Recent IMPLAN analysis reveals that the Department of Energy’s proposed funding cuts to wind and solar projects could significantly dampen U.S. economic growth, threatening more than $500 million in annual GDP and approximately 3,500 jobs across the country.

The Potential Cost of Pulling Back on Clean Energy

According to reports that the Department of Energy plans to reduce wind project funding from $137 million to $30 million and solar project funding from $318 million to $42 million, IMPLAN economists modeled the potential ripple effects these cuts could have across the national economy.

Clean energy investments stimulate activity across U.S. manufacturing, supply chains, and local economies. Using IMPLAN’s industry-leading economic modeling system, the analysis shows that the proposed reductions could dramatically slow growth in sectors that produce the components and materials essential to renewable energy development.

What the Data Shows

Wind Turbine Manufacturing

• Every $100 million in turbine manufacturing generates $130 million in GDP each year.
• That activity supports more than 850 jobs, including:
  - 200 direct jobs in turbine manufacturing
  - 300 supply chain jobs
  - 350 jobs supported by household spending

Storage Battery Manufacturing

• Every $100 million in battery manufacturing generates $113 million in GDP annually.

• That activity supports more than 750 jobs, including:
  - 210 direct jobs in battery manufacturing
  - 250 supply chain jobs
  - 290 jobs supported by household spending

When applied to the Department of Energy’s proposed cuts, these figures illustrate the scale of the potential economic contraction. The planned $137 million reduction in wind funding could translate into a loss of roughly $178 million in GDP and more than 1,100 jobs nationwide. Meanwhile, the $318 million reduction in solar funding could result in a GDP loss of around $359 million and approximately 2,400 jobs.

Together, these cuts put an estimated $537 million in GDP and 3,500 U.S. jobs at risk, spanning manufacturing floors, supply chains, and the local businesses that rely on workers’ spending.

More Than an Environmental Issue

The findings make clear that cuts to renewable energy funding are not only environmental but also economic. Clean energy manufacturing is among the most powerful economic multipliers in the U.S. today, supporting both blue-collar manufacturing jobs and skilled trade employment across multiple regions.

“These findings underscore that the Department of Energy’s proposed reductions are more than a budget-line cut; they represent a direct suppression of a powerful, nationwide economic engine,” said Bjorn Markeson, Ph.D., Economist at IMPLAN. “When funding for wind and solar projects is curtailed, it immediately chokes the demand for domestic manufacturing, impacting everything from the steel supply chain to local construction payrolls. The takeaway for policymakers and communities is clear: clean energy investment is a job creator, and these cuts threaten thousands of high-wage jobs and hundreds of millions in potential GDP.”

The Bottom Line

As the clean energy transition accelerates, continued investment in wind and solar projects is critical not only for reducing emissions, but also for sustaining economic growth and employment across the nation. With over half a billion dollars in GDP and thousands of jobs at stake, IMPLAN’s analysis highlights the far-reaching economic consequences of scaling back on renewable energy funding.

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