America’s $374 billion advanced energy industry poised for accelerated growth thanks in part to the Inflation Reduction Act
WASHINGTON, DC, August 16, 2023 – A year after its signing, the Inflation Reduction Act (IRA) is working as intended, fueling a new era of investment in domestic advanced energy manufacturing and empowering the growth of the technologies and services America needs to secure a 100% clean energy future.
The recently published Market Report by Advanced Energy United found that the advanced energy industry – made up of several sectors including building efficiency, advanced transportation, electricity distribution and generation, and advanced fuel production – grew by 14% in market size from 2021 to 2022, up to $374 billion. Those figures have the potential to be dwarfed by the growth stemming from the investments fueled by the IRA. Combined with the Infrastructure Investment and Jobs Act (IIJA) of 2021, the IRA is expected to lead to roughly $444 billion in federal investment and $1.2 trillion in private investment, resulting in $2.8 trillion in total GDP, 23 million jobs, and $60 billion in annual consumer savings – all told, a six-fold return in investment in federal dollars in advanced energy growth.
To celebrate the moment, Advanced Energy United President and CEO Heather O’Neill released the following statement, anticipating the next era of policies needed to reach our clean energy goals:
"Advanced energy is transforming the way America is powered, and the Inflation Reduction Act is making it happen faster and more equitably. We are thrilled to see an incredible number and diversity of advanced energy companies already investing billions into American-made manufacturing, and we are awed by the growing interest of households and businesses to use advanced energy to power their lives, from distributed resources like rooftop solar and storage and electric vehicles, to electric appliances like heat pumps.
"In fact, with so much enthusiasm for our clean energy future, we’re already seeing a bottleneck for the people and resources we need to make our 100% clean energy goals a reality. In many ways, passing the law was the easy part. We now need to use every policy lever available to make it easier for consumers to choose advanced energy, for U.S. manufacturers to produce advanced energy technologies, and for companies to turn plans into projects.
"For that reason, this one-year anniversary must also serve as a call to action. We have a long way to go to reach our clean energy goals, but thanks in part to the Inflation Reduction Act, we have the foundations of the industrial policy we need for takeoff. Next, we need to clear the runway by removing unnecessary roadblocks to fair marketplace competition and by making permitting and siting processes more efficient for critical materials, clean energy projects, and electric transmission.
"If we succeed, we’ll not only have a cleaner power system, but a more affordable, accessible, and resilient one too."
Related blogs:
- Blog: A Discussion on Unleashing the Promise of the Inflation Reduction Act (July 2023)
- Blog: Inflation Reduction Act Unlocks Savings for Utilities - and Consumers - that Choose Clean Energy Over Gas (May 2023)
- Blog: United and Members Visit Capitol Hill to Talk Permitting Reform (May 2023)
Related reports:
- Report: Advanced Energy Now 2023: Global and U.S. Market Revenue 2011-2022 and Key Trends in Advanced Energy Growth (June 2023)
- Report: Economic Impact of Advanced Energy Investment From the Infrastructure Investment and Jobs Act and Inflation Reduction Act (August 2022)
Related webinars:
- Webinar: Investing in Policy: A Conversation with Clean Energy Leaders, featuring Tom Steyer (May 2023)
- Webinar: IRA Opportunities and Obstacles - State Perspectives (Dec. 2022)