Federal Clean Energy Policies under the IRA bring about the creation of 3.5 million jobs, with a significant proportion of that job growth occurring in the southern USA, exceeding typical employment growth by a factor of 2.
The federal Inflation Reduction Act (IRA) has sparked a significant increase in clean energy job growth across the United States, with the South leading the way.
Since the IRA was signed into law in August 2022, more than 200 new large-scale manufacturing projects have been announced nationwide, primarily in the electric vehicle and battery sectors. This surge has created over 42,000 new manufacturing jobs and nearly 41,000 jobs in clean vehicles.
The South, in particular, has seen a boom in clean energy employment. The region now accounts for more than any other region, with clean energy's share of the overall energy industry workforce standing at more than four out of every 10 workers.
Construction accounts for the most total jobs with more than 1.6 million, followed by professional services with 740,000 jobs. Energy efficiency, which employs more clean energy workers than any other sector of the energy economy - including fossil fuels - added the most overall jobs (75,000).
The IRA's impact is not limited to job creation. It has also spurred numerous renewable energy projects and business growth, creating many jobs. In the first two years after the IRA was enacted, 334 clean energy projects across 40 states—many located in the South and West—created over 109,000 jobs and mobilized $126 billion in private investment.
This hiring growth in renewable energy sectors has been twice as fast as in fossil fuels and the overall economy. For example, states like North Carolina have seen large investments in advanced battery manufacturing and clean energy infrastructure that bring hundreds of new jobs with above-average wages to local communities.
The IRA's benefits are further supported by continued state and local policy support and bipartisan interest to sustain and accelerate renewable energy development. This includes streamlined permitting and attractive tax credits that improve project economics for solar, wind, hydrogen, and other technologies.
Moreover, the Department of Energy and USDA have programs linked to the IRA to bolster clean energy workforce development, manufacturing, and rural energy transitions, further supporting job creation in underserved areas.
E2's annual Clean Jobs America reports have tracked U.S. clean energy job growth since 2015. The latest report shows that the IRA added nearly 150,000 jobs in the first full year, boosting the total number of clean energy workers to nearly 3.5 million.
However, misguided efforts to repeal or rollback parts of the IRA could threaten the progress made in the clean energy sector. With clean energy jobs growing by nearly 4.5 percent last year, accounting for about one in every 16 jobs added across the U.S. economy, it's clear that the IRA is leading an American economic revolution.
- The Inflation Reduction Act (IRA) has driven a surge in the renewable energy industry, sparking over 200 new large-scale manufacturing projects and creating over 150,000 new jobs in the first year.
- Clean energy jobs have grown at twice the rate in renewable energy sectors compared to fossil fuels and the overall economy, with the South leading the way and accounting for more than four out of every 10 energy industry workers.
- The IRA's benefits extend beyond job creation, with $126 billion in private investment mobilized for over 300 clean energy projects across 40 states, many located in the South and West.
- Furthermore, continued policy support, such as streamlined permitting, attractive tax credits, and programs to bolster clean energy workforce development, are essential to sustain and accelerate renewable energy growth, as seen in states like North Carolina.
