A sweeping policy shift under President Donald Trump is threatening to derail $373 billion in clean energy investments, halting projects and sowing doubt across the solar, wind, and green manufacturing sectors.

The administration has moved quickly to phase out 30% tax credits for solar and wind projects-once central to U.S. climate strategy-and directed agencies to tighten eligibility for remaining incentives. The reversal has prompted a cascade of postponed or reconsidered projects, from solar plants in the Midwest to offshore wind farms in the Northeast.

Singapore-based Bila Solar paused a $20 million expansion in Indianapolis, while Canadian firm Heliene put its $350 million Minnesota factory on hold, citing the "troubling level of uncertainty." Norwegian company NorSun is reevaluating a $620 million solar wafer plant in Tulsa, and two fully permitted offshore wind farms-US Wind's 300 MW Maryland project and Iberdrola's 791 MW New England Wind-may never materialize.

The REPEAT Project estimates the change could drive up household electricity costs by $280 annually in 2035, due to tighter supply. And as data centers surge to power AI infrastructure, Wood Mackenzie projects renewable installations will fall 17-20% over the next decade.

Ben King of Rhodium Group warned, "This bill is not a recipe for continued dominance of the U.S. AI industry," citing $263 billion at risk in solar, wind, and storage investments, plus $110 billion in related manufacturing.

The Trump administration defends the rollback, arguing that overreliance on renewables destabilizes power grids and raises consumer prices-claims widely disputed by analysts and power operators. Groups like Turn Forward, which advocate for offshore wind, argue that timing constraints make even permitted projects difficult to execute.

Adding to the turmoil, Trump directed the Treasury Department to revise the rules for what qualifies as the "beginning of construction," shrinking a four-year tax credit claim window that had offered project developers flexibility.

"Financing of projects is difficult, if not impossible," said Martin Pochtaruk, Heliene's CEO. His firm's planned 600-job facility now hangs in limbo, awaiting clarity on both tax rules and trade policy.

Industry leaders say grid demand is soaring, and every source of new capacity is needed-including fossil fuels and renewables. Consulting firm ICF forecasts a 25% increase in U.S. electricity demand by 2030, driven largely by AI and cloud computing. The policy shift undercuts a clean energy pipeline once poised to meet that demand.

While some manufacturers remain cautiously committed, others warn that investment will flee to more stable policy environments if the current trajectory continues.