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The long-term future of the Inflation Reduction Act may hinge on the outcome of the 2024 presidential election.
But a new analysis of projects announced in the landmark federal law’s first two years underscore the nonpartisan nature of clean-energy projects. In fact, 60% of major clean-energy projects announced since the IRA’s passage are in Republican congressional districts, according to a report by nonpartisan business and environmental group E2.
In all, E2 tallied 334 new clean-energy projects during the IRA’s lifetime. Those projects came with private investments of $126 billion across 40 states and an estimated 109,278 new jobs.
“You’ll find that the majority of these projects are happening in red states and in Republican congressional districts, which is significant, of course, because…it was passed solely by Democrats,” E2 Executive Director Bob Keefe said during a virtual panel on the report. “What that says to me is one thing: There shouldn’t be anything political or partisan about expanding the clean economy.”
In the IRA’s second year, project activity slowed, with 118 new project announcements representing more than $40 billion in investments and an estimated 35,000 new jobs.
Keefe attributed the slowdown to the fact that only so many factories are needed, uncertainty over the election, and repeated attempts by Republicans in the US House to roll back the law. Former President Donald Trump has vowed to repeal the IRA if he wins in November.
The analysis showed that Michigan was the biggest winner of projects, drawing 30 in the last two years. The other top states were Georgia, South Carolina, Texas, and North Carolina.
EV and battery companies had the most projects of any sector, with more than $81 billion in investments attached to 152 projects and nearly 63,000 jobs. Foreign companies are behind nearly half of the projects.
Meanwhile, a recent Treasury Department analysis revealed that in 2023, some 3.4 million American consumers claimed more than $8 billion in residential clean energy and home energy efficiency credits, which were extended and expanded by the IRA.
“Now we can see working families, everyday people, families in low-income communities, renters, nonprofits, churches…are now able to take advantage of this technology in a way that they were not before the Inflation Reduction Act,” Ajulo Othow, founder and CEO of a North Carolina-based solar and storage development company called EnerWealth Solutions, said during the E2 panel.