Report: One major project lifts U.S. clean energy manufacturing investment as broader slowdown persists

Environmental Defense Fund and Atlas Public Policy today released a new report, The State of Clean Energy Manufacturing in Q3 2026, finding that the third quarter of this year saw the largest net investment gain in U.S. clean energy manufacturing since the start of 2024. However, a single major solar manufacturing project drove much of that growth, masking continued challenges for the broader sector as the Trump administration continues to pursue policies that impede the deployment of affordable clean energy.

Companies announced $11.9 billion in new investments and nearly 20,000 manufacturing jobs during the third quarter. After accounting for cancellations, the sector recorded a net gain of $11.6 billion in investment and 19,220 announced manufacturing jobs. However, nearly $7 billion of the quarter's investment growth came from an increase in the reported value of a proposed $10.1 billion solar manufacturing facility near Houston. Meanwhile, companies have canceled nearly $40 billion in planned investments and more than 54,000 announced jobs since January 2025.

"One major project can boost a quarter's numbers, but it doesn't signal a broader manufacturing recovery," said Grace Hauser, Technical Analyst, Clean Power at Environmental Defense Fund. "American manufacturing needs a steady pipeline of investments to create jobs and strengthen local economies. Nearly $40 billion in canceled projects and fewer new investments raise serious concerns about what's ahead. As a new Congress prepares to take office, lawmakers have an opportunity to support the long-term growth of this industry."

More than 70% of net clean energy manufacturing investment announced between 2000 and Q3 2026, totaling $187.8 billion and nearly 219,000 anticipated jobs, is concentrated in congressional districts represented by Republicans in the outgoing Congress. Georgia leads the nation in cumulative announced investment at $30.3 billion, followed by Texas at $24.7 billion, which jumped from fifth to second following Tesla's expanded investment announcement in the Houston-area solar project. Both states elected Democratic governors in November, while Democrats also regained control of both chambers of Congress. The new leadership will help shape federal and state energy policies that could affect the future of U.S. clean energy manufacturing.

Among the report's key findings:

• One major project drove most of the quarter's investment growth. Companies announced $7.5 billion in solar manufacturing investments and $1.5 billion in transmission and grid equipment investments in Q3. Nearly $7 billion of the quarter's investment growth came from an upward revision to the reported value of the proposed Houston-area solar manufacturing project.
• Large investments remain less frequent. Companies announced just eight clean energy manufacturing investments exceeding $1 billion since January 2025, compared with 24 during the preceding 18 months.
• More factories are operating, but fewer investments are on the horizon. For the first time since tracking began, investment in operating clean energy factories exceeds the combined investment in those planned or under construction, raising concerns about future growth.
• Cancellations continue to threaten jobs and local economies. Companies canceled $296 million in planned investments and 760 announced manufacturing jobs in Q3, bringing total cancellations since January 2025 to $39.9 billion in investment and 54,300 jobs. North Carolina has lost the most announced jobs, followed by Michigan, Ohio, and Illinois.
• Battery manufacturers are shifting to new markets as EV investments slow. Facing weaker-than-expected EV demand and scaled-back projects, manufacturers are expanding into energy storage, defense and other applications.

Figure 2: Net Clean Energy Manufacturing Jobs Announced by Quarter

_{Negative net job values appear in red. Data are from Q1 2022 through Q3 2026. Source: Clean Economy Tracker}

The analysis uses data from Atlas Public Policy's Clean Economy Tracker to track publicly announced investments, cancellations and manufacturing jobs across the U.S. clean energy sector. Additional reports and analysis from EDF's clean power and clean energy manufacturing series are available at edf.org/state-us-clean-energy.

Read the full report: The State of Clean Energy Manufacturing in Q3 2026