THE ENERGY INDUSTRY
IN CHARTS
Looking at Clean Energy Investment and Federal Demonstration Project Funding
In the two years following the passage of the Inflation Reduction Act, businesses and consumers invested $493 billion in clean energy technologies and infrastructure—a 71% increase from the two-year period preceding passage of the law.
Clean energy investments can be organized into the following categories:
- Manufacturing: Investment in the construction or expansion of factories that manufacture clean energy, clean vehicle, building electrification, or carbon management technology.
- Energy and Industry: Investment in new or existing facilities to produce clean energy, capture carbon dioxide emissions, or decarbonize industrial activity.
- Retail: Investment by individual households and businesses purchasing or installing clean electricity generation and storage, clean vehicles, or building electrification technology.
Clean energy investments in all three categories have increased significantly since the passage of the Infrastructure Investment and Jobs Act (November 2021) and Inflation Reduction Act (August 2022).
Figure 6.1: Quarterly U.S. Clean Energy Investment ($ Billions)
Source: Rhodium Group and MIT Center for Energy and Environmental Policy Research (CEEPR)
Over the last full year of data (Q3 2023 to Q2 2024), energy and industry investment exceeded $20 billion per quarter.
During the same period, the top 10 states for investment included:
- Texas ($31 billion)
- California ($15.1 billion)
- Arizona ($5.5 billion)
- Louisiana ($3.9 billion)
- Florida ($2.9 billion)
- Indiana ($2.5 billion)
- Illinois ($2.1 billion)
- Nevada ($2.1 billion)
- Ohio ($2.1 billion)
- New Mexico ($1.9 billion)
Emerging technologies receiving investments include sustainable aviation fuel (SAF), hydrogen, and carbon management.
Figure 6.2: Quarterly U.S. Energy and Industry Investment by Technology ($ Billions)
Source: Rhodium Group and MIT Center for Energy and Environmental Policy Research (CEEPR)
As of September 2024, the Department of Energy (DOE) has awarded $30.8 billion—or roughly half—of the $63 billion appropriated by the Energy Act of 2020 and Infrastructure Investment and Jobs Act to support competitive demonstration programs.
Nearly three-quarters of the funding ($22.1 billion) has been directed to four technologies: hydrogen, industrial decarbonization, transmission, and nuclear.
The largest individual programs are regional clean hydrogen hubs ($7 billion awarded), advanced nuclear reactor demonstration program ($3.2 billion awarded), and battery manufacturing and recycling grant program ($2.8 billion awarded).
Figure 6.3: DOE Funding for Demonstration Projects ($ Billions)
Sources: ClearPath Infrastructure Tracker; ScottMadden analysis