TL/DR –
The growth rate of clean energy jobs in 2024 was three times greater than the overall job growth, according to the 2025 Clean Jobs America report, with nearly 100,000 new clean energy jobs created. Southern states led the increase and accounted for nearly a third of the 3.6 million clean energy jobs in America. However, changes in federal policy, including the rollback of Inflation Reduction Act tax credits and a freeze on the disbursement of funds to support clean energy programs, are expected to slow growth.
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The Burgeoning Clean Energy Sector Sees Rapid Job Growth
As revealed by a new report, the clean energy sector experienced a much larger job growth rate compared to other sectors last year. The South led the way in this boom, accounting for almost a third of all clean energy jobs. However, changes in federal policies may hinder this momentum, creating an opportunity for states and businesses to step up their clean energy efforts.
Surpassing Overall Job Growth
In 2024, clean energy job growth exceeded overall job growth by more than threefold, as per the 2025 Clean Jobs America report. By the end of the year, nearly 100,000 new clean energy jobs had been created, bringing the total number of Americans working in sectors such as clean vehicles, renewable energy generation, and energy efficiency to almost 3.6 million.
This data was gathered from the Bureau of Labor Statistics and enriched with a survey of over 40,000 companies, conducted by E2, a nonprofit working with investors and business leaders. “What these numbers show is that this was one of the hottest and most promising job sectors in the country at the end of 2024,” said Bob Keefe, E2’s executive director.
Where Growth is Concentrated
According to 2024 data, the biggest boost in job numbers did not come from the West, Idaho being the sole exception. Instead, Southern states like West Virginia, Louisiana, Florida, and Oklahoma were among the top 10 in job growth. This pattern has been consistent since 2020, with Kentucky, Alabama, and Tennessee making the list of the fastest-growing states for clean energy jobs. Consequently, the South is home to nearly a third of the 3.6 million clean energy jobs.
Jobs in the renewable sector have seen a marked increase since 2020, with growth skyrocketing after 2022.
Possible Slowdown on the Horizon
However, the rapid growth of the clean energy sector may be threatened by changes in federal policy. The One Big Beautiful Bill’s rollback of the Inflation Reduction Act (IRA) tax credits and the freezing of IRA fund disbursement for clean energy programs are predicted to slow down growth. E2 estimates that these changes have already led to over $22 billion in canceled clean investments since the start of 2025, resulting in the loss of nearly 17,000 jobs.
Keefe points out that states are realizing the need to take action. In 2024, 90% of the new power capacity came from renewables. With increasing demand from data centers and AI, the fastest and cheapest way to meet these needs is through solar and wind energy. Furthermore, Keefe notes that states can take cues from California, which has enacted bipartisan bills to extend its cap-and-trade program and establish a regional electricity market to improve grid stability.
Moreover, the tech industry is also championing clean energy, despite its high electricity needs. Keefe emphasizes the importance of fostering a workforce capable of driving ongoing energy innovation. “We need to reinvest in innovation in America,” he says. “These companies are going to continue to grow — unfortunately, just not at the pace they have in the past.”
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