement over the loss off projects in April, which saw a $4.5 billion loss.
“The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear,” said Michael Timberlake, E2 communications director, “With renewable energy supplying more than 90 percent of new electricity in America last year, canceled projects will likely mean less available energy and higher electricity prices for consumers and business alike.”
Since the Trump administration came into office, $15.5 billion in new factories and electricity projects have been cancelled, along with roughly 12,000 potential jobs.
Despite these setbacks, the clean technology sector continues to grow, albeit at a much slower pace: $450 million of investments in solar, EV and grid and transmission factories and projects was announced in May. Rivian, for example, announced a $120 million investment to build a 1.2 million square foot supplier park in Illinois.
The post IRA tax credit uncertainty kills $1.4 billion in clean energy projects in May appeared first on Trellis.
