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BACKGROUND: Clean Energy Benefits

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Last Updated: 9/2/25

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Clean Energy Is Affordable:

• According to a June 2025 report, unsubsidized utility-scale solar and onshore wind remain the most cost-effective forms of new-build energy generation.
  • In contrast, the cost of building a new combined cycle gas turbine has reached a 10-year high.
• The transition to clean energy will reduce U.S. electricity prices by 20 to 80 percent by 2040.

Clean Energy Is Rapidly Growing:

• Half of the new electric generation capacity is expected to come from solar in 2025.
  • Solar was expected to account for 33 gigawatts of the expected 64 gigawatts of new electric capacity developers planned to bring online in 2025.
• Solar and wind energy made up 91% of new U.S. electric generation capacity added in the first five months of 2025.
• Clean power sources generated 51 percent of all U.S. electricity supplies in March 2025, the first time clean power sources have surpassed fossil fuels.
• Solar and wind energy are being deployed about five times faster than all other energy sources combined.

Clean Energy Creates Jobs:

• Companies announced 385,000 new clean energy jobs between the passage of the Inflation Reduction Act in August 2022 and June 30, 2025.
• Clean energy jobs pay about 21 percent higher than average.

• According to the Department of Energy’s U.S. Energy and Employment Report, clean energy industries are represented by a union or covered under a project labor agreement at a higher rate than traditional energy employment for the first time, with 12.4 percent of clean energy jobs represented by a union. 
• 75 percent of clean energy jobs created by the Inflation Reduction Act do not require a four-year college degree. 

Clean Energy Supports Communities Across America:

• State and county governments received $4,661,291,493 in tax revenue from wind and geothermal energy production in 2022.
• Compared to conventional buildings, many new and renovated energy-efficient buildings offer energy cost savings of as much as 50 percent.

• Over 6.2 million students, more than 1 in 9 across the country, now attend schools powered by solar.
• The vast majority of schools go solar with minimal to no upfront capital costs. According to a 2020 report, 79 percent of the solar installed in schools was financed by a third party.
• Renewable energy is a “lifeline” for farmers because it provides steady income and affordable power, which guarantees income even when crop prices fall or drought strikes.

Clean Energy Strengthens The Grid And Is Reliable:

• Grid Reliability Backgrounder RES 2024_06_20
• Clean energy strengthens the grid not only by providing direct energy resources but also by providing so-called ancillary grid services – which are functions grid operators use to maintain operations (and reliability) beyond sufficient energy generation.
• Studies show clean energy sources are well-equipped to provide these ancillary services — sometimes even more effectively and efficiently than conventional fossil fuel generators.

Clean Energy Is Affordable

Clean Energy Generation Is Low Cost

Clean Energy Is Cheaper Than Fossil Fuels

• According to a June 2025 report, unsubsidized utility-scale solar and onshore wind remain the most cost-effective forms of new-build energy generation.
  • In contrast, the cost of building a new combined cycle gas turbine has reached a 10-year high.

Clean Energy Reduces Costs For Consumers:

• The transition to clean energy will reduce U.S. electricity prices by 20 to 80 percent by 2040.
• The cheapest source of fossil fuel generation has a levelized cost of electricity that is twice as high as the levelized cost of electricity for utility-scale solar.
  • The average levelized cost of electricity from utility-scale renewable energy sources (utility-scale solar, utility-scale solar plus storage, onshore wind, onshore wind plus storage, and offshore wind) was lower than the levelized cost of electricity from natural gas before accounting for tax credits from the Inflation Reduction Act.
  • When accounting for Inflation Reduction Act tax credits, the average levelized cost of electricity from utility-scale solar was nearly a third less than the average levelized cost of electricity from natural gas. 
• The levelized cost of electricity generated by solar and wind was lower than the levelized cost of electricity generated from coal, oil, and gas.
  • The Inflation Reduction Act’s tax credits are projected to lower the cost of wind and solar by 55 percent and 40 percent, respectively.
• Replacing all but one of the country’s coal plants with clean energy and batteries would produce net savings for consumers.
  • The Inflation Reduction Act’s tax credits make clean energy cheaper than existing coal-fired generation.

Clean Energy Drives Wage Increases:

• Clean energy was projected to increase wages by 2 to 3 percent nationwide by lowering the cost of electricity. 

Repealing The IRA’s Clean Energy Tax Credits Would Increase Retail Rates For Electricity Across The Country:

Trump Administration Policies Are Raising Energy Costs RES 2025

Solar Energy Is Affordable

Solar Energy Is Cheaper Than Fossil Fuels:

• As of February 2024, utility-scale solar now costs between $29 and $96 per MWh, compared to $39-101 per MWh for natural gas.
• In Fall 2022, power generated from utility-scale solar facilities was about a third cheaper than power generated from natural gas facilities.

Solar Energy Costs Are Falling:

• The cost of solar power dropped almost 85 percent from 2010 to 2023 before accounting for incentives.
• The Inflation Reduction Act will lower the cost of solar energy by 40 percent.
• Solar panel installation costs decreased by more than 50 percent between 2014 and 2024.
• In the second half of 2024, residential solar prices reached $2.50 per watt, falling 6.4% from the first half of the year. 

Made-In-America Solar Panels Are Cheap:

• Tax credits in the Inflation Reduction Act make domestically manufactured solar panels 30 percent cheaper than imported solar panels.
• U.S. panel manufacturing has fallen from $5 per watt in 2000 to less than $0.25 in 2023.

The Inflation Reduction Act Lowered Solar Costs:

• The Inflation Reduction Act established the $7 billion Solar for All grant competition, which provides grants to ensure low-income and disadvantaged households can access solar power.
  • The selected programs use grants and low-cost financing to develop community solar, rooftop solar, and battery storage for individual homes and multifamily affordable businesses.

Wind Energy Is Affordable

Wind Energy Is Cheaper Than Fossil Fuels:

• In Fall 2022, electricity generated from onshore wind was 44 percent cheaper than power generated from natural gas facilities. 

Wind Energy Costs Are Falling:

• The Inflation Reduction Act was estimated to lower the cost of wind energy by 55 percent.

