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Summary:

Clean energy and clean vehicle jobs in America grew 4 percent in 2022, bringing the total number of workers in renewable generation, energy efficiency, clean vehicles, battery and storage, grid modernization, and biofuels to more than 3.3 million. Clean energy now employs over 40 percent of all energy workers in America.

The increase in 2022 marked the full workforce recovery for multiple sectors following the earlier impacts of the COVID-19 pandemic. Renewable energy, biofuels, and storage and grid modernization sectors officially surpassed their sectors’ pre-pandemic job numbers in 2022 while clean vehicles—which continued to add jobs during the pandemic—kept up its industry-leading growth pace.

Approximately 127,000 jobs were added across all sectors—accounting for more than 3 percent of all U.S. jobs added in 2022. Over the past two years clean energy jobs have grown by more than 10 percent, faster than the overall energy industry and overall U.S. employment.

It’s a trend that’s expected to continue as the clean energy sector begins to feel the full impact from historic investments passed in the Inflation Reduction Act (IRA). Clean energy and clean vehicle companies announced 210 major projects across 38 states in the year after the IRA was signed into law on August 16, 2022.² The numbers in this report do not reflect the estimated 74,000 jobs to be created by the projects announced.

Key Findings

• The states with the most clean energy jobs remained unchanged from 2021, led by California and Texas with over 500,000 and 250,000 jobs respectively, followed by New York, Florida, Michigan, Illinois, Massachusetts, Ohio, and North Carolina all with at least 100,000.
• Employment increased by more than 6 percent in five states (Tenn. Ky., Okla., N.J., N.M.), while the sector accounted for more than 5 percent of all 20 jobs in Vermont and over 3 percent in four other states (Mass., Wyo., Md., R.I.).
• Los Angeles County (Calif.), Harris County (Texas), Orange County (Calif.), Cook County (Ill.), and San Diego County (Calif.) led all counties for the most clean energy jobs with at least 50,000 jobs in each. 
• Kenedy County (Texas), Pulaski County (Ill.), and Storey County (Nev.) had the highest density in clean energy employment while Dewey County (Okla.), Hoke County (N.C.), and Hopewell County (Va.) had the fastest growth rates. 
• Clean energy sectors set record employment highs two years after the pandemic-fueled unemployment crisis cost the industry more than 620,000 jobs. 
• Energy efficiency remained the single-biggest employer across the entire energy sector, employing more than 2.2 million Americans, adding more than 50,000 jobs in 2022 (up 2.3%). 
• 1.6 million construction jobs were supported by clean energy in 2022, which would account for about 1 in every 7 construction workers nationwide. 
• Jobs grew across all subsectors of renewable energy, led by wind energy (7.5%) and geothermal (5.0%). In all, nearly 20,000 jobs were added in 2022 and over 535,000 Americans now work in renewable energy sectors—an 8.5% increase since 2021. 
• The storage and grid modernization sector added over 8,000 jobs in 2022, up 5.8%. Jobs making power grids more resilient and able to handle more renewable energy led the sector, growing 11.6% followed by battery and energy storage (6.2%). Since 2021, the sector increased employment by 9.8%. 
• Clean vehicle makers continue to lead all clean energy sectors in growth, adding nearly 50,000 jobs. Electric vehicles (EVs) led the sector, adding nearly 30,000 jobs alone in 2022 (26.8%), followed closely by hydrogen and fuel cell vehicles (25.2%). Since 2021, every clean vehicle subsector has increased employment by over 27% with EVs and hydrogen and fuel-cell vehicles seeing job growth rates over 60%. The sector also continued to outgrow the gas and diesel-powered vehicle industry (1.6%). 
• The smallest clean energy sector, biofuels, added over 1,000 jobs in 2022. Since 2021, the sector has increased employment by 8.4% and over 3,000 jobs. 

2023 Clean Energy Employment Toplines

FOCUS: It’s almost harvest time (for electric tractors)

Companies in business for nearly two centuries are as dependable as they are shrewd. They anticipate customers’ needs, innovate, and deliver. And they do this again and again and again.

