Clean Energy Sector Added 150,000 Jobs in 2023, Boosted by the Inflation Reduction Act

The clean energy industry added nearly 150,000 new jobs in 2023, driven by the Inflation Reduction Act, according to a report by E2. Southern states led this growth, accounting for 36% of the new positions as the renewable energy sector continues to expand across the U.S.

Southern States Lead Clean Energy Job Growth, Adding 54,000 Jobs in 2023 Under IRA

According to a recent report, the renewable energy sector employs nearly 3.5 million individuals in the United States, with over 1 million positions in states throughout the South.

According to a report released by the nonpartisan business group E2 on September 17, the Inflation Reduction Act spurred employment in the renewable energy sector in 2023. The comprehensive 2022 law provided hundreds of billions of dollars to encourage emissions reductions and assist the U.S. economy in transitioning away from fossil fuels to combat climate change.

The report discovered that in 2023, the first full year of the Inflation Reduction Act, renewable energy and clean vehicle companies created nearly 150,000 new jobs. In the South, over 54,000 renewable energy jobs were created, which accounted for 36% of the total number of new jobs in the region.

In contrast, the Midwest, Northeast, and West collectively generated 95,000 renewable energy employment opportunities in 2023, per CNBC News.

Vice President Kamala Harris has emphasized her tie-breaking vote to approve the legislation in the Senate during her presidential campaign, and the law, IRA, has become a cornerstone of the Biden administration's environmental record.

E2's "Clean Jobs America" report considers employment in biofuels, grid modernization, battery storage, renewable energy, and sustainable vehicles.

Although Republicans in the House and Senate unanimously opposed the measure, the results indicate that Southern states, where Republicans have historically maintained a political stronghold, are reaping the benefits of the IRA.

Alabama, Kentucky, and Oklahoma were among the states with the fastest growth in clean energy employment, as determined by the report's percentage increases.

According to E2, the renewable energy industry's total number of jobs was primarily concentrated in the three most populous states: California, Florida, and Texas.

Clean Energy Jobs Grew by 4.5% in 2023, Outpacing U.S. Job Growth and Shaping Policy Debate

According to the report, renewable energy employment increased by approximately 4.5% in the United States last year, significantly higher than the country's overall job growth rate of 1.5%. Approximately one in sixteen new jobs created in the United States is now associated with clean energy.

Since 2015, E2 has published annual reports on expanding renewable energy employment in the United States.

Given its timing, this year's report's findings may affect the November presidential election.

Donald Trump has committed to "rescinding all unspent funds" under the Inflation Reduction Act if elected president. He has stated that this action could be beneficial in combating inflation. On the other hand, Harris has identified the act as a critical illustration of the Biden administration's employment creation efforts.

In August, Harris referred to the legislation as "historic" and "transformational" in a statement commemorating the IRA's second anniversary.

According to Bob Keefe, executive director of E2, the report demonstrates the potential for additional development in the clean energy sector.

“We’re just getting started,” he said in a statement. “The biggest threats to this unprecedented progress are misguided efforts to repeal or rollback parts of the IRA, despite the law’s clear benefits both to American workers and the communities where they live.”