Developers have started building solar fields, wind farms and renewable energy storage plants across the state, expecting to bring thousands of jobs spurred by federal tax incentives and billions in private investment.
But earlier this month, President Donald Trump signed his “Big, Beautiful Bill” into law, repealing several tax incentives for solar, wind and clean energy manufacturing, just as the sector was taking off.
Created by 2022 federal legislation, those credits helped drive millions of federal dollars into West Virginia’s growing clean energy economy.
And without them, the state stands to lose nearly 10,500 jobs by 2030, according to an analysis from Energy Innovation Policy & Technology, a clean energy think tank.
“You can look at the success we’ve had here in West Virginia utilizing these tax credits to create jobs, growth and opportunity,” said Mitch Carmichael, former economic development secretary and Republican state Senate president.
The incentives helped keep utility bills down for residential customers, but he said they got caught in a “climate ideology debate.”
“Why on Earth would anyone want to raise the cost of energy?” said Carmichael, who lobbied federal lawmakers and President Trump to preserve the incentives.
Sens. Shelley Moore Capito and Jim Justice, R-W.Va., along with Reps. Carol Miller and Riley Moore voted to phase out the tax incentives.
In an email, a Capito spokesperson pointed to her efforts to preserve hydrogen tax credits. The rest of West Virginia’s congressional delegation did not respond to questions.
Josh Sword, president of the WV-AFL-CIO, said West Virginia was set to gain the most from these clean energy projects, as the state historically relied on coal and natural gas.
“In a lot of ways, we will be starting from scratch,” he said.
A growing industry is at risk
West Virginia has one of the smallest but fastest-growing clean energy workforces in the country.
More than 10,000 West Virginians now work in wind, solar, electric vehicle production and battery storage, according to the U.S. Department of Energy Jobs Report.
And the Inflation Reduction Act was key to that growth. The bill was a nearly trillion-dollar investment to combat inflation, rising prescription costs and climate change.
The bill included tax credits for companies investing in renewable energy. The credits were aimed at advanced manufacturing, hydrogen production and clean electricity.
Since its passage, over $5 billion of investment and more than 5,000 jobs have been announced in West Virginia’s growing clean energy and transportation sector.
About 17 facilities have been in development, and seven have already begun manufacturing, according to data from the Clean Investment Monitor.
The phaseout of some of the credits under the Trump administration is set to begin immediately. Other solar and wind energy projects will have to speed up development or risk missing out.
Repealing certain clean energy tax credits has raised concerns with businesses, said Steve Roberts, president of the West Virginia Chamber of Commerce. But he said many of the incentives will remain in place long enough to ease a transition.
“Tax credits can absolutely be a factor in attracting or retaining business in West Virginia,” he said.
Just last month, Clearway Energy announced a $400 million wind development in Tucker and Grant counties to power thousands of homes by 2027, marking continued growth in the sector.
Meanwhile, in Jackson County, BHE Renewables is building a massive solar microgrid to store energy and to help power a new titanium manufacturing plant.
The $500 million investment is also set to be completed by 2027. If construction begins before a newly-imposed deadline, the project would still qualify for solar or clean manufacturing tax credits.
Another one of those clean energy projects, Form Energy’s factory in Weirton, is already reshaping the economy of the Northern Panhandle.
Two decades after the closure of the Weirton Steel Mill, the roar of blast furnaces has been replaced by the hydraulic hiss of robotic arms.
“This town was built in iron, and now it’s being rebuilt on it,” Ray Larkey, one of more than 400 employees, said in a promotional video.
The plant produces iron-air batteries, a new technology aiming to reshape how renewable energy is stored. The company is one of the largest clean energy employers in the state and expects to supply 750 jobs by the end of the decade.
As the company is preparing to deploy its first commercial-scale battery system in the coming months, Form Energy spokesperson Sarah Bray said it has not yet received federal tax credits.
“It’s worth noting broadly speaking that start-stop policy does not work for businesses making long-term investments in infrastructure, equipment and workforce development,” she said.