Inflation Reduction Act Boosts Solar Power & Electric Cars

The Inflation Reduction Act (IRA) stands as a monumental legislation in US history. It supports the transition to solar power and electric transport, making it the largest reshoring, climate, and manufacturing legislation.

The US Solar Energy Industries Association (SEIA) recently reported how IRA is propelling solar growth.

Solar Power Surge — Thanks to IRA

“In 2023, the U.S. solar industry added a record 32.4 gigawatts (GW) of new electric capacity, a 37% increase from 2021,” reports SEIA. “Solar constituted 53% of all new electric capacity added last year. SEIA attributes part of this success to the IRA.

SEIA’s Abigail Ross Hopper stated, “The IRA is supercharging solar deployment and increasing US solar module manufacturing by 89% in 2023.”

SEIA predicts enough US solar power capacity in 2034 to power 100 million homes. SEIA outlines a gap of 200 gigawatts between optimistic and pessimistic scenarios in 2034, depending on interest rates, tax credit financing, trade policy, supply chain availability, among others.

IRA incentives boosted solar module manufacturing in the US. From the end of 2022 to 2023, it grew from 8.5 GW to 16.1 GW.

EV Sales Soar — Thanks to IRA

IRA-assisted tax credit has increased Tesla sales, which account for over half of US electric car sales. IRA also reinstated GM’s tax credit eligibility, boosting Chevy Bolt EV and EUV sales.

The IRA extensively boosts US EV production and the supply chain. It has led to investments exceeding $92 billion into EV production and created 84,000 jobs, according to an analysis.

“Investments in zero-emissions vehicles, batteries, and critical minerals have escalated over 250 percent since the passage of the IRA,” according to Center for American Progress (CAP).

IRA is supercharging US cleantech jobs and growth in solar power and the electric vehicle industry. It’s only the beginning.