**Washington D.C.**: The U.S. is witnessing a surge in renewable energy manufacturing, spurred by investments and tax incentives, with 160 facilities announced since August 2022. However, challenges remain, including political opposition and supply chain issues, as businesses strive for sustainable practices.
The shift towards renewable energy-powered production has accelerated in the United States, particularly since the introduction of tax credits under the Inflation Reduction Act. A notable statistic is the announcement of at least 160 clean energy manufacturing facilities or expansions since August 2022, with 47 of these slated for 2024 alone. Collectively, these developments are projected to create around 100,000 new manufacturing jobs and catalyse investments of at least $500 billion, of which $75 billion has already been disbursed.
In 2024, domestic manufacturing of solar modules experienced significant growth, surpassing 50 gigawatts (GW), enough to accommodate the entire current demand for solar energy in the U.S. New or expanded manufacturing facilities have emerged in states such as Alabama, Florida, Ohio, and Texas. Additionally, the United States restarted its manufacturing of silicon cells for solar energy for the first time since 2019.
Despite these advances, the renewable energy sector is contending with a range of challenges. Issues such as limited access to transmission, high interest rates, local opposition to new siting, ongoing supply chain complications, and attempts to misinform the public have hindered progress. The political landscape, particularly with the Trump administration’s focus on fossil fuels, has seen a resurgence of executive orders aimed at reversing policies set during the Biden administration. Strategies prioritising fossil fuel extraction and easing permitting regulations have been met with skepticism from certain proponents of renewable energy.
According to the International Energy Agency (IEA), manufacturing and industrial users consume approximately one third of global energy. Transitioning to renewable energy as the primary source of this consumption could significantly contribute to climate change mitigation. Businesses are encouraged to source renewable electricity through local contracts, generate on-site energy with solar panels or wind turbines, and develop battery storage facilities to ensure a steady power supply.
The potential for businesses to implement renewable energy practices is reflected in the 2025 Global 100 list of the world’s most sustainable companies, which highlights efforts to invest in greener alternatives despite pressures from pro-fossil fuel narratives.
Prominent companies in the renewable sector are already making strides. Enphase Energy, based in Fremont, California, reported that its microinverters have produced 80.6 terawatt-hours (TWh) of clean energy since its inception. By partnering with GRID Alternatives, the company has facilitated solar installations for over 10,000 low- and moderate-income households. Additionally, it has attained high ESG ratings, showcasing its commitment to sustainable practices.
First Solar, Inc., located in Tempe, Arizona, has indicated that its solar products are expected to displace 84 million metric tons of carbon dioxide equivalent annually by 2030. In 2023 alone, First Solar’s manufacturing output is estimated to account for a reduction of 7.6 million metric tons of CO2 emissions per year.
Steel Dynamics, headquartered in Fort Wayne, Indiana, is implementing sustainability measures including electric arc furnace steelmaking and a circular manufacturing model to lower carbon emissions, with a long-term goal of carbon neutrality by 2050.
In the food industry, Oatly has focused on the production of plant-based milk alternatives, which significantly reduce greenhouse gas emissions compared to traditional cow’s milk. Oatly’s facility in Millville, New Jersey, utilises natural gas for steam heat in its production process, even though this raises questions about its overall sustainability. The company intends to transition towards more renewable energy solutions despite facing obstacles like the recent installation of its gas system.
The developments across various sectors illustrate a significant movement towards renewable energy-powered production in the U.S., which is expected to continue shaping the economic landscape in the years to come.
Source: Noah Wire Services
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