Environmental Entrepreneurs tracks ‘spark ignited by the Inflation Reduction Act’

Last year brought a wave of clean energy investments, according to a new analysis.

The US saw nearly 200 new clean energy projects, representing almost $64 billion in investment, announced in 2023, according to an analysis of private sector activity by Environmental Entrepreneurs, or E2, a nonpartisan business group that advocates for clean energy.

The projects that E2 tracked last year run the gamut from new solar panel factories to renewable energy developments. In all, they’re expected to create roughly 61,000 new jobs, primarily in the EV and manufacturing sectors.

Capping off the year, businesses announced eight new “large-scale” clean energy projects in December, according to E2. They’re slated to create approximately 2,600 jobs in five states and represent about $1.8 billion in investment. Most of them are tied to solar and EV manufacturing, including a $1 billion investment by Waaree Energies to build a solar factory in Texas.

“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,” Bob Keefe, E2’s executive director, said in a statement. “Clean energy is driving the biggest economic revolution we’ve seen in generations.”

The IRA went into effect in mid-2022. Since then, E2 has tracked 274 large-scale clean energy projects announced in 41 states and Puerto Rico. The projects represent approximately 95,000 jobs and more than $110 billion in investment. E2 details the project announcements on its website.

Last year, Georgia took the top spot in the country with the most project announcements: 22. North Carolina led capital investment for major clean energy projects, with $11.3 billion. The EV industry led all sectors with 85 announced projects, followed by solar and batteries/storage.

The IRA authorized $500 billion in new federal spending, the Associated Press reported, in part to tackle climate change and incentivize domestic clean tech manufacturing.

Mateo Jaramillo, CEO of Form Energy, which is building iron-air batteries in West Virginia, told the AP that it wouldn’t be moving so quickly on the project if it weren’t for support from the IRA. The outlet also noted that despite the influx of investments, labor shortages in the clean energy sector could prove to be a challenge.