The Inflation Reduction Act of 2022 is ushering in a new decade of U.S. clean energy manufacturing and installation.
Based on tracking by nonpartisan trade group Environmental Entrepreneurs (E2), since the passage of the Inflation Reduction Act (IRA) of 2022, over 274 major clean energy projects have been announced across 41 states, leading to over $110 billion in private investment announcements and the creation of over 95,000 jobs.
Less than two years from its passage, the $369 billion in climate and energy spending contained within IRA has already attracted unprecedented levels of investment and job creation.
“Every month we are seeing the spark ignited by the Inflation Reduction Act and other federal policies continue to heat up the economies of local communities nationwide. These policies are working – and now so is America,” said Bob Keefe, executive director, E2. “Clean energy is driving the biggest economic revolution we’ve seen in generations. That’s good news for workers and local economies in red states, blue states and in every region of America.”
Included within IRA are incentives supporting both the supply and demand side for clean energy technologies. This includes a 30% investment tax credit (ITC), clean energy generation production tax credits (PTC), and manufacturing production tax credits. These credits can be transferred sold to businesses or individuals with a tax appetite, further spurring clean energy economic activity.
IRA also provides tax credit bonus adders for projects that use U.S.-made components or are located in low-income communities or communities that disproportionately depend on fossil fuel production in their local economy. The Environmental Protection Agency is also administering the $7 billion Solar For All program, which extends solar access to low-income communities.
E2 reported that in 2023, projects announced in 2023 combine for $64 billion in private investment and the creation of over 61,000 jobs. North Carolina received the most announced capital investments with $11.2 billion announced, followed by Georgia ($6.9 billion), Indiana ($5.8 billion), South Carolina ($5.7 billion), Michigan ($5.7 billion), and Nevada ($5.5 billion).
More than 80% of all projects and 95% of capital investments announced in 2023 were in the manufacturing industry, said E2.
In December, the most notable new manufacturing investment came from Waaree Energies, which announced a $1 billion solar cell and module manufacturing plant in Texas. The 3 GW plant is expected to bring over 1,500 jobs.
E2’s dashboard tracking investment in energy storage, clean vehicles, grid and electrification, solar, wind, and other clean energy technologies can be found here.