Made-In-America Wind Turbines Are Cheap:

• Tax credits in the Inflation Reduction Act make domestically manufactured wind turbines and turbine components cheaper than imports.

Offshore Wind Costs Are Falling

Transmission Planning Is Lowering Offshore Wind Costs:

• Recent studies have found that establishing a centralized transmission planning process led by grid operators would lead to hundreds of millions in cost savings while reducing duplicative costs. 

Domestic Manufacturing Is Lowering Offshore Wind Costs:

• Federal manufacturing incentives will support the offshore wind industry in the long term, but companies currently face challenges securing key components domestically as manufacturing capacity slowly increases. 
• Clean energy plan tax credits are keeping offshore wind component factories afloat despite rising costs. 

Battery Storage Is Becoming More Affordable

Battery Storage Systems Can Help Americans Lower Their Electricity Bills:

• Home batteries can help Americans avoid higher electricity rates during periods of peak demand by allowing families to use stored energy for the home during these hours.
  • Most home batteries come equipped with technology to manage energy use, ensuring optimal charging and power deployment periods. 

Battery Storage Costs Are Dropping:

• Battery storage costs dropped by nearly 20 percent in 2024.

The Inflation Reduction Act Was Lowering The Cost Of Battery Manufacturing:

• The Inflation Reduction Act’s tax credits were supposed to make the U.S. the most affordable place to manufacture batteries in the world by 2029, with production costs estimated to fall from $111.8 per kilowatt hour to $76.8 per kilowatt hour in 2029, the lowest in the world.
  • Costs will likely continue to fall as U.S. manufacturers benefit from economies of scale and apply what they have learned from early manufacturing investments. 

Clean Energy Saves Americans Money

Federal Clean Energy Investments Lower Energy Costs:

• By 2030, the Inflation Reduction Act was expected to save the average American taxpayer $1,000 a year in energy costs. 
• The Inflation Reduction Act’s tax credits for clean energy allowed utilities to lower costs for consumers:
  • Duke Energy planned to cut residential energy rates in Florida because of retroactive tax credits from the Inflation Reduction Act. The tax credits come from nine solar units currently under construction or operational in Florida that meet Inflation Reduction Act tax credit requirements. 
  • Clean energy incentives in the Inflation Reduction Act were expected to lower energy costs, according to utility CEOs.
    • Tax advantages make it affordable for utilities to directly own and operate solar power facilities, passing savings onto customers. 
  • Bloomberg: “Big Utilities See Inflation Reduction Act Helping Reduce Customers’ Energy Bills”
    • Executives at utilities, including Duke Energy Corp. and American Electric Power Co., foresaw lower electricity bills thanks to clean energy tax credits and incentives from the Inflation Reduction Act.
    • Duke announced it will provide a $56 million refund to Florida customers for solar tax production credits.

The Inflation Reduction Act’s Tax Credits Helped Americans Lower Energy Costs Through Clean Energy: 

• The Inflation Reduction Act created the Home Efficiency Rebates program and the Home Electrification and Appliance Rebates programs, which will help low and middle-income homeowners lower energy costs.
  • The adoption potential of heat pump water heaters and electric cooking ranges in low-to-moderate-income households more than doubled with the availability of home electrification Inflation Reduction Act rebates.  
  • The adoption potential of heat pump clothes dryers in low-to-moderate-income households more than tripled with the availability of home electrification Inflation Reduction Act rebates.  
• Clean energy tax credits for heat pump installations can help households save up to $1,200 per year on heating bills. Heat pumps are eligible for tax credits equal to 30 percent of costs, up to $2,000.
• Rooftop solar tax credits can help homeowners save about $400 a year and tens of thousands across the system’s lifetime in utility bills and provide backup power sources. Tax credits are available for up to 30 percent of the cost of installation without a cap, with an average tax credit of about $3,700.
• In 2023, 2.3 million American families claimed more than $2 billion from Inflation Reduction Act tax credits for energy-efficient home improvements.
  • American families saved an average of $882 on their taxes in 2023 with clean energy tax credits and lowered their energy bills by an average of $130 in the first year. 

Solar Energy Saves Americans Money:

• 60% of U.S. families could reduce their electricity costs by 15% by installing a solar-battery system.
  • Households would either save money on electricity or at least see no cost increases. Households where solar-battery systems aren’t economically viable tend to have higher energy burdens and are at a higher risk of power outages.
• According to a study from the Lawrence Berkeley National Laboratory, residential solar installations would save U.S. homes an average of over $1,900 on energy bills per year.
  • Low- and moderate-income rooftop solar adopters experienced a 1.5 percent and 0.8 percent decline in their energy burdens, respectively.
  • Rooftop solar reduced the rate of high or severe energy burdens by 15 percent among low-income households.
• Solar panels can save households between $25,500 and $33,000 on electricity costs across their lifespan.
• In 2024, California’s 17 gigawatts of rooftop solar saved customers about $2.3 billion on their utility bills.
• Going solar can help Americans save as much as 95 percent of their utility costs. The average residential solar setup can generate between 350 kWh and 850 kWh per month, and the average American household uses around 893 kWh of electricity per month.
  • A long-term evaluation of savings from solar panels found that the value of rooftop solar will increase across the U.S. between 2024 and 2050.
• The average payoff period for a solar power system in the U.S. is 8.5 years, with estimated lifetime savings of $25,800.
• Solar power also increases the value of homes, with every $1 reduction in annual energy bills generating an additional $20 boost in property value. Home buyers are willing to pay nearly $10,000 more for houses with solar than for similar properties without solar installations.

Wind Energy Saves Americans Money:

• Proposed and under-development offshore wind farms in the Atlantic and Gulf coasts are projected to decrease electricity bills by $2.8 billion, or $19 per megawatt hour of electricity generated from offshore wind.
  • Massachusetts, Connecticut, and Rhode Island jointly developing 9 gigawatts of offshore wind by 2030 could save New England ratepayers an average of $630 million per year.
  • The development of planned offshore wind farms in these areas is also projected to reduce gas prices by 2.5 percent.

