Clean energy stocks crashed this week after the Department of Energy terminated $3.7 billion in federal grants tied to Biden-era initiatives in a sweeping rollback that underscores President Trump’s contempt for renewables.
DOE Secretary Chris Wright said the 24 cancelled projects "failed to advance the energy needs of the American people" and would not generate "a positive return on investment of taxpayer dollars."
He emphasized that 16 of the projects were signed between Election Day and Trump's January inauguration, accusing the Biden administration of rushing approvals before handing over power.
The terminated grants, issued through the Office of Clean Energy Demonstrations, primarily supported carbon capture, decarbonization, and other industrial clean energy efforts.
"While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars," Wright said,
"the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return."
The clean energy sector reels
The move hit clean energy names hard.
Having already lost most of its value, Plug Power (PLUG) sank further. Its shares are now down 91.4% since Trump took office and trading at just $0.82, below Nasdaq’s minimum listing requirement.
The company is asking shareholders to approve a reverse stock split and increase its authorized share count in an attempt to stay afloat.
"Without an increase in the number of authorized shares... we may be constrained in our ability to address ongoing needs and pursue opportunities," Plug warned in a letter to investors.
Sunrun Inc. (RUN) has dropped 25.4% since January, while First Solar (FSLR) is down 20.3%.
The American Clean Power Association blasted the cuts and broader GOP agenda. After the House passed its narrow 215-214 budget bill last month to end clean energy tax credits, ACP CEO Jason Grumet called it "a threat to economic and energy security."
"By a margin of one vote, the House voted to retreat in our competition with China for manufacturing jobs," he said. "For the good of our country's energy security and energy bills — this cannot stand."
ACP also noted that a large portion of recent private-sector clean energy investment has gone to red states — making the funding cuts politically risky as well as economically disruptive.
The budget bill now faces debate in the Senate, where Democrats are expected to push back on the measure — though they’ll need GOP defectors to block it.
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