Clean Energy Manufacturing’s Role in Swing States
TL/DR –
The clean energy manufacturing industry in the US is beginning to boom with the establishment of new factories for solar panels and batteries. The Inflation Reduction Act and other bipartisan policies have initiated onshoring, creating jobs and reshaping towns across the country. However, many factories are yet to break ground and the workforce is smaller than in previous industries, implying this industrial revival is only in its early stages.
American Manufacturing on the Rise with Clean Energy Boom
During the Clinton and Bush presidencies, American manufacturing was declining. The consensus accepted job outflow to other countries for less expensive goods. However, with strategic technologies, the world is shifting back to domestic manufacturing. The infrastructure law and the CHIPS Act, backed by bipartisan support, initiated the onshoring, while the Inflation Reduction Act, passed by Democrats, accelerated the trend for the booming clean energy industry.
To observe the impact of these political and economic changes on American towns and cities, I embarked on a road trip this summer to swing states where voters will largely determine the future of these policies.
I visited Dalton, Georgia, a carpet-making town that now hosts the largest solar-panel factory in the country. I explored Greater Detroit for the future of auto manufacturing, discovered new factories for energy-efficient windows and industrial heat pumps. In Pennsylvania, I witnessed revived steel factories manufacturing advanced batteries or steel for solar plants.
The Emergence of Clean Energy Manufacturing
Over past decades, U.S. cleantech industry has primarily imported goods. The Inflation Reduction Act altered this trend. An increasing number of new solar panel factories now adequately meet national demand. A few companies are also manufacturing high-value silicon wafers and cells. Though the construction of battery factories is slower, significant operations have already opened in the Rust Belt and Southeast.
Future of Clean Energy Manufacturing
Despite early progress, many factories announced since the IRA passed have yet to commence construction. Some companies have only secured land or are waiting for the IRS to finalize an IRA tax credit. This delay is particularly noticeable in Michigan, where Gov. Gretchen Whitmer is banking on electric vehicles to boost the state’s manufacturing economy. However, the battery factory buildout is slow and not hiring many workers yet.
In Pennsylvania, the clean energy industrial revival is only beginning. I visited three operating factories. Although these factories provide jobs that pay above minimum wage, they have not reached the employment levels of the previous steel and industrial plants.
Impacts of Clean Energy Manufacturing on Communities
In Dalton, Georgia, a 30,000-person town, locals shared their opinions on the Qcells solar factory setting up shop in the so-called “Carpet Capital of the World.”
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