Energy Storage Saves Families Money:

• Texas added 5 gigawatts of energy storage in 2024, lowering Texans’ energy bills by $750 million.
• Grid-scale energy storage could save customers in the Southwest Power Pool, which covers parts of South Dakota, Nebraska, Kansas, and Oklahoma, up to $7 billion on energy bills.

Clean Energy Does Not Increase Power Bills

Clean Energy Did Not Drive Rising Electricity Rates:

• States that have experienced the largest increases in wind and solar generation have not seen electricity rates grow faster than average, with several leaders in clean energy growth actually seeing residential electricity costs rise slower than inflation.
  • In Texas, the buildout of solar and wind energy reduced electricity costs by $11 billion in 2022 alone.
• Natural gas price volatility is a larger driver of electricity price spikes – the states most reliant on natural gas for electricity had the highest rate of retail price increases since 2020.

Clean Energy Is Growing Despite Attacks 

Clean Energy Meets A Growing Percentage Of Electricity Demand:

• Clean power sources generated 51 percent of all U.S. electricity supplies in March 2025, the first time clean power sources have surpassed fossil fuels.
• Clean energy accounted for 29.37 percent of U.S. utility-scale generating capacity as of the first quarter of 2024.

Clean Energy Leads New Installations:

• Half of the new electric generation capacity is expected to come from solar in 2025.
  • Solar was expected to account for 33 gigawatts of the expected 64 gigawatts of new electric capacity developers planned to bring online in 2025.
• Solar and wind energy made up 91% of new U.S. electric generation capacity added in the first five months of 2025.
• In 2024, 96 percent of new U.S. power plants were carbon-free, with solar representing 60 percent of new power capacity added.
• In 2025, solar and battery storage are projected to make up 81 percent of the new utility-scale generation capacity added to the electrical grid.
  • The projected 63 gigawatts of new solar and storage installations would represent an almost 30 percent increase from 2024 when the largest new capacity was brought online since 2002.
  • Comparatively, developers planned to build on 4.4 gigawatts of new natural gas-fired capacity in 2025.
• Wind and solar will lead U.S. power generation growth in 2024 and 2025, according to the EIA. U.S. solar power generation is expected to grow 75 percent to 286 billion kilowatt hours in 2025 from 163 billion kWh in 2023. Wind power will grow to 476 billion kWh in 2025, an 11 percent increase from 2023 levels.’
• A report from the Federal Energy Regulatory Commission found that solar accounted for 86.79 percent of new generating capacity, and wind accounted for 12.4 percent of new capacity added in the first quarter of 2024. Natural gas represented 0.65 percent of new capacity in the same period.

Clean Energy Generation Is Growing Across The Country: 

• Wind and solar together generated more electricity than coal in the U.S. in 2024.
• Wind and solar generated more power than coal through the first seven months of 2024, a first for clean energy.
• Clean energy was 99 percent of the new generating capacity added in June 2024, and 91 percent of the new generating capacity added in the first half of 2024.
• Utility-scale wind and solar installations in Texas’ grid comprise almost 25 percent of the U.S.’s clean energy fleet.
• In March 2024, 56 percent of electricity consumed in six New England states came from wind and solar.
• On 100 of the 144 days between March 8 and July 30, 2024, California’s electricity was supplied fully by clean energy for at least part of the day.
• Twelve states generate enough clean energy to cover more than 50 percent of their annual electricity needs.
  • The twelve states are: South Dakota (96.5 percent), Montana (81.2 percent), Washington (78.2 percent), Oregon (66.9 percent), Kansas (66.8 percent), New Mexico (63.7 percent), Maine (59.7 percent), Oklahoma (57.9 percent), Wyoming (57.7 percent), North Dakota (56.3 percent), and California (53.1 percent)
• According to a report from S&P Global, wind and solar capacity in the United States is expected to reach 59 GW in 2025.
  • Nearly 49 GW of planned solar generation projects are expected to come online in 2025. 
  • More than 31 GW of energy storage is projected to come online in 2025. 

Solar Energy Installations Are Expanding

Solar Installations Are Projected To Increase In 2025:

• Solar accounted for 58% of all new electricity-generating capacity added to the grid through the third quarter of 2025, with more than 30 GW installed.
  • Solar and storage combined for 85% of new capacity in that timeframe.
• The EIA projected that the U.S. would add 26 gigawatts of new solar capacity in 2025, increasing total solar generation by 34 percent.
  • That growth would make solar the fastest-expanding source of power generation in 2025.
• The EIA projected that the U.S. would add 22 gigawatts of new solar capacity in 2026, a 17 percent increase to total solar generation.

Solar Installations Set Records In 2024:

• Solar accounted for 84 percent of the new electricity generation capacity added to the U.S. power grid in 2024.
• Over 37 gigawatts of solar power capacity were added in 2024, nearly double the capacity added in 2023. 
• In the first quarter of 2024, solar accounted for 86 percent of new generating capacity brought online, with 6,497 MW added.
• Solar energy accounted for 67 percent of the new electricity-generating capacity added to the U.S. grid in the first half of 2024.
• In the second quarter of 2024, the U.S. solar market installed 9.4 gigawatts of new capacity, a 29 percent year-over-year increase.
• 15 states surpassed 50 percent growth in solar generation between September 2022 and September 2023:
  • South Dakota – 7067%
  • West Virginia – 347%
  • Ohio – 126%
  • Arkansas – 116%
  • Montana – 103%
  • Oklahoma – 96%
  • Louisiana – 93%
  • Wyoming – 88%
  • Mississippi – 84%
  • Wisconsin – 74%
  • New Mexico – 60%
  • Nebraska – 58%
  • Maine – 57%
  • Indiana – 57%
  • Pennsylvania – 52%

Solar Installations Were Projected To Grow Rapidly:

• The EIA projected that solar would grow by 19.5 percent in 2026, reaching a total of 182 GW of capacity.

Solar Installations Are Projected To Grow Across The Country:

• Rising power bills and falling solar installation costs are projected to drive U.S. household installations of solar panels.
  • A study from Enverus projected that 13 percent of U.S. households would install solar panels by 2030 and nearly 29 percent would have panels by 2050 because of higher power prices.

