'Incentives working' | Climate law spurs $100bn in US solar and storage investments: SEIA
Solar Energy Industries Association finds that nation's manufacturing sector on track to supply 668GW of capacity over next decade
The solar and energy storage industries combined added some $100bn in activity to the US economy on the strength of incentives in landmark climate legislation passed last year, a leading industry advocacy group reported.
The Solar Energy Industries Association (SEIA) released an analysis today that found that billions of dollars of investment had been added to the US economy since passage of the Inflation Reduction Act (IRA) last year.
The IRA provides a slew of federal tax credits to promote demand for utility-scale solar power and formation of a domestic manufacturing supply chain that is not reliant on China for components and materials such as polysilicon.
“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,” said SEIA president and CEO Abigail Ross Hopper.
“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.”
SEIA noted that 51 solar manufacturing facilities have been announced or expanded since passage of the law with 155GW of capacity, accounting for nearly $20bn in investment.
Capacity includes 85GW in solar module making, 43GW in solar cells, 20GW in silicon ingots and wafers, and 7GW in inverters.
The association noted that the US is on track to have 17 times its current manufacturing capacity across all segments of the solar supply chain, which would be enough to supply the majority of new generation.
SEIA forecasts reaching solar power reaching 668GW of accumulated capacity by 2033.
Over the next decade, the solar sector will create 137,000 new jobs to reach half a million jobs, SEIA said.
Power storage likewise saw a banner year in the US, and the association said 65GW of manufacturing capacity has been announced across 14 new or expanded facilities.
Over 3GW of new large-scale energy storage projects have been deployed, and an estimated 100,000 customers have installed a residential solar system paired with battery storage, the association said.
SEIA’s findings are consistent with those of multiple research firms and industry associations that have been announced in recent weeks.