President Joe Biden’s Inflation Reduction Act, the largest climate investment in U.S. history, has greatly impacted since its passing in 2021. This monumental act has spurred over $40 billion in clean energy investments and created thousands of jobs for hardworking Americans. The law incentivized private investors to seek renewable energy sources such as wind and solar power production through tax credits. Despite some criticism from analysts that the lack of scale needed to meet carbon emissions goals makes the legislation ineffective, renewable energy sources have seen an immense increase in use since the law went into effect.
When it was first introduced, this historic bill faced staunch opposition from Congressional Republicans who attempted to block its passage with a party-line “no” vote and industry groups warning that billions spent would lead to an inflationary rather than relief from it. However, these warnings were largely ignored by lawmakers and the public alike, who saw the benefits that investing in renewable energy could have on our environment and economy. Between 2011-2020, electricity obtained from wind and solar sources quadrupled; however, this falls short of President Biden’s goal of 100% clean electricity by 2035 due to fragile global supply chains reliant on China which produces 80 percent of all components used at all key stages of solar production.
The Inflation Reduction Act is expected to bring over $600 billion in new investments over the next decade resulting in an even greater surge in solar investments without any additional legislation being passed. Hanwha Qcells, one of the leading companies involved with producing solar panels and other components necessary for renewable energy production, recently announced a $2 billion expansion into Georgia with their new manufacturing facility as well as an expansion of their existing plant in Dalton, creating over 2000 jobs so far – two promising signs that Biden’s legislation is succeeding despite prior warnings from analysts and industry leaders alike.
Overall, President Biden’s Inflation Reduction Act has proven itself as a vital piece of climate change-fighting legislation that has tangible impacts on our environment despite limited time since passing. With more investment coming into renewables every day, there is much hope that we can reach our goals set forth by President Biden before 2035 while also continuing to create jobs for working Americans across the country – something we can all be proud of! Further expansion will only add to those successes for years to come.
Jonas Muthoni is an entrepreneur and renewable energy expert. He is the founder of MicroGridMedia.com, a website dedicated to bringing the latest news and information about solar energy and other renewable energy sources to the public. Jonas is passionate about promoting sustainable energy solutions and educating the public about the benefits of renewable energy. He is a regular speaker at industry events and conferences and is committed to driving the transition to a cleaner and more sustainable energy future.