Texas Sees Surge in Renewable Energy Project Cancellations Due to Tariffs and Subsidy Uncertainty

Texas is experiencing a significant rise in cancellations of renewable energy and battery storage projects over the past two months, driven by Trump-era tariffs and uncertainty surrounding the expiration of federal tax credits. Congress recently ended solar and wind tax credits through the One Big Beautiful Bill Act, set to phase out by 2028. These cancellations are occurring despite Texas anticipating a 70% surge in electricity demand by 2031 due to incoming data centers and other large users.
According to ERCOT data, over 4 gigawatts of battery storage, 3.5 gigawatts of solar farms, and nearly 2 gigawatts of natural gas power plants have been canceled or deemed inactive since April. Battery storage projects are particularly vulnerable, as most battery cells are imported from China, facing heavy tariffs.
The Solar Energy Industries Association warns Texas could lose $50 billion in solar investments over the next decade if federal incentives are repealed. Meanwhile, the Texas Legislature expanded the Texas Energy Fund by $5 billion to attract natural gas plant developers, signaling a shift toward fossil fuels.
Despite these challenges, some companies continue to pursue new projects, with Energy Vault and Jupiter Power recently announcing a 100-megawatt battery storage project. However, May marked the worst month for renewable project development in Texas since 2021, raising concerns about the future of the state’s renewable energy boom.
The cancellations highlight broader challenges for the renewable energy industry, including supply chain disruptions and policy uncertainty, potentially signaling a national trend.

Published: 7/10/2025