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Investment grew year-over-year, reaching $213 billion, including $39 billion in investment in clean energy manufacturing, according to a report from MIT and the Rhodium Group.
A report from the Rhodium Group and the Massachusetts Institute of Technology (MIT) showed that the United States commitment to a clean energy transition continues to rise precipitously, with total investment in clean energy, clean transportation, building electrification and carbon management reaching 213 billion dollars in the last year (from July 1, 2022 to June 30, 2023).
The $213 billion invested represents a 37% jump compared to investments in 2021/2022, which were $155 billion. Clean investment continues to increase strongly every year. In 2018/2019, total investments reached $81 billion, and have risen every year since.
Domestic manufacturing of clean energy technologies has become an increasing focus in recent years, and rich tax credits and incentives have served as a pulling force. Manufacturing investments totaled $39 billion in 2022/2023, more than double the $17 billion invested in the previous reporting period.
Over the past two years, combined investment announcements in clean energy and electric vehicle manufacturing amounted to $137 billion, a five-fold increase from the previous two years. Rhodium Group estimates that $37 billion of the total announced in the last two years has already been invested. Over the past three quarters, batteries and zero-emission vehicles have represented the largest segment of actual manufacturing investments, followed by solar manufacturing announcements.
“Investment in clean energy production and manufacturing is increasing. New jobs and income are bringing opportunity and optimism to rural communities across the country. “America’s manufacturing hubs are racing to meet new demand for clean energy with a new domestic wind, solar or storage manufacturing facility announced every four days,” said Jason Grumet, CEO of American Clean Power (ACP). ).
Should the currently announced manufacturing facilities come online, ACP estimates a nearly nine-fold increase in solar module production and a more than fifteen-fold increase in grid-scale battery storage, along with significant increases in production of solar cells, polysilicon, ingots and wafers, as well as wind components. The report indicates that if the planned manufacturing facilities come online, US production of solar modules could grow to 62 GW.
Regarding energy production and industrial investments in clean technologies, the report indicates that more than $257 billion in new investments have been announced in the last two years. This represents a 75% increase over the previous two years for investment in clean energy production, carbon dioxide capture or removal, and other forms of industrial decarbonization.
“The majority of these announcements have focused on the complementary technologies of solar PV and grid-connected storage, while announced investment in new wind projects fell by half over the same period,” the report notes.
Only $63 billion of the $257 billion announced has been produced, which the report attributes to the relatively long timelines of large power generation projects. Solar energy represented the largest category of energy and industrial investment in the second quarter of 2023, attracting $8.62 billion. They were followed by storage, with 4,080 million, and wind energy, with 2,030 million.
Retail investment in clean energy is also on the rise. American businesses and households invested $113 billion last year in zero-emission vehicles, heat pumps and distributed energy, such as rooftop solar and energy storage. The fastest growing in this category was zero-emission vehicles (ZEV), which increased 46% and reached $70 billion in retail investment.
“The purchase and installation of residential and commercial rooftop solar systems, other distributed renewables, fuel cells and battery storage has also increased strongly, while heat pump installations slowed last year after four years of growth. significant,” the report states.
The Rhodium Group and MIT database on investments in clean energy transition can be consulted here . |
