In two years since the Inflation Reduction Act (IRA) became enacted, private corporations have announced almost $128 billion in clean energy projects to take advantage of its tax incentives. These investments, including six huge projects announced in August, would create nearly 100,000 employment.
Since the IRA became legislation in August 2022, roughly half of all projects have been proposed in Southern states, where five of the six new projects will be. Georgia, South Carolina, North Carolina, and Tennessee have the most commits.
“The Inflation Reduction Act has been wildly successful in our region,” says Southern Alliance for Clean Energy executive director Stephen A. Smith. Smith advised various Southern state and municipal policy organizations, including the Tennessee Valley Authority’s Regional Energy Resource Council.
Private investment may make Georgia an electric transportation leader. Smith thinks Brian Kemp has handled a contentious topic well, seeing it as a state opportunity.
Georgia is developing a car supply chain and technical training. With almost $21 billion in promises, North Carolina is the biggest winner, estimated to produce roughly 12,000 jobs.
No Republican voted for the IRA, yet all kinds of politicians attend new facility ribbon ceremonies. Smith believes it’s too early to tell if this shows a hidden commitment to emission reduction. He thinks it’s clear that Southeast leaders know and welcome the energy transition’s potential to boost economic growth and job growth.
New sustainable energy manufacturing and generation jobs will boost a sector growing three times faster than U.S. employment.
An annual review of clean energy employment by the organization E2, a nonpartisan network of investors and industry leaders, showed that clean energy jobs make up a large portion of new U.S. jobs. “The 149,170 new clean energy jobs created in 2023 made up 6.4% of all jobs and nearly 60% of all energy sector jobs,” the paper adds.
Nearly 3.5 million Americans work in renewables. By far, California has the most jobs. The South is adding them fastest, matching investment announcements.
Bob Keefe, E2’s executive director, argues the IRA’s macroeconomic influence is underappreciated. The map below illustrates where its growth will occur and where clean energy economies are growing. “The policy is working,” Keefe adds.