That’s why John Deere’s Aug. 14 announcement that it’s building a plant to produce more batteries and chargers is noteworthy – it’s the latest sign that America’s economy is rapidly electrifying, from the farmer’s field on up. 

Deere’s was one of 18 major clean economy announcements that companies made across the country last month, amounting to 9,529 new jobs and more than $6 billion in investments. All told, since the Inflation Reduction Act was announced just over a year ago, E2 has tracked 223 projects across more than three-dozen states amounting to about 75,000 jobs and $88 billion in investments.

A welder at John Deere’s plant in Kernersville, N.C. The iconic manufacturer announced in August it will expand its operations there to make batteries and chargers. (Photo courtesy of John Deere)

Deere’s new 115,000 square-foot plant will be in Kernersville, N.C., adjacent to another the company has operated since 1988. The facility is expected to help Deere, founded in 1837, produce more than 20 electric and hybrid electric models for the construction market by 2026, including excavators, forklifts and wheel loaders. It could also help roll out an autonomous, battery-powered electric utility tractor for the agricultural market, also by 2026.

 “[W]e are prioritizing the development of a robust charging ecosystem and battery portfolio that can support and sustain the long-term adoption of electrification across a wide variety of applications,” said Pierre Guyot, SVP of John Deere Power Systems and Chairman of Kreisel, an Austrian battery company in which Deere acquired a majority stake last year.

The $69 million Deere project is expected to create about 50 jobs in North Carolina, with an average annual pay of more than $60,000. Occupations include assemblers, material handlers, packagers and quality inspectors.

The announcement was part of another big month for EV projects in the South. Georgia, Alabama and Tennessee each had at least one major EV project announcement. There were also billion-dollar solar manufacturing announcements in both Louisiana and New Mexico; grid announcements in Waukesha, Wisc., and Nacogdoches, Texas; and Singapore-based Bila Solar said it’s investing $35 million to repurpose an old Eli Lilly factory in Indianapolis, where Bila will also establish its new U.S. headquarters, creating some 240 new jobs.

OPPORTUNITIES

Biden-Harris administration announces $30 million to build up domestic supply chain for critical minerals

The Energy Department announced up to $30 million to help lower the costs of the onshore production of rare earths and other critical minerals and materials from domestic coal-based resources, including coal, coal waste and associated by-products. Rare earths and other critical minerals are key to U.S. manufacturing of clean energy technologies – such as solar panels, wind turbines, electric vehicles, and hydrogen fuel cells. Extracting these materials creates good-paying jobs in communities that have historically produced fuels and electric power from fossil energy resources, supporting the Biden-Harris Administration’s commitment to revitalize energy communities. Read more.

 Biden-Harris administration announces $100 million to transform climate pollution into sustainable products

The Energy Department is making $100 million available to support states, local governments and public utilities in purchasing products derived from converted carbon emissions. The goal is to speed up adoption of advanced carbon management technologies, creating a market for environmentally sustainable alternatives in fuels, chemicals and building products sourced from captured emissions from industrial and power generation facilities. Read more. 

DOE announces $46 million to boost energy efficiency and slash emissions from buildings

DOE’s Buildings Energy Efficiency Frontiers and Innovation Technologies (BENEFIT) funding opportunity will provide $46 million to 29 projects across 15 states. The funding will support building technologies and retrofit practices that will create healthier households and communities and reduce energy waste. Read more.

Department of Energy announces up to $4.7 million for manufacturing cybersecurity innovation

The U.S. Department of Energy announced a new request for proposals (RFP) for up to $4.7 million to enhance cybersecurity within American manufacturing. This RFP, which will focus on energy efficient cybersecure manufacturing, is soliciting projects within three industrial use cases – industrial control systems, secure industrial digitization and industrial additive manufacturing. Read more.