Wind Energy Is Growing

Wind Installation Was Projected To Grow:

• The EIA projected wind power would grow 11 percent from 430 billion kWh in 2023 to 476 billion kWh in 2025.

The Offshore Wind Industry Was Set To Expand Before Trump’s Threats

Trump Threatened The Offshore Wind Industry:

• Trump paused federal permits and leasing for offshore and onshore wind and ordered a review of existing leases, a targeted attack that has brought the industry to a “standstill.”

The Economic Outlook For Offshore Wind Farms Was Improving Before The Trump Administration:

• Peak interest rates and slowing inflation will make financing new offshore wind projects easier, according to an analyst at Wood Mackenzie.

Energy Storage Is Expanding

Energy Storage Is Rapidly Expanding:

• The U.S. is projected to add over 18 gigawatts of new utility-scale energy storage capacity to the grid in 2025, up from the record-setting total of nearly 11 gigawatts in 2024.
• By the end of 2026, the U.S. is expected to more than double its utility-scale battery storage, reaching nearly 65 GW.
  • Large-scale battery storage sources in the commercial and industrial sectors are expected to rise from about 100 MW to 300 MW by the end of 2026. 
• In the first quarter of 2025, the U.S. utility-scale energy storage market added 1.5 GW of capacity, a 57% increase from Q1 2024.
  • 1,265 MW of new energy storage was deployed in the first quarter of 2024, the highest ever recorded in the first quarter and an 84 percent increase in deployment compared to the first quarter of 2023.
• Residential storage saw its highest Q1 on record in 2025, after installing more than 450 MW. California and Puerto Rico contributed to 74% of the overall growth, leading the residential storage markets. 
• Battery storage capacity grew tenfold between 2020 and 2023, reaching 16,000 MW of capacity. 
• Battery storage capacity was projected to double in 2024, driven by new installations in Texas, California, and Arizona.
• The overwhelming majority of new solar projects in Western interconnection queues also include co-located energy storage.
• The EIA predicted that total battery capacity in the U.S. would grow to 31.1 GW by the end of 2024, up from 17.3 GW at the end of 2023. That scenario represents 80 percent year-over-year growth.
• In 2023, the battery storage industry tripled its installed capacity, adding 14 GW in one year.

Clean Energy Is Faster And Cheaper To Deploy Than Fossil Fuels

Clean Energy Is Faster To Deploy Than Fossil Fuels:

• Solar and wind energy are being deployed about five times faster than all other energy sources combined.
• According to the World Resources Institute, solar and onshore wind farms typically take less than two years to build, while gas-fired power plants can take four years to become operational, and can also require the construction of additional pipeline infrastructure.
  • Solar farms generally take 8 to 18 months to complete and wind farms can be built in 6 to 9 months. 
• In an investor presentation, NextEra Energy said the most economical answer to America’s power needs is to build renewables for energy and storage, noting that renewables had a faster deployment timeline than all other types of power generation.
  • In its Q4 2024 earnings call, the company noted strong demand for clean energy “because they are low cost and can be deployed now.” 
  • John Ketchum, NextEra’s CEO, said: “Given the current power demand environment, it is more important than ever to unleash all forms of electric generation starting with renewables, which are ready now, as I will discuss more in a minute.”

Repealing Clean Energy Tax Credits Would Reduce Solar And Wind Deployment:

• A report from the Brattle Group found that solar and wind deployment in the U.S. through 2035 would fall by over 50 percent if federal clean energy tax credits were eliminated.
  • The report estimated that, of the currently projected 550 GW of new solar deployed through 2035, only 242 GW would be deployed if clean energy tax credits were eliminated.
  • The report also estimated that of the currently projected 254 GW of new wind energy deployed through 2035, only 116 GW would be deployed without clean energy tax credits.

Clean Energy Creates Jobs

Clean Energy Jobs Are Increasing Across The Country

The Inflation Reduction Act Created Clean Energy Jobs

The Inflation Reduction Act Continues To Create Clean Energy Jobs:

• Companies announced 385,000 new clean energy jobs between the passage of the Inflation Reduction Act in August 2022 and June 31, 2025.
• The newly announced jobs are spread across the clean energy economy, including:
  • 138,211 new battery jobs.
  • 57,907 new clean technology jobs.
  • 66,770 new EV jobs.
  • 21,212 new grid and transmission jobs.
  • 10,963 new hydrogen jobs.
  • 76,938 new solar jobs.
  • 13,014 new wind jobs.
• New clean energy jobs have been announced in 49 states and Puerto Rico.

The Inflation Reduction Act Was Projected To Create Millions Of Clean Energy Jobs, Before It Was Repealed: 

• A recent study from BlueGreen Alliance projected that the Inflation Reduction Act would have created more than 9 million good jobs over the next decade, averaging 1 million new jobs per year.
  • 6 million jobs will be created by grants, loans, and tax credits in the legislation.
  • The new Department of Energy loan guarantee authority will create nearly 3 million jobs.
• The Inflation Reduction Act was projected to create up to 1.5 million jobs by 2030. 
• The Inflation Reduction Act was projected to nearly double solar industry employment from 263,000 in 2022 to 478,000 by 2033.
  • Solar manufacturing jobs were projected to grow by over 100,000 by 2033.
  • The Inflation Reduction Act was expected to create an additional 137,000 jobs by 2033 compared to scenarios without the Inflation Reduction Act.

Clean Energy Investments Are Projected To Drive Construction Employment Growth:

• According to the U.S. Bureau of Labor Statistics, construction industry employment is projected to grow 4.7 percent from 2023 to 2033, faster than the 4.0 percent projected growth for all industries. BLS attributed the faster growth in this employment sector to clean energy investments, expanding electricity demand for data and AI, and EV infrastructure.

