New Investments and Economic Opportunity: Year One of the Inflation Reduction Act

Last year, the Inflation Reduction Act (IRA) became law on August 16, making headlines everywhere from climate-focused trade publications to major national morning shows (we wrote about the legislation’s significance too). It was often described as an unprecedented investment in America’s energy transition; a generational attempt to wrest our future away from the damaging grip of fossil fuels.

One year later, a similar flurry of media coverage is reflecting on the progress that has—or hasn’t—been inspired by the IRA. This time, the headlines pose a stark and high-stakes question: After its first 365 days, has our best attempt at action on renewable energy been effective in moving the country toward a cleaner future?

Just like any major legislative action, the IRA has shown its strengths and weaknesses. But an ongoing series of investments in clean energy infrastructure over the last year and a growing belief in the economic promise of renewable power are clear evidence that we’re successfully (and quickly) entering into a new, brighter era for America’s energy systems.

Recently announced renewable energy projects have added manufacturing jobs to states across the country. In a piece titled “The Clean Energy Future Is Arriving Faster Than You Think," The New York Times explores Tulsa’s historical position as a titan of American oil and its emerging place as a hub for clean energy, specifically citing the financial benefits of renewable power that have been effective in winning over formerly skeptical residents. All across the country, energy industry workers have come to see the importance of cost savings in making a persuasive argument for cleaner power sources—a case that has been further bolstered by the passage of the IRA.

These encouraging signs of progress are paralleled by the high-level behavioral changes of corporate decision-makers and consumers alike. More than 100 new clean manufacturing projects have been announced across the country in the last year. Global investors are expected to contribute more to solar power than oil drilling for the first time in 2023, and U.S. sales have spiked for energy-oriented products ranging from electric vehicles to solar panels. Job growth in the clean energy sector was outpacing overall workforce trends even before the passage of the IRA, and now, projects announced since last August have created more than 170,000 additional jobs focused on renewables.

We’ve also enjoyed some pretty big successes here at Catalyst Power over the last year. We expanded the geographic footprint of our operations, delivering cleaner energy solutions to new regions and states. We opened enrollment for the Westmoreland Community Solar Farm in central New York and established a partnership to provide electric vehicle charging services to our customers throughout the Northeast. Most recently, we launched new energy storage solutions for commercial and industrial users, opening doors for businesses to take advantage of additional savings made available by the IRA.

In just twelve months, a remarkable amount of progress has been made toward integrating renewable energy within the daily lives of more Americans, centrally motivated by the indisputable financial advantages of clean power.

Of course, we’re not going to pretend that our power problems have been completely solved or that the IRA is a one-size-fits-all approach to establishing the renewable energy infrastructure America needs. Among other issues, difficult permitting processes remain a challenge in delivering new energy to the people who need it, with lawmakers and activists alike listing permitting reform as a key priority in pursuing further progress. That said, there are deep divisions and political complexities that continue to slow the implementation of simpler permitting processes.

Even so, America’s clean energy landscape is demonstrably different (and stronger) because of the IRA. There are contracts signed and shovels in the ground, hard at work building new facilities for clean energy manufacturing, as a direct result of incentives that exist within the IRA. Very simply, the country’s business environment is more amenable to companies focused on renewable power than it was just over a year ago.

The end result of that large-scale shift? Our capacity for clean energy production is in a position to skyrocket, bringing more reliable and more affordable renewable power to more people all across the country. We’ve said this many times before, but it’s never felt quite so evident: The renewable energy revolution has already begun.

While the IRA has some weak points and unresolved challenges, it’s been undeniably effective in sending a shockwave of new activity across the country. In turn, those who consume energy (that’s all of us) have already begun to benefit, with advantages like greater reliability and lower spending on power bills. Renewable energy prices are now capable of consistently and meaningfully undercutting rates driven by oil and gas. With the tremendous amount of new developments that have been confirmed in the last year alone, our ability to produce, store, and distribute clean power are certain to keep improving at an even faster pace.

A quick look at everything that has changed since last year shows a staggering amount of new development and positive progress. Perhaps most notably, we’ve seen the increasing public recognition of an important truth: It’s not a choice between clean energy and affordability. Clean energy, more than ever, is the affordable choice.

So, are you ready to join the revolution?

It’s a practical, financially sound move to start building your own renewable energy capabilities as soon as possible. In addition to saving money right away, you’ll be poised to take advantage of new technologies and further cost-reducing opportunities the moment they become available.

Year one of the IRA has proven its transformative capabilities—for the country’s business landscape, for our energy infrastructure, and for your bottom line. Don’t miss out on everything in store over the next year (or two, or five, or twenty - yes you can financially benefit for 20+ years with Catalyst Power). Get in touch with our team and join the unstoppable movement toward cleaner, more cost-effective energy today.