TOTAL PROJECTS BY STATE

Alabama (5)

Arizona (8)

Arkansas (2)

California (10)

Colorado (7)

Connecticut (4)

Florida (2)

Georgia (21)

Illinois (4)

Indiana (7)

Iowa (2)

Kansas (1)

Kentucky (5)

Louisiana (4)

Maine (1)

Maryland (1)

Massachusetts (6)

Michigan (18)

Minnesota (3)

Mississippi (2)

Missouri (1)

Nevada (6)

New Hampshire (1)

New Mexico (3)

New York (10)

North Carolina (10)

Ohio (13)

Oklahoma (4)

Oregon (1)

Pennsylvania (2)

Puerto Rico (1)

South Carolina (18)

Tennessee (13)

Texas (14)

Utah (1)

Vermont (1)

Virginia (2)

West Virginia (2)

Wisconsin (6)

Summary:

One year after the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, private industry has announced at least 210 major new clean energy and clean vehicle projects across the country, according to E2’s findings. Based on publicly available information from 178 of the 210 announcements that included new jobs and/or investment estimates, if completed the projects would create at minimum 74,181 new jobs and bring in $86.3 billion in private investments.

These announcements are expected to drive a major boost in new clean energy jobs in the coming years, compared to clean energy employment growth before the IRA. Not including 2020 job losses fueled by COVID-19 shutdowns and ensuing economic crisis, clean energy has averaged an annual increase of 117,000 jobs since 2018. The jobs and investments estimated in the more than 200 announcements would represent a sizable increase in annual employment growth in clean energy and is indicative of a coming  wave of job gains on the horizon unequaled in the history of the clean energy sector — presuming normal employment gains based on overall market growth, projects announced and in development before the IRA was signed, and smaller investments and new projects that are unable to be tracked by this analysis. In addition, only 142 of the announcements included a temporary and/or permanent job creation estimate — leaving one-third of new announcements without any employment estimates as of the time of this analysis.

Highlights

* 54 of the 208 announcements did not include investment estimates and 68 did not include job estimates.

• Electric vehicle and battery manufacturing accounted for more than half of all new projects, with 115 battery and EV factories or expansions announced.
• Renewable energy companies announced 44 solar panel and equipment factories and major solar projects, and at least 18 wind turbine factories or major wind products.
• Red states and Republican congressional districts are benefitting the most from the IRA. More than half of all projects were in Republican districts, and 18 of the top 20 congressional districts for clean energy investments are held by Republicans. About 60 percent of all jobs and investments announced were in Republican districts.
• About 28 percent of congressional districts are home to at least one announced project.
• The top congressional districts for clean energy investments are North Carolina’s 9th district with nearly $9.9 billion, represented by Republican Rep. Richard Hudson, Georgia’s 11th congressional district with $6.6 billion, represented by Republican Rep. Barry Loudermilk, and Nevada’s 2nd congressional district with $6.6 billion, represented by Republican Rep. Mark Amodei.
• The top congressional districts that would see the largest clean energy employment growth from new clean energy projects are Georgia’s 11th district with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk, Nevada’s 2nd congressional district with 5,050 jobs, represented by Republican Rep. Mark Amodei, and South Carolina’s 2nd congressional district with 4,600 jobs, represented by Republican Rep. Joe Wilson.
• The top congressional districts that are home to the most projects announced are Ohio’s 9th congressional district with 6 projects, represented by Democratic Rep. Marcy Kaptur, and Georgia’s 1st congressional district with 5 projects, represented by Republican Rep. Earl Carter. Six other districts are home to four announced projects.
• Foreign companies led or were involved with nearly 100 announced projects. U.S.-based companies led or were involved with 118 announced projects.
• South Korean companies announced the most projects – more than two dozen. Companies based in Michigan, California, and North Carolina led announcements from domestic-based companies.
• Manufacturing accounted for 171 projects, 91 percent of investments and 95 percent of jobs announced.
• Seven states are home to 10 or more projects, including Georgia, South Carolina, Michigan, Ohio, Tennessee, Texas, and New York. A total of 31 states are home to at least 2 projects.