The Clean Energy Sector Is Adding Jobs Across The Country

The Clean Energy Sector Grew In 2023: 

• In 2023, clean energy employment grew by 4.2 percent, more than double the growth in the energy sector and the U.S. economy, with 3.5 million Americans working in the industry.
  • 142,000 new clean energy jobs were created in 2023.
  • The solar energy sector grew by 5.3 percent in 2023, employing a total of 364,544 workers.
  • The wind energy sector employed 131,327 workers in 2023.
  • The energy efficiency sector employed almost 2.3 million workers in 2023.
  • 28,000 Americans were employed in the construction of new clean energy supply chain facilities.
• Just under 5 percent of all new jobs created in the U.S. economy in 2023 were clean energy jobs.
• Clean energy jobs account for 42 percent of all energy jobs in the U.S.
• Residential housing electrification is projected to create over 1.1 million new jobs by 2035, with an overall employment effect of over 3 million jobs. 

All 50 States Saw New Clean Energy Jobs In 2023— Demonstrating The Industry’s Strength Across All Corners Of The U.S.:

• Every state saw an increase in clean energy jobs in 2023, with California continuing to lead the nation with more than 545,000 jobs.
  • Texas had the second-highest number of clean energy jobs, with over 261,000 clean energy jobs. New York ranked third for clean energy jobs, with over 177,000 clean energy jobs.
  • The states with the fastest rate of clean energy job growth were Idaho (7.7 percent increase), Texas (6.0 percent increase), and New Mexico (5.9 percent increase).

Clean Energy Jobs Are Growing Rapidly: 

• Wind turbine service technicians were the projected fastest-growing U.S. occupation in the next decade, with a projected 60.1 percent increase in employment between 2023 and 2033.
• Solar photovoltaic installers were the projected second fastest-growing U.S. occupation in the next decade, with a projected 48.0 percent increase in employment between 2023 and 2033.

Clean Energy Jobs Support Middle-Class Americans

Clean Energy Jobs Pay Well

Clean Energy Jobs Pay More Than Comparable Jobs: 

• Clean energy jobs pay about 21 percent higher than average.
• Jobs in clean energy pay 25 percent more than the national median wage and were more likely to include health insurance and retirement benefits according to a study of federal occupational wage and benefits data. 
• Workers who landed a clean energy job increased their income by eight to 19 percent, earning $5 to $10 more per hour. 
• Clean energy workers who completed apprenticeships earned about $300,000 more in wages and benefits across their careers than workers who did not complete apprenticeships. 

The Inflation Reduction Act Supported Well-Paying Jobs:

• Clean energy projects that pay prevailing wages to workers for construction, alteration, and repair of clean energy projects and hire registered apprentices to work on clean energy projects will receive a fivefold increase in clean energy deployment tax credits.

Clean Energy Jobs See Higher Rates Of Unionization

Clean Energy Jobs Are Unionized At Higher Rates Than The Overall Energy And Private Sector Workforces: 

• According to the Department of Energy’s U.S. Energy and Employment Report, clean energy industries are represented by a union or covered under a project labor agreement at a higher rate than traditional energy employment for the first time, with 12.4 percent of clean energy jobs represented by a union. 
• Jobs in the clean energy sector are also unionized at a rate higher than the national private sector average of 7 percent:
  • 11 percent of solar energy workers are represented by a union or covered under a project labor or collective bargaining agreement.
  • 12 percent of wind energy workers are represented by a union or covered under a project labor or collective bargaining agreement.
  • 21 percent of Transmission, Distribution, and Storage workers are represented by a union or covered under a project labor or collective bargaining agreement.
  • 13 percent of Energy Efficiency workers are represented by a union or covered under a project labor or collective bargaining agreement.
• Union energy jobs were 50 percent more likely to provide diversity and inclusion training programs aimed at bolstering workforce diversity and inclusion than non-union employers.

Companies Are Turning To Union Labor For Clean Energy Projects:

• Equinor signed a project labor agreement with the IBEW for the South Brooklyn Marine Terminal, a staging area for commercial-scale offshore wind farms.
• Investor-owned utilities in Wisconsin signed a pledge to use union labor to the “fullest extent possible” in utility-scale renewable energy installations.

Unions Support Clean Energy Projects:

• The United Steelworkers union said the Inflation Reduction Act was driving major growth in membership and job opportunities because of new clean energy projects.
• The Laborers’ International Union of North America praised the Inflation Reduction Act for requiring developers to meet labor standards and for supporting construction jobs. 

The Inflation Reduction Act Supported Union Jobs:

• Clean energy projects that pay prevailing wages to workers for construction, alteration, and repair of clean energy projects and hire registered apprentices to work on clean energy projects will receive a fivefold increase in clean energy deployment tax credits.
• At least 6,285 clean energy projects that are planned, under construction, or recently completed are eligible for Inflation Reduction Act incentives tied to labor standards. 
• These projects have the potential to support 3,947,670 union jobs while creating over $2 trillion in investments and 1,091,966 MW of clean power. 

Clean Energy Jobs Don’t Require College Degrees

The Majority Of New Clean Energy Jobs Don’t Require College Degrees: 

• 75 percent of clean energy jobs created by the Inflation Reduction Act do not require a four-year college degree. 
• Only 43 percent of new jobs in the solar industry required a bachelor’s degree in 2023.
• The Inflation Reduction Act’s additional incentives for projects that use registered apprentices will support the growth of apprenticeship programs, the “gold standard” in workforce training programs for workers without a four-year college degree. 

There Are A Wide Range Of Clean Energy Job Opportunities

The Clean Energy Sector Has Opportunities For Everyone:

• There are green job opportunities for everyone, ranging from manufacturing and installation to product design, supply management, economic analysis, and technology development.

Experience In The Clean Energy Industry Opens Job Opportunities:

• The number of job postings on LinkedIn that require at least one sustainability-related skill grew 22.4 percent between 2022 and 2023. 
• Workers with at least one green skill are hired at a 29 percent faster median rate than workers without green skills. 

The Inflation Reduction Act Created Climate Jobs:

• The American Climate Corps was set to employ 20,000 young people and bolster local initiatives to expand access to clean energy and protect natural lands.
  • The Climate Corps swore in its first class of 9,000 members in June 2024.

