Clean Economy Works | IRA Two-Year Review

Summary:

Two years after the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, companies have announced at least 334 major new clean energy and clean vehicle projects across the country, according to E2’s findings. Of the announcements, 278 included estimates on the number of jobs the projects are expected to create and/or investment amounts. Based on this information, the projects, if completed, would create 109,278 new jobs and bring in $126 billion in private investments.

The 118 announcements in the IRA’s second year are expected to create a combined 34,600 jobs. This extends a wave of IRA-fueled job gains unequaled in the clean energy sector’s history.

The number of major IRA-related clean energy projects announced during the past twelve months declined from the previous year, when 216 projects were announced (211 initially reported). This decline in announcements, while not unexpected, comes amid the uncertainty of the 2024 elections and more than 40 attempts to roll back or reduce parts of the IRA by the U.S. House.

Still, the clean energy projects, jobs and investments related to the IRA are bringing new opportunities and economic benefits to communities across the country. Forty states and two out of three congressional districts are home to at least one announcement. Growth from post-IRA projects tracked by E2 is particularly pronounced in Republican-led districts and states in the South. Nearly 60 percent of the announced projects – representing 85 percent of the investments and 68 percent of the jobs – are in Republican congressional districts. This despite the fact that no Republican voted for the legislation.

Sectors throughout the clean energy industry are expanding. Over the past two years, automakers and their suppliers have announced 132 new or expanded electric vehicle and battery plants and related factories in 23 states, including 39 clean vehicle manufacturing projects in the past year. Solar panel equipment manufacturers are building or expanding 53 factories in 23 states (24 projects in the past year). Renewable energy operators are planning 24 new large-scale wind and solar generation projects across 22 states (10 projects in the past year), while at least 51 new battery/storage projects are in development (19 in the past year, in nearly as many states).

Highlights

* 99 of the 334 announcements did not include investment estimates and 98 did not include job estimates.

• More than 90 percent of all projects announced since the IRA are in the manufacturing sector.
• Five states are home to 20 or more projects: Michigan, Georgia, South Carolina, Texas and North Carolina. Six others are home to at least 10: Ohio, Tennessee, California, New York, Indiana and Arizona. Three-dozen states are home to at least two projects.
• Clean vehicles accounted for more than a third of all projects announced within the past year (45 projects announced).
• Renewable energy companies announced 31 solar panel and equipment factories and major solar projects in the IRA’s second year, and at least four wind turbine factories or major wind projects.
• Red states and Republican congressional districts are benefitting the most from the IRA. In its full two-year history, more than half of all projects were in Republican districts, and 19 of the top 20 congressional districts for clean energy investments are held by Republicans. Nearly 40 percent of all 435 U.S. 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 11^th congressional district with $6.6 billion, represented by Republican Rep. Barry Loudermilk; and Nevada’s 2^nd 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 North Carolina’s 9th district with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk; Nevada’s 2^nd congressional district with $5,050 jobs, represented by Republican Rep. Mark Amodei; and South Carolina’s 2^nd congressional district, represented by Republican Rep. Joe Wilson.
• The congressional districts that are home to the most projects announced are: Ohio’s 9^th congressional district with eight projects, represented by Democratic Rep. Marcy Kaptur; Georgia’s 1^st congressional district with six projects, represented by Republican Rep. Earl Carter; North Carolina’s 9^th congressional district with six projects, represented by Republican Rep. Richard Hudson; and South Carolina’s 5^th congressional district with six projects, represented by Republican Rep. Ralph Norman.
• Foreign companies led or were involved with about 160 projects announced since the IRA became law – nearly identical to the number of announced projects from U.S.-based companies.
• South Korean companies have announced the most projects – about three-dozen in the past two years. Companies based in Michigan and California led announcements from domestic-based companies, with 22 each.

Previous Clean Economy Works Monthly Reports:

• Clean Economy Works – June 2024
• Clean Economy Works – May 2024
• Clean Economy Works – April 2024
• Clean Economy Works – March 2024
• Clean Economy Works – February 2024
• Clean Economy Works – January 2024
• Clean Economy Works – December 2023
• Clean Economy Works – November 2023
• Clean Economy Works – October 2023
• Clean Economy Works – September 2023
• Clean Economy Works – One-Year Review
• 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