Clean Energy Investments Boom After IRA

by | Aug 17, 2023 | Energy

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Clean Energy Investments

In the last 12 months, over $270 billion in capital investments have been announced for clean energy projects and new manufacturing facilities to meet increased demand following the signing of the Inflation Reduction Act. The investment announced during this time period is equivalent to the last eight years’ worth of clean energy investment in the United States. As a result, clean energy technologies have become better, less costly, and easier to obtain. 

A portion of investments have been directed towards building and improving manufacturing facilities to support the demand for solar. The American Clean Power Association anticipates a ninefold increase in solar module production and more than a fifteenfold increase in grid-scale battery storage. Specifically, many southern states are working hard to attract battery and solar manufacturers to their communities as a response to these large investments. Companies like SK Energy, Hanwha Qcells, LG Energy, and SolarEdge have already announced new locations in the southeast. Colite Technologies is also getting a helpful neighbor here in Columbia, South Carolina, Enphase and Flex Energy have formed a manufacturing partnership where they will produce microinverters for solar use in West Columbia.  

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New Manufacturing Facility Announcements

Yellow: Solar    Green: Battery    Blue: Wind

 

Map of new manufacturing facility announcements in the US.

Solar Energy Investments

In the last year, 52 new or expanded solar manufacturing facilities will support more than 76 GW of new manufacturing capacity. For reference, 1 GW could power approximately 876,000 households for one year. Solar alone has received over $9 billion in investment and is one of the fastest growing forms of clean energy. The price of solar has dropped over 50% in the last decade and when combined with tax credits, grants, and other incentive programs, solar is often the first choice for many business owners. 

Number of New Manufacturing Facility Announcements

Yellow: Solar    Green: Battery    Blue: Wind

Number of new manufacturing facility announcements bar graph.

Battery Investments

Battery-related manufacturing is growing so quickly in the southeast that it has been deemed the “Battery Belt” with almost $10 billion in new investments. From new battery production to old battery recycling, the southeast has a stronghold on new manufacturing facilities – largely from the availability of natural resources and a flourishing vehicle manufacturing industry. Despite the south’s previous ambivalence toward clean energy, the relationship between car and battery manufacturers has made them indispensable to the production of clean energy transportation.  

EV Investments

The battery manufacturing industry and electric vehicle manufacturing industry go hand in hand. Improved battery and car technology are driving a boom in EV, bringing better, more affordable cars to the market. Electric cars saw sales exceed $10 million in 2022 and are expected to follow a similar trajectory in 2023. Greater investment in EV charging infrastructure from the federal government through the NEVI program is also helping to encourage more EV adoption. We see the results of their relationship in the physical proximity of manufacturing facilities to each other.  
Battery and EV manufacturing projects announced since Inflation Reduction Act passage map of the US.

What Colite Technologies Offers

Reach your sustainability goals with renewable energy including rooftop solar solutions with Colite Technologies. We specialize in sustainable energy solutions for businesses, from solar to customizable off-grid lighting powered by renewable energy. 

As a full EPC, we provide turnkey non-penetrative commercial solar installations on flat and low slope roofs, ground mount installations, pre-and-post installation roof inspections, system engineering and design, and handle all the permitting and interconnection paperwork. We also have EV charging and battery storage capabilities available as a supporting product for solar installations. 

Our customizable renewable lighting solutions are powered by solar and wind energy and are completely off-grid, eliminating any need for electrical grid connection. They can feature custom branded banners, Wi-Fi, security cameras, and bench seating to maximize function for business parks and multifamily developments.  

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