The Clean Energy Sector Creates Jobs For Young People

The Clean Energy Workforce Employs An Outsized Number Of Young Workers

 Young People Make Up A Growing Percentage Of The Clean Energy Workforce: 

• Young workers between the ages of 18 and 29 make up 31 percent of the solar energy workforce, which is 1 percent higher than the energy workforce average and 9 percent higher than the national workforce average.
• Young workers between the ages of 18 and 29 make up 30 percent of the wind energy workforce, 8 percent higher than the national workforce average.
• Young workers between the ages of 18 and 29 make up 26 percent of the Transmission, Distribution, and Storage workforce, 4 percent higher than the national workforce average.
• Young workers between the ages of 18 and 29 make up 31 percent of the Energy Efficiency workforce, 1 percent higher than the energy workforce average and 9 percent higher than the national workforce average.
• Comparatively, young workers between the ages of 18 and 29 make up 25 percent of the coal electric power generation workforce, 26 percent of the natural gas electric power generation workforce, 30 percent of the oil electric power generation workforce, 31 percent of the petroleum fuels workforce, 32 percent of the natural gas fuels workforce, and 31 percent of the coal fuels workforce.

Clean Energy Companies Offer Mentorship And Job Training Programs To Attract Young Talent: 

• The 2022 National Solar Jobs Census found that 38 percent of U.S. solar firms offer a mentorship or sponsorship program.
  • 34 percent of U.S. solar firms offer general mentorship programs.
  • 21 percent of U.S. solar firms offer on-the-job training.
  • 15 percent of U.S. solar firms offer apprenticeship programs.
  • 13 percent of U.S. solar firms offer internship programs
  • 9 percent of U.S. solar firms partner with schools or other educational entities for recruiting.
  • 8 percent of U.S. solar firms offer informal training programs.
• Numerous clean energy companies offer internship programs:
  • Volt Energy Utility established an Environmental Justice Ambassador Fellowship for HBCU students to address the low percentage of HBCU students who enter sustainability careers by providing career development seminars and helping fellows find paid full-time internships in the sustainability field.
  • During the 2022-2023 school year, NextEra Energy has recruited its largest intern class. 
  • First Solar hired more interns and early career associates in 2023 than ever before. First Solar directly engages with local community colleges and high schools in Ohio, which the company said was “critical” to its ability to fill manufacturing and skilled trade jobs.

Moreover, Polling Shows That Young Workers Are Enthusiastic About Opportunities In The Clean Energy Industry And Care About The Mission Of Their Workplace:

• The average number of applications to jobs at clean energy companies increased by 71 percent on Handshake, an online recruiting platform for higher education students and alumni, compared to a 35 percent increase across all industries.
• A survey from the Renewable Energy Institute found that 67 percent of respondents ages 18-25 said they consider a company’s sustainability plan before accepting a job.
• Two-thirds of U.S. adults younger than 40 say global climate change is an extremely or very serious problem.
• According to a study from the Lancet, about 70 percent of people aged 16-25 are extremely or very worried about the climate.
• College students are also increasingly interested in environmental programs, with the number of environmental science degrees awarded by four-year universities growing 24 percent between 2016 and 2022. 

Clean Energy Jobs Can’t Be Outsourced

Clean Energy Jobs Can’t Be Exported:

• Jobs in the clean energy and energy efficiency sectors are in installation, maintenance, and construction, contributing to local economies and creating stable job opportunities that can’t be outsourced.

The Inflation Reduction Act Incentivized Local Manufacturing:

• The Inflation Reduction Act provided tax credits for domestic manufacturing of clean energy technologies, ensuring jobs and investments stay in the U.S.

Clean Energy Supports Communities Across America

Clean Energy Supports Local Governments

Full Backgrounder Here:

Clean Energy Helps Local Governments

Clean Energy Provides Tax Revenue To State And Local Governments:

• State and county governments received $4,661,291,493 in tax revenue from wind and geothermal energy production in 2022.
• In 2021, the clean power industry paid $1.2 billion in state and local taxes.

Clean Energy Helps Local Governments Save Money:

• Compared to conventional buildings, many new and renovated energy-efficient buildings offer energy cost savings of as much as 50 percent.
• In Peterborough, New Hampshire, the town’s wastewater treatment plant runs on solar power, saving $20,000 in energy costs per year. 
• In 2017, Cincinnati’s Water Works began the transition from coal-powered energy to solar. The switch to solar saves approximately $15,800 per year in energy costs.
• St. Paul, Minnesota, partnered with its electric utility to retrofit heating and cooling systems, purchase energy-efficient products, replace street lighting and traffic signals, and implement other energy-efficiency improvements, saving nearly $8 million in energy costs annually. 
• Jefferson County, Colorado, saved approximately $280,000 per year in annual energy costs by installing energy efficiency upgrades in municipal buildings.
• The City of Fullerton, California, will save $12.1 million in energy costs through energy efficiency improvements, distributed clean energy resources, and expanding electric vehicle use. 
• Burlington, Vermont, increased its credit rating after sourcing 100 percent clean energy because of the positive economic impact and the limited threat of future carbon regulations. 
• Boston, Massachusetts, completed the first phase of its initiative to invest in energy efficiency and clean energy with projected savings of $680,000 in the first year.

Clean Energy Helps School Districts Save Money

Schools Increasingly Rely On Clean Energy:

• Over 6.2 million students, more than 1 in 9 across the country, now attend schools powered by solar.
• More than 800 schools added solar panels in 2023, meaning at least one school went solar every day during the 2022 to 2023 school year.
• Nearly 1 in 10 K-12 public and private schools in the U.S. were using solar energy by early 2022.
  • Since 2014, K-12 schools have seen a 139 percent increase in solar installations. In 2020, 5.5 percent of all public and private K-12 schools and 16 percent of all K-12 school districts had embraced solar technology. 
  • About 8,400 schools have solar installations, and the solar capacity at schools has tripled in 8 years. 
  • Half of all public schools with solar panels are eligible for Title 1 funding, meaning at least 40 percent of their students qualify as low-income. 
  • As of 2022, California and New Jersey were the top two states for school solar power installations, with 2,819 and 662 schools installed solar, respectively.
    • Virginia ranked 13th as of 2022, with 154 schools powered by solar.

