President Donald Trump’s efforts to dismantle the Inflation Reduction Act have rattled clean energy companies that relied on the law’s tax credits to expand U.S. manufacturing.
Benjamin Storrow reports for E&E News.
In short:
- The Inflation Reduction Act spurred investment in U.S. battery, solar, and wind manufacturing, but Trump’s proposed cuts to climate programs and new tariffs on imports have raised concerns about industry stability.
- Some companies, like solar cell manufacturer ES Foundry, remain hopeful but acknowledge risks, as analysts warn that U.S. clean energy factories still depend heavily on imported components.
- Nearly $8 billion in clean energy projects have been canceled in 2025, as uncertainty over tax incentives and potential trade restrictions complicates investment decisions.
Key quote:
“This now will delay things. Of course, the U.S. will then have to push even more in a few years to just attract investment back into the country. It will not be easy.”
— Tim Fischer, vice president at Ramboll, an offshore wind consulting firm
Why this matters:
The U.S. clean energy sector is at a crossroads. The Inflation Reduction Act helped revive domestic manufacturing, but political uncertainty could stall progress. At the heart of the issue is America’s ability to compete with China, which dominates global solar panel and battery production. Even with federal subsidies, U.S. manufacturers have struggled to match China’s low costs. Tariffs may offer some protection, but they also risk driving up prices for American consumers and businesses looking to transition to clean energy.
Beyond the economic impact, a slowdown in clean energy manufacturing could set back the country’s progress on climate goals. The Biden administration had aimed to accelerate the shift away from fossil fuels, with the IRA serving as the cornerstone of that effort. Now, the trajectory is less certain, leaving manufacturers, workers, and climate advocates wondering how far the U.S. will be able to advance its clean energy economy as the Trump administration seems intent on undermining those investments.
Related: House Republicans push to protect clean energy tax credits in budget fight
