With this week marking the two-year anniversary of President Biden's signing of the Inflation Reduction Act (IRA), many are pausing to reflect on how far the projects announced under the Act have already come. With well over 330 significant clean energy and clean vehicle projects announced to date, the act has already ushered in a remarkably transformative period in the U.S. economy.
A report by the nonpartisan business group E2 reveals that these projects are set to generate more than $126 billion in investments and create well over 100,000 new jobs across 40 states. This legislative move has been a catalyst for economic growth, particularly in regions that were previously less involved in the clean energy sector.
EV and battery manufacturing have been at the forefront of this growth, leading the way with over $81 billion invested in 152 projects, expected to create around 63,000 jobs. As these sectors expand, companies like Michigan-based Harvest Solar have seen direct benefits.
Lucas Olinyk, President of Harvest Solar, notes, "Michigan has arguably benefited from the IRA more than any other state, and that’s certainly been our experience here in Jackson County. It feels like clean energy is at a tipping point – and the IRA is an accelerant.” In fact, Michigan leads the nation with 30 clean energy projects to date, with 12 in the past year alone.
The Southeast has emerged as a significant hub for clean energy development, with more than 110 projects announced in the region. States like South Carolina, Georgia, and North Carolina have become focal points for clean energy investments, all of which have 20 or more projects as of this writing.
Interestingly, Republican congressional districts have been major beneficiaries of the IRA, receiving about 60% of all projects and 85% of private-sector investments. This is despite the fact that no Republican members of Congress voted for the IRA. The 9th Congressional District of North Carolina, represented by Republican Richard Hudson, has emerged as the top district for clean energy investments, with nearly $9.9 billion in announced projects.
Bob Keefe, Executive Director of E2, highlights the broader significance of these developments: “What the numbers show is that we’re at the advent of the biggest U.S. economic revolution in generations – and it’s all because America finally decided to do something about climate change and clean energy with the IRA.”
The IRA has driven unprecedented growth in the clean energy sector, but it faces ongoing political challenges. More than 40 attempts have been made in the U.S. House of Representatives to roll back or reduce parts of the legislation, with the upcoming November elections adding further uncertainty to its future. Despite these challenges, Olinyk of Harvest Solar remains committed to the company’s plans, stating that they will continue their course regardless of potential changes in political leadership.
This month, 18 House Republicans signed a letter urging party leaders not to repeal the IRA, despite pressure from the Trump-aligned Project 2025 transition plan to do so.
The impact of the IRA is evident across the nation. Ajulo Othow, CEO of EnerWealth Solutions, who is based in North Carolina, observes that “The IRA is succeeding on multiple fronts, and the development of more renewable energy projects is just a small part of the story. Whether it’s a minority landowner in the South who leverages a solar development to help keep her farm in the family for another generation, or a factory that creates thousands of jobs for young people, the IRA is helping generate real economic growth that improves lives, ties communities together and grows small businesses.”
Manufacturing has played a central role in this economic shift, accounting for 254 of the announced projects, which represent over 90% of all investments and jobs. Additionally, clean vehicles have been a major focus within the past year, with 45 projects announced. The influx of foreign investment, particularly from South Korean companies, has further underscored the IRA’s impact, with overseas firms leading or partnering on nearly half of the projects announced since the legislation's enactment.
As the clean energy sector continues to grow, its trajectory will likely be shaped by both economic opportunities and political challenges. The IRA’s influence has extended across diverse regions and industries, fundamentally altering the U.S. energy landscape.
Brad Beauchamp, EV Product Segment leader for Blue Bird Corp., encapsulates the broader impact: “At Blue Bird, we’ve been in the school bus business for nearly a century. The industry’s latest transition to electric buses is driving new business for companies like ours while also helping school districts save money and helping kids and all of us breathe cleaner air.”
The IRA’s two-year history has already demonstrated its capacity to drive significant economic change. However, its future success will depend on the continued support of policymakers and stakeholders across the nation.