Clean Energy Is Not Expensive For Schools: 

• The vast majority of schools go solar with minimal to no upfront capital costs. According to a 2020 report, 79 percent of the solar installed in schools were financed by a third party.
• The Inflation Reduction Act allowed schools to cover at least 30 percent of the cost of solar projects through direct pay tax credits from the federal government. 
• The Bipartisan Infrastructure Law provides new federal funding for school energy upgrades and incentives to install solar energy. 

The Inflation Reduction Act Let Schools Access Clean Energy Tax Credits:

• Direct pay provisions in the Inflation Reduction Act allowed tax-exempt entities, like schools, to receive tax-free payment for qualifying projects for the tax year clean energy initiatives were put into service. 
• Schools can receive tax credits for electric school buses, upgrading facilities to bolster efficiency, or installing clean energy onsite 

Schools Save Money By Switching To Clean Energy:

• School districts across the nation are already seeing savings from switching to clean energy:
  • In March 2021, savings from installing nearly 1,500 solar panels at a high school in Batesville, rural Arkansas, resulted in all teachers receiving up to $15,000 raises. The school district saved more than $600,000 in utility costs through solar installation.
    • The installation helped slash the district’s annual energy consumption by 1.6 million kilowatts and in three years, generated enough savings to transform the district’s $250,000 budget deficit into a $1.8 million surplus.
    • The school district is set to save at least $2.4 million over the next two decades from the solar project.
    • The Batesville school district was the first in the state to go solar after legislation passed in 2018 that permitted both third-party solar ownership. 
  • Tucson Unified School District in Arizona, the state’s third-largest school district, expects to save $43 million over 20 years from its solar panel installation. 
  • Solar installations at seven schools in Orange County, Virginia, would offset up to 91 percent of electric usage per school, saving about $130,000 a year and $9.5 million over 35 years.
  • In Heart-Butte, Montana, three-quarters of the energy credits generated by the district’s new solar panels are used to help lower the electric bills of households in the community, which is located on the Blackfeet Indian Reservation. 
  • A school district in Louisa County, Virginia, is forecast to save $8 million in three decades from solar panels. Savings will be used to enhance existing school programs and create new programs.
  • In Wise County, Virginia, schools used the savings from installing solar panels to pay for a solar apprenticeship program.
  • Solar installations at the North Putnam Community School Corporation in Bainbridge, Indiana, saved $241,895 in its first year and are projected to save the district a total of $8 million over 20 years.
    • The school added 300 kW of battery storage to complement an existing 1.6 MW solar farm, allowing the school to be used as a disaster shelter. 
    • The project created a positive cash flow for the district by reducing electricity bills and allowing the district to sell energy back to the grid. 
  • Solar installations at 12 public schools in Virginia’s Prince William County saved the district $16 million in energy costs over the next 25 years while avoiding 4,005 tons of carbon dioxide emission.
  • Munday Consolidated Independent School District in North Texas saved over $40,000 yearly on energy costs thanks to an onsite solar project.
  • The Steelton-Highspire School District in Pennsylvania’s solar installation saved the district more than $13,000 annually. 
  • The Croton-Harmon Union Free School District in New York recovered $1.5 million in the 18 months after it installed an energy-saving project, including rooftop solar and efficiency upgrades.
  • The Creighton School District in Arizona installed solar panels on school roof buildings using funding from the Inflation Reduction Act to cover 40 percent of installation costs.
    • The District’s superintendent, Jay Mann, said the IRA’s financial incentives were a “massive” driver for the project by making it affordable for the district to install solar panels.
  • The Menasha School District will open Wisconsin’s second net-zero school in the fall of 2025. The clean energy systems at the school are expected to save $140,000 per year.

Clean Energy Supports Rural Landowners

Clean Energy Creates Jobs In Rural Communities:

• Since the Inflation Reduction Act passed, companies have announced 92 new clean projects in rural communities, bringing $44.9 billion in investment and 43,570 jobs to rural communities across 31 states.
• A report from E2 found clean energy projects in rural areas provide almost $5 billion in new tax revenues.

Clean Energy Benefits Farmers:

• Clean energy is a “lifeline” for farmers because it provides steady income and affordable power, which guarantees income even when crop prices fall or drought strikes.
• Some farmers adopted agrivoltaics, which let them grow crops beneath solar panels, which is generating a second income path for them.

The Inflation Reduction Act Expanded Access To Clean Energy In Rural Areas:

• The Rural Energy for America Program provides $2 billion in grants to install solar panels and wind turbines in rural communities and improve energy efficiency in rural buildings. 
• The Empowering Rural America Program includes $9.7 billion for grants and loans to support the more than 900 rural electric cooperatives.
  • Direct pay provisions in the Inflation Reduction Act also allow electric cooperatives to access the full value of clean energy tax credits, driving savings for rural ratepayers. 
• The Inflation Reduction Act appropriated $1 billion for the Powering Affordable Clean Energy program, a partially forgivable loan program for entities that build clean energy or energy storage systems in rural communities. 

Clean Energy Supports Landowners:

• Wind and solar deliver over $2.9 billion each year in state and local tax payments and landowner lease payments to local communities. 
• In 2021, the clean power industry paid $1.3 billion to landowners across the U.S.
• Clean energy leases provided a key source of income for farmers, representing as much as 6 percent of gross cash income for farmers in Pennsylvania and Oklahoma.
• Farmers received between $3,000 and $7,000 annually for leasing the small area of land needed for each wind turbine.

Clean Energy Supports Low-Income Communities

Clean Energy Investments Created Jobs In Low-Income Communities:

• Analysis from the Treasury Department found that the overwhelming majority of clean energy investments since the Inflation Reduction Act passed have been in economically disadvantaged counties:
  • 81 percent of clean investment dollars announced since the Inflation Reduction Act passed have been for projects in counties with below-average weekly wages.
  • 70 percent of clean energy investment dollars were announced in counties with higher unemployment than the national average.
  • 78 percent of clean energy investment dollars were announced in counties with below-average median household income.
  • 86 percent of clean energy investment dollars since the Inflation Reduction Act passed were announced in counties with below-average college graduation rates.