Previous Clean Economy Works Monthly Reports:

• Clean Economy Works – July 2023
• Clean Economy Works – June 2023
• Clean Economy Works – May 2023
• Clean Economy Works – April 2023
• Clean Economy Works – March 2023
• Clean Economy Works – February 2023

FOCUS: The Great American EV Road Trip

This summer, more Americans are hitting the open road in an electric vehicle (EV) than ever before. For evidence of the EV market’s expansion, look to two places.

The first is the lane next to you. About 1 million new EVs are expected to be sold in the U.S. this year, a record. In the second quarter alone, Americans bought 300,000 new EVs, led by Tesla, Chevrolet and Ford. That’s nearly 50 percent more than the second quarter a year ago. According to the U.S. Department of Energy, Americans drove 19 billion miles in light-duty plug-in EVs in 2021, 57 percent higher than the previous year. In 2023, those miles are certain to increase by billions more.

Another good place to look for EV market growth is the list of more than 200 projects E2 has tracked since the Inflation Reduction Act (IRA) was signed into law last summer. Of those announcements, more than 90 are related to EVs, amounting to some 43,000 new jobs and more than $51.5 billion in investments across 18 states. Twelve announcements came from the UAW stronghold of Michigan alone – more than any other state, suggesting many jobs we’ve tracked provide good union wages that can sustain growing families.

Last month, six of the 10 projects E2 tracked were related to EV manufacturing. For example, Kia said it will soon start production of its three-row, plug-in electric SUV in Georgia, creating nearly 200 jobs and generating about $200 million in private investments. In Tennessee, meanwhile, a major hub for Ford suppliers – the so-called “BlueOval City,” after the carmaker’s iconic nameplate – will add another 1,050 American jobs. The governors of Georgia and Tennessee, both Republicans, lauded the clean economy projects in their respective states, calling them “generational” job creators that will provide “new opportunities for families to thrive.”

With all these new EVs hitting the road, where will they charge? Currently, there are 62,700 public EV charging stations across the U.S. The Bipartisan Infrastructure Law includes $7.5 billion to help expand that network, especially along the interstates and other major highways where most long-distance trips occur. Earlier this year, the White House said it wants 500,000 charging stations nationwide by 2030 – about eight times what’s currently available.

SPOTLIGHT

DREW GRAVITT

Director, Strategic Partnerships
Schneider Electric
Mt. Pleasant, South Carolina

You work on microgrids at Schneider Electric. What are some trends you’re seeing?

I’ve been with Schneider about 15 years. One industry challenge is that a lot of the technology that a homeowner or a commercial industrial business uses to install renewables or microgrids has been heavily customized and engineered. That’s starting to change. Now, you’re seeing a lot of standardization, a lot of products and solutions coming in a more packaged format. This evolution is making microgrids, and the renewables that power them, more accessible to all of us. It does this by driving down manufacturing, installation and service costs allowing consumers and utilities see meaningful financial returns while lowering their carbon footprint.

A big focus of this newsletter is how federal clean energy policies and investments are benefiting the economy. How is Schneider benefiting from the Inflation Reduction Act?

This pre-dates the IRA, but we worked closely with Duke Energy to set up a microgrid for Montgomery County, Md. The county had been hit by major storms in recent years that kept knocking out power, and it wanted to enhance resiliency for critical infrastructure like a correctional facility and the county’s public safety headquarters. We came up with a concept that relied on technologies like solar and CHP, developed the project, validated the system and brought together the various renewable energy generation technologies so they could work in sync. We already see the IRA bringing more projects like this to fruition.

You live further south, down in South Carolina. What kinds of impacts have federal clean energy policies had on your state?

I live in Mt. Pleasant, S.C., which is just outside Charleston. Clean energy projects are popping up all over the place, including EV charging stations. It really feels like South Carolina has a great opportunity to lead one of the biggest economic transitions our country has ever seen.

Specifically, what kinds of projects have you been reading about?

There have been plenty. I know E2 tracked a big EV announcement this month outside of Columbia, but that’s just the latest one in my state. BMW is also investing $1.7 billion to expand its Spartanburg factory to build electric cars. Albemarle Corp. is building a new $1.3 billion lithium processing plant in Chester County. Volkswagen is planning a new electric vehicle factory in Blythewood employing about 2,000 workers. Cirba Solutions is constructing a new $300 million battery materials company in Orangeburg that will create another 300 jobs.

