Clean Energy, Made in America: The IRA’s Impact on Jobs and Manufacturing
One important lesson learned from the supply chain disruptions during the COVID-19 pandemic is that America’s manufacturing supply chain has significant gaps. These challenges underscored the critical importance of American manufacturing to our national and economic security. This is particularly true for domestic energy production and its supply chain.
As energy consumption grows with the rise of technologies like AI, expanding data centers, increased manufacturing, and new industries, it’s more important than ever to energize our growth with clean, domestic energy production.
In October, CICE partnered with E2 to release a survey on how the Inflation Reduction Act (IRA) has impacted clean energy businesses. The survey garnered attention from both energy-focused press and mainstream media. Its findings highlight a key takeaway: the IRA creates good-paying American jobs by strengthening the clean energy supply chain.
The IRA is driving a surge of private investment in American manufacturing.
The IRA spurred a surge of private investment in American manufacturing by giving the private market greater confidence and clear guidelines for clean energy supply chain investments.
Some notable examples include:
First Solar investing in manufacturing facilities in Ohio, Alabama, and Louisiana.
Qcells, a South Korean solar panel manufacturer, expanding its facility and supply chain in Georgia.
Battery makers LG and FREYR building manufacturing facilities in Arizona and Georgia, respectively.
Corning, Inc. is building a solar panel supply chain manufacturing facility in Michigan.
Overall, IRA has driven more than $200 billion in economic activity across the United States.
The IRA has created more than 154,000 permanent private-sector American jobs.
Nearly two-thirds (64%) of the 930 surveyed companies reported hiring new employees because of the IRA.
Significantly, most of these companies are small businesses, with 100 employees or fewer, showing how the IRA benefits businesses of all sizes.
Domestic clean energy generation is booming, strengthening U.S. energy independence.
In 2023, three-quarters of new energy generation came from domestic clean sources like solar, battery storage, and wind. Importantly, these energy sources are not tied to global fuel markets, protecting them from international price manipulations.
The IRA is a policy that works.
The IRA has proven to be a powerful tool for onshoring manufacturing, creating American jobs, and strengthening domestic energy production and supply chain. It is a clear example of how federal policies can bring real benefits to our economy and communities. We should encourage our elected officials to keep policies like the IRA high on their priority lists.
Check out our survey results and press release for more details