Critical Impact:

IRA Spurs Solar Industry Boom & Major Investments In US Manufacturing Facilities

Enphase Energy, First Solar, and NextEra Energy are just some of the solar power and tech companies that have already committed to expanding their solar manufacturing capacity in the U.S. This comes as America’s solar industry is projected to rapidly grow in an IRA-induced clean energy boom. The acceleration toward 100% clean energy & more domestic clean manufacturing will not only create good-paying jobs across the country but will also boost cost-saving investments by public utilities and lower costs for American families. 

And as these investments take hold, more and more jobs within the solar and clean power sector will be created right here in the United States. This has leveled up the American clean power and manufacturing sectors—alleviating American dependence on foreign manufacturing and quelling supply-chain insecurity. 

Our take on the latest developments in the IRA’s real-world impact:

“The IRA’s investments and incentives for the solar industry are doing exactly what they were designed for: creating jobs and positioning American manufacturing to lead the world in the clean energy economy of the future,” said Evergreen Action Deputy Press Secretary Elizabeth Cavalieri. “By boosting the capability threshold of our solar industry, the IRA is spurring a virtuous cycle that invites further investment and innovation. The coming American clean manufacturing boom will ensure we no longer have to rely on the volatile fossil-fuel markets or foreign manufacturers to deliver clean, reliable, and affordable energy to communities across the U.S.”

Additional IRA Impact:

Inflation Reduction Act Offers Opportunity for Eos Energy Enterprises, Inc. and Energy Storage Customers to Capture Substantial Long-Term Value While Significantly Reducing Emissions | GlobeNewswire | EOS Energy Enterprises | 10.31.22

“‘We believe that one of the important benefits of the IRA is that it will significantly reduce the costs of battery cells, modules, and energy storage systems, particularly for those manufactured in the US which we expect to accelerate the domestic energy transition,’ said Joe Mastrangelo, Chief Executive Officer of Eos. ‘We continue to see accelerated demand in our robust opportunity pipeline. The IRA encourages the building of a clean energy future in America and Eos is well-positioned as one of the only at-scale US manufacturers of proven long-duration energy storage.’”  

Inflation Reduction Act Will Create 9 Million+ ClimateTech Jobs, New Report Says – Opportunities For Women | Forbes | Joan Michelson | 10.30.22

“Based on data from the Congressional Budget Office, the bill’s text, it says they focused on jobs created by the climate, energy, and environmental provisions in the bill. They estimated those to be created at about 900.000 per year, and include jobs in communities where coal-fired plants or mines are or will be closed. These are male-dominated roles but there’s a silver lining for women.”

Does Ford think its EVs qualify for the full $7,500 IRA tax credit? Here’s what its CEO said | Electrek | Michelle Lewis | 10.28.22

“Ford CEO Jim Farley noted in his opening statement that the company has already broken ground on its new BlueOval SK battery plants in Kentucky. Domestic battery assembly/manufacturing = check. He also said that the company’s ‘team is making great progress in securing raw materials, importantly the processing of those raw materials and the battery capacity that we need’…In regard to the IRA proving beneficial to Ford itself on the battery production front, Farley said: ‘From ’23 to ’26, we estimate a combined available tax credit for Ford and our battery partners could total more than $7 billion with large step-up in annual credits in ’27 as our [joint venture] battery plants ramp up to full production.’”

Granholm says U.S. is developing uranium strategy for nuclear power | The Washington Post, Climate 202 | Maxine Joselow |10.27.22

“‘The United States wants to be able to source its own fuel from ourselves, and that's why we are developing a uranium strategy,’ Granholm said. ‘We'll be working on … enhancing that and making sure that we can fuel our own reactors as well as the partners to those who also have those ambitions…’ The Inflation Reduction Act authorized $700 million for bolstering the supply of high-assay low-enriched uranium (HALEU), which many advanced reactors under development plan to use. In March, President Biden also invoked the Defense Production Act to support domestic production and processing of critical minerals.”

Eastern Idaho nuclear lab gets $150M to upgrade infrastructure | KTVB Idaho | Keith Ridler AP | 10.25.22

“The Idaho National Laboratory in the eastern part of the state will receive $150 million for infrastructure improvements to boost nuclear research and development, the U.S. Department of Energy announced Tuesday…The department said the money is part of President Joe Biden’s Inflation Reduction Act that includes some $375 billion over a decade to fight climate change. The money will support nearly a dozen projects at the lab’s Advanced Test Reactor and Materials Fuels Complex.”

Inflation Reduction Act Breakdown: How Your Data Center Benefits from New Legislation | Data Center Knowledge | Sharon Fisher | 10.5.22

“Good news: Several components of the Inflation Reduction Act (IRA) could not only improve data center sustainability but help save you and your fellow data center operators money directly and indirectly through tax credits. Here’s a quick rundown: Cash for reducing and capturing carbon emissions is now real for data centers wishing to invest in the necessary equipment. Lower energy costs due to power companies investing more renewable energy projects.More time to plan your renewable energy efforts while hyperscalers, such as Microsoft and Facebook, test concepts such as the self-powered data center, leading to an elimination of friction with energy supply and more control over energy production. This, in turn, leads to more flexibility when scaling out your data center operations.”

Interested in chatting with our team more about what these impacts mean for climate and clean energy? Reach out to us at elizabeth@evergreenaction.com.