Which states are attracting clean energy investment and jobs?

In the two years since the Inflation Reduction Act (IRA) was passed, private companies have responded to its tax breaks by announcing more than $128 billion in clean energy projects. These investments, including the six major projects listed in August, will create more than 100,000 new jobs.

Five of the six new projects will be in Southern states, which have attracted nearly half of all projects submitted since the IRA became law in August 2022. The largest commitments were in Georgia, South Carolina, North Carolina and Tennessee.

“The Inflation Reduction Act has been a huge success in our region,” says Stephen A. Smith, executive director of the Southern Alliance for Clean Energy (SACE). Smith has served as an advisor to state and local policy agencies in several Southern states, including the Tennessee Valley Authority Regional Energy Resource Council.

Georgia has attracted private funding that could make it a leader in electric transportation. “Brian Kemp has done a great job of taking what could have been a divisive issue and turning it into a real opportunity for the state,” Smith says. The supply chain for automakers is coming alive in Georgia, as are opportunities for technical training. North Carolina is the biggest winner so far, with more than $21 billion in commitments that are expected to create nearly 12,000 new jobs.

No Republicans voted for the IRA, but elected officials of all stripes are showing up for ribbon-cutting ceremonies at new facilities. Smith says it’s too early to know how much of a behind-the-scenes commitment to reducing emissions might be reflected. But there’s no doubt that leaders across the Southeast are seeing and embracing the potential of the energy transition to drive economic development and job growth.

Clean energy jobs will add dynamism to a sector where jobs are growing three times faster than employment in the U.S. as a whole. E2, a nonprofit network of investors and business leaders, released its annual Clean Energy Employment Assessment, which found that clean energy jobs account for a significant portion of new jobs in the U.S. economy. “The 149,170 new clean energy jobs created in 2023 represented 6.4 percent of all jobs created in the economy and nearly 60 percent of all jobs created in the energy sector,” the report said.

Nearly 3.5 million Americans now work in renewable energy. California has the most jobs by far. The South is adding them the fastest, a trend consistent with investment announcements.

The IRA’s macroeconomic impact hasn’t gotten the wide recognition it deserves, says Bob Keefe, E2’s executive director. The map below shows where the growth it spawned will go — and the reality that clean-energy economies are taking root in new parts of the country. “These policies are working,” Keefe says.