What has struck you about these projects?

I’m not particularly interested in politics, but witnessing the transformative impact of recent federal climate and clean energy legislation on my industry and our state, I have to say I have come to appreciate the power of good policy.  These are lighthouse projects that will demonstrate what’s possible and draw more businesses, and people, into the growing clean energy economy.

Do you feel this progress could be at risk?

In the spring, it was disheartening to watch House Republicans vote to undermine clean energy investments as part of Speaker McCarthy’s federal debt ceiling bill, plus a separate solar panel policy provision that led to layoffs in solar and could result in retroactive fines for completed projects. These were shortsighted partisan games. In South Carolina, it was pretty clear our federal lawmakers were sending the wrong market signals to American companies and workers. The last thing we need is another lawmaker in South Carolina to turn their back on the jobs, cost savings and economic resiliency that clean energy delivers to our state. We have a massive economic opportunity, and we can’t let it slip away. Lawmakers need to put aside partisan politics and prioritize their constituents. In South Carolina, that means prioritizing our economy and our environment by standing behind policies like the IRA and the Bipartisan Infrastructure Law.

TOTAL PROJECTS BY STATE

Alabama (5)
Arizona (8)
Arkansas (2)
California (8)
Colorado (7)
Connecticut (3)
Florida (2)
Georgia (20)
Illinois (3)
Indiana (6)
Iowa (2)
Kansas (1)
Kentucky (5)
Louisiana (3)
Maine (1)
Maryland (1)
Massachusetts (5)
Michigan (18)
Minnesota (3)
Mississippi (2)
Missouri (1)
Nevada (5)
New Hampshire (1)
New Jersey (1)
New Mexico (2)
New York (11)
North Carolina (9)
Ohio (13)
Oklahoma (4)
Oregon (1)
Pennsylvania (2)
South Carolina (18)
Tennessee (12)
Texas (12)
Vermont (1)
Virginia (3)
West Virginia (2)
Wisconsin (4)

OPPORTUNITIES

Biden-Harris administration launches historic $20 billion in grant competitions to create national clean financing network

The U.S. Environmental Protection Agency (EPA) launched two Notices of Funding Opportunity for $20 billion across two grant competitions under the $27 billion Greenhouse Gas Reduction Fund, an Inflation Reduction Act program central to President Biden’s Investing in America Agenda and environmental justice goals. Together, these competitive grant opportunities will mobilize private capital into clean technology projects to create good-paying jobs and lower energy costs for American families, especially in low-income and disadvantaged communities, while cutting harmful pollution to protect people’s health and tackle the climate crisis. Read more.

Biden-Harris administration to jumpstart clean hydrogen economy with new initiative to provide market certainty, unlock private investment

The U.S. Dept. of Energy (DOE) released a Notice of Intent, which includes a Request for Information, to invest up to $1 billion in a demand-side initiative to support the Regional Clean Hydrogen Hubs, or H2Hubs. Funded by the Bipartisan Infrastructure Law, the H2Hubs program will help form the foundation of a national clean hydrogen network vital to reducing emissions from some of the most energy-intensive sectors of our economy, including industrial and chemical processes and heavy-duty transportation. Read more.

USDA announces new investments to improve measurement, monitoring, reporting and verification of greenhouse gas emissions

Agriculture Secretary Tom Vilsack announced the U.S. Dept. of Agriculture will invest $300 million to improve measurement, monitoring, reporting and verification of greenhouse gas emissions and carbon sequestration in climate-smart agriculture and forestry. Read more.

DOE announces $150 million for states to train residential energy efficiency contractors

The DOE announced funding for states to begin training a new generation of residential energy contractors. The State-Based Home Energy Efficiency Contractor Training Grants Program will provide $150 million in grants for states to reduce the cost of training, testing and certifying residential energy efficiency and electrification contractors. This funding will attract and educate new workers in the industry, train and empower existing workers, and support business owners to make homes healthier and more energy efficient. Read more.