Clean energy companies’ investments in the US solar and storage industry have surpassed $100 billion since the Inflation Reduction Act (IRA) implementation last year, Solar Energy Industries Association’s (SEIA) latest analysis revealed.
The report specified that the rapid surge of solar and storage production in the country was primarily due to the 51 production plants proposed or expanded in 2022.
SEIA president and Chief Executive Abigail Ross Hopper emphasized the significant role of the IRA in the growing demand for clean energy resources.
“The unprecedented surge in demand for American-made clean energy is a clear sign that the clean energy incentives enacted last year by Congress are working.
This law is a shining example of how good federal policy can help spur innovation and private investment in communities that need it most. We are unleashing abundant clean energy that is creating jobs and capable of delivering affordable, reliable power to every home and business in this country.”Abigail Ross Hopper, SEIA president, and CEO
Solar factory investments
The report stated that the companies’ planned new solar factories and expansions would generate about $20 billion in investments.
Moreover, these facilities will provide a new production output of 155 GW for the region’s solar supply network.
Of that total, solar modules will account for 85 GW. Solar cell production will contribute to 43 GW. Meanwhile, silicon ingots and wafers are expected to generate 20 GW. Lastly, inverter capacity will hit 7 GW.
With these additional production capacities, the US is on track to boost its current output by more than 17 times in 2026. This projected increase can reportedly support most US solar projects in the pipeline.
How can the solar and storage industry boost employment?
CleanTechnica reported that the solar and storage industry will generate additional 137,000 job opportunities by the following decade. Notably, this significant increase in employment is not possible without the IRA.
It further noted that this sector’s workforce will grow to approximately 500,000 by 2033.
Moreover, solar factories announced in 2022 will create over 20,000 jobs. It will also rise threefold to more than 100,000 new job positions in the following decade.
The report also indicated that solar companies had declared 65 GWh of energy storage production capacity for 14 new and expanded factories. The industry has also launched more than 3 GW of new large-scale energy storage projects since the IRA’s implementation. Moreover, the IRA resulted in about 100,000 residential solar and battery system installations.
In addition, the country’s solar capacity will also hit 668 GW by 2033. It can efficiently support all households in the Mississippi River’s east part. It is also expected to cut carbon emissions by 459 million metric tons every year.
It is also worth noting that the US solar industry’s private sector investments will reach about $565 billion in the next decade.
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The IRA has really been effective in boosting the US’ solar and storage production capacity. The government’s offered substantial incentives have attracted an increasing number of companies to invest in this particular industry.