The Inflation Reduction Act Was A Major Driver Of Clean Energy Investments In Low-Income Communities:

• As of December 2023, 75 percent of announced clean energy investments were in counties with median incomes below the U.S. aggregate median, compared to 68 percent before the Inflation Reduction Act.
• As of December 2023, 84 percent of announced clean energy investments were in counties with college graduation rates below the U.S. aggregate rate, compared to 79 percent before the Inflation Reduction Act.
• The trend holds across clean energy technologies.
• In the first 30-day application period, the Low-Income Communities Bonus Tax Credit Program received more than 46,000 applications for new wind and solar projects, representing over 8 GW of planned capacity.

The Inflation Reduction Act Was Driving Investments In Counties With Below-Average Median Household Income And Below-Average College Graduation Rates:

• In the South, 81 percent of new clean energy investments are in below-average income counties, and 90 percent are in below-average college graduation counties.
• In the West, 66 percent of new clean energy investments are in below-average income counties, and 75 percent are in below-average college graduation counties.
• In the Northeast, 77 percent of new clean energy investments are in below-average income communities, and 71 percent are in below-average college graduation counties.
• In the Midwest, 81 percent of new clean energy investments are in below-average income communities, and 88 percent are in below-average college graduation counties.

Clean Energy Creates Economic Opportunity In Fossil Fuel Communities

The Inflation Reduction Act Included Tax Credit Bonuses To Encourage Investment In “Energy Communities”:

• Energy Communities are areas with a recent coal mine or power plant closure, high fossil fuel employment, and a recent high unemployment rate, or areas with brownfield sites.
• The bonus tax credit is intended to increase clean energy investments in communities where the economy was previously centered on fossil fuels.

Early Data Suggested The Energy Community Bonus Is Shifting New Clean Energy Investment Toward Energy Communities:

• Since the passage of the Inflation Reduction Act, Energy Communities have seen a $2.4 billion increase in monthly investment announcements compared to before the passage of the Inflation Reduction Act. Comparatively, non-energy communities have seen a $1 billion increase in monthly announced investment.
• An analysis of the Clean Energy Investment’s announcement tracker between 2018 and June 2023 found that clean energy investments found that after the Inflation Reduction Act passed, clean energy investment announcements increased to $5 billion per month in Energy Communities and $4 billion per month in all other communities.

Clean Energy Strengthens The Grid 

Our full backgrounder on grid reliability can be found here.

Clean Energy Bolsters Grid Reliability

Clean Energy Makes The Grid More Reliable:

• Clean energy strengthens the grid not only by providing direct energy resources but also by providing so-called ancillary grid services – which are functions grid operators use to maintain operations (and reliability) beyond sufficient energy generations.
  • These services include voltage control, frequency response, and ramping capabilities. 
• Studies show clean energy sources are well-equipped to provide these ancillary services — sometimes even more effectively and efficiently than conventional fossil fuel generators.
  • A NREL, First Solar, and California ISO (CAISO) study found that solar projects with inverter controls were able to provide ancillary  “services that range from spinning reserves, load following, voltage support, ramping, frequency response, variability smoothing and frequency regulation to power quality.”
    • Moreover, the solar plant performed comparably to, or better than, conventional fossil fuel-fired power plants in all test categories and services.
  • A similar study conducted on a wind farm confirmed that using smart inverter controls, wind power plants can “provide balancing or regulation up and down, voltage regulation control, active power control through ramping capability, and frequency response.” 
  • Xcel subsidiary Public Service Company of Colorado has been using wind resources for a decade to provide ancillary reliability services to the grid.
• Large-scale batteries, increasingly paired with utility-scale solar and wind projects, provide the flexibility necessary to meet demand during peak hours.
  • Batteries also allow clean energy to power the grid around the clock, even when there is low direct availability of solar and wind power.

100% Clean Energy Grids Are Feasible

100 Percent Clean Energy Grids Are Feasible: 

• A meta-analysis from Energy Innovation found achieving 80 percent clean electricity by 2030 was feasible and would not sacrifice reliability.
  • All studies analyzed in Energy Innovation’s meta-analysis found that the U.S. power system would be reliable with a high percentage of clean energy penetration.
• Between 2013 and 2017, wind and solar did not cause any electric reliability issues. 
• Distributed clean energy speeds recovery from disasters or blackouts because it doesn’t rely on a complex distribution grid.
• Comparatively, coal and gas plants are extraordinarily complex, with numerous moving parts, which increases the risk of failure in extreme environments.
• Wind and solar generated more electricity than coal between January and May 2023. 

Clean Energy Has Proven It Can Meet Demand

U.S. Energy Demand Is On The Rise

• By 2050, U.S. electricity demand, driven by data centers and transportation electrification, is expected to increase by 50%.
  • One report found that data center energy consumption in the U.S. is projected to grow by 300% in the next decade. 
  • By 2050, E-mobility power consumption is projected to increase by 9000% by 2050. 

Clean Energy Can Meet Electricity Demand:

• Wind and solar generated more electricity than coal between January and May 2023. 
• Solar power also helped meet record-high demand during the summer 2023 Texas heatwave.

The Inflation Reduction Act Expanded Access To Tax Credits

The Inflation Reduction Act Allowed Tax Exempt Entities To Access Tax Credits

The Inflation Reduction Act Established Direct Pay For Clean Energy Credits:

• Direct pay provisions in the Inflation Reduction Act allowed entities that do not pay taxes to receive a refund from the IRS for tax credits on clean energy projects.
• The provision allows nonprofit entities, including local governments, public utilities, electric cooperatives, hospitals, and universities, to benefit from clean energy tax credits.

The Inflation Reduction Act Allowed Companies To Profit From Clean Energy Investments

The Inflation Reduction Act Allowed Companies To Transfer Their Tax Credits To Other Companies:

• The Inflation Reduction Act allowed companies receiving clean energy tax credits to sell all, or portions, of their tax credits to an unrelated company for cash.
• The provision expands the pool of clean energy investors while increasing demand for tax credits and new clean energy projects.
• Transferability is expanding the renewable energy investor base by allowing companies to purchase tax credits without taking equity risks in the project, increasing the number of potential buyers outside of companies with strong ties to the clean energy industry.

Clean Energy Is Reliable

Our full backgrounder on grid reliability can be found here.