Ajulo Othow started solar and storage company EnerWealth Solutions seven years ago to bring small solar projects to farmland and other locations in rural communities in the Southeast where money is tight and the phrase “green economy” is rarely spoken.

In the past year alone, Othow said the amount of solar power her company has developed went from 2 megawatts of power to 25 — a 1,150% increase due to the Inflation Reduction Act, the massive climate and economic development law passed in 2022.

“What the Inflation Reduction Act now allows us to do is for ordinary people to start taking advantage of this technology,” said Othow, a longtime North Carolina solar industry advocate and president of Black Owners of Solar Services.

The IRA is the Biden Administration’s signature climate law. The historic act is the most aggressive climate policy in US history, rolling out billions in tax credits and other incentives with the goal of reducing economy-wide carbon emissions by 40% by 2030.

Every Republican in Congress voted against the bill, arguing that it was nothing more than handouts to support climate and social justice programs. Some on the extreme right continue to claim that climate change is a hoax. But now some GOP House members who voted against the IRA are urging their leader to consider saving key parts of it.

IRA creates ‘economic revolution’

In fact, it’s the red states that have overwhelmingly benefited from the federal government’s infusion of clean energy money, according to a Report was released today by E2a national nonpartisan group of more than 10,000 business leaders advocating for a cleaner economy and environment.

Friday marks two years since Biden signed the IRA. Companies have announced roughly 330 clean energy and vehicle projects since then, efforts that could create 109,278 jobs and bring in as much as $126 billion in private investment, if implemented, according to the E2 report.

E2’s report breaks down IRA-enhanced projects by state, sector and industry, as well as by congressional district. It found that “nearly 60% of announced projects—representing 85% of investment and 68% of jobs—are in Republican congressional districts.”

Although Ohio Representative Marcy Kaptur, a Democrat, has the largest number of projects—eight—in her district, the next seven congressional districts with the most IRA-subsidized projects are all represented by Republicans—in Georgia, the Carolinas, Nevada, and Oklahoma.

“This is what I truly believe is the greatest economic revolution this country has seen in generations, and it’s because we finally, finally, finally in this country decided to do something about climate change and clean energy,” says Bob Keefe, Managing Director. by E2, during an hour-long online presentation with reporters.

Red government projects are spreading

Among the major projects is South Korea-based solar cell manufacturer QCells. Last year, it announced a $2.5 billion expansion in Dalton, Georgia, which spurred more than 2,500 jobs and helped transform a city known as the “carpet capital of the world” into a clean energy manufacturing destination.

Since 2022, the northern third of Nevada has added more than 5,000 jobs from a $6.6 billion investment in projects such as the Rhyolite Ridge and Thacker Pass lithium mines, as the state aims to become the lithium capital of the United States.

And in North Carolina, $19.7 billion has poured into the state, creating 22 clean energy projects and more than 10,000 jobs in solar, recycling, electric vehicle and battery manufacturing. The investments include a $13.9 billion Toyota Motor North America EV/hybrid battery plant slated to open next year.

E2’s report is based on publicly available information, including press releases and formal government announcements. About a third of the information did not include how much money was invested or how many jobs a project was expected to create, E2 said.

In other words, the impact of the IRA is likely to be broader than the nonprofit’s bottom line. That bodes well for environmentalists and clean energy advocates.

In fact, the QCells project is in the district home to highly vocal GOP Rep. Marjorie Taylor Greene, a climate denier and staunch supporter of former President Donald Trump as he runs for a second term. Nevada US Rep. Mark Amodei joins the MAGA Republicans, who have been pushing for more fossil fuel production in the US – not less.

NC Legislators Block Changes

North Carolina is led by a Democratic governor, Roy Cooper, whose executive order on climate change aims to reduce CO2 emissions by 40% from 2005 levels by next year. But its majority GOP legislature and congressional delegation often rail against clean energy policies.

Cooper succeeded in getting the Legislature to pass a comprehensive energy bill that he signed into law in 2021, three years after his executive order on climate change. In turn, the state legislature has used the state budget to cut environmental protections or shape energy policy.

In 2023, lawmakers added a provision preventing North Carolina from joining a cap-and-trade program — such as the Regional Greenhouse Gas Initiative — to limit emissions from power plants.

That GOP-led states bear the most fruit from the IRA is not surprising. Many, like those in the Midwest and Southeast, are home to large manufacturing operations, such as automakers, that are moving toward an all-hybrid or electric product in the coming decade.

This means that while conservative politicians may scoff at dollars to clean up the environment, they capture spending that spurs new or expanding businesses and jobs.

Georgia is one of five states that has 20 or more projects derived from IRA investments. One of Nevada’s congressional districts has among the highest number of IRA-created jobs. And North Carolina’s multibillion-dollar investment is the highest among the 50 states.

Toyota Battery Manufacturing North Carolina in Liberty is now valued at $13.9 billion. A company spokesman said the IRA helped but was not key in Toyota’s decision to expand the scope of the project, which is slated to start pushing out batteries for electric cars and hybrids next year.

“Incentives can be helpful but are often temporary or subject to changing political dynamics. As a result, Toyota makes long-term investment decisions based on the market, not incentive opportunities,” Eric Booth said in a statement sent to Floodlight.

Some republicans are rethinking opposition to the IRA

In fact, 18 congressional Republicans signed one letter to GOP Speaker Mike Johnson of Louisiana, urging him to be cautious about repealing all or part of the IRA — something Trump has vowed to do if re-elected president.

“Energy tax credits have spurred innovation, spurred investment and created good jobs in many parts of the country — including many districts represented by members of our conference,” the Aug. 6 letter to Johnson said.

The congressmen said they had heard from industry and constituents that rolling back previously issued energy tax credits, particularly on projects already breaking ground, would undermine private investment and halt development.

“A complete repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return,” the letter said.

There has been a noticeable decline in the number of projects, jobs and money invested in the second year of the IRA compared to the first. Keefe chalks it up to, in part, the upcoming election.

“We know that anytime it’s an election year there’s going to be uncertainty about politics,” he said.

Keefe warned that if the IRA is rolled back, “it’s not, you know, tree huggers and environmentalists in San Francisco or New York that will be hurt. It’s the working class people in Georgia, Michigan and North Carolina, Ohio that will be hurt because is where these projects are going.”

This story is part of a one-off series examining the climate impact of the Inflation Reduction Act.