Climate Matters•October 2, 2024
Clean Energy Investment in Every State
KEY CONCEPTS
Public and private investment in clean energy technologies like solar, wind, zero-emission vehicles, and heat pumps has never been higher.
Clean energy investment in the U.S. more than tripled from 2018 to 2023, when annual clean investment totaled nearly $248 billion — and has accelerated to record-breaking levels through June 2024.
Zero-emission vehicles lead clean investment across the West Coast, much of the Upper Midwest, and throughout the Mid-Atlantic and New England.
Wind power leads clean investment in the Northern Rockies and Plains and into Kansas and Oklahoma, where high wind speeds are concentrated.
Heat pumps lead clean investment across much of the Southeast, where the technology has long been a popular choice for heating and cooling homes and businesses.
California, Texas, Florida, Georgia, and North Carolina have seen the highest overall levels of clean investment since 2018.
More pollution, more warming, more risk
This past summer was Earth’s hottest season on record, during which human-caused climate change increased heat-related health risks for billions around the globe.
Continued burning of fossil fuels causes global temperatures to rise and puts people and ecosystems at risk from more frequent and intense extreme weather events.
Reversing these trends will require accelerated efforts to cut heat-trapping emissions from energy, transportation, agriculture, and more.
Record investment in the clean energy transition
The good news is that investment in the U.S. clean energy transition has never been higher.
At nearly $248 billion, clean investment in 2023 was more than triple what it was in 2018 (adjusted for inflation).
And clean investment has continued to accelerate to record-breaking levels through the first half of 2024.
That’s according to the Clean Investment Monitor, a database from Rhodium Group and the Massachusetts Institute of Technology that tracks private and public investment in the manufacture and deployment (including retail purchases) of emissions-reducing technologies in the U.S.
Clean investment is key to meeting U.S. climate goals
Clean investment has been accelerating since the 2022 passage of the Inflation Reduction Act which offers incentives for investments in clean technologies.
But reaching the U.S. climate goal (to cut heat-trapping emissions 50% below 2005 levels by 2030) will require further acceleration. Clean investment is an integral part of the nation’s strategy to meet this goal.
While clean investment dollars are not directly linked to emissions reductions, these investments can stimulate the clean energy transition by making clean technologies more available and affordable.
Regional trends in clean investment
Clean investment has occurred at different levels across the U.S. Total clean investment has been highest in the South and West, which together account for 76% of total U.S. clean investment since 2018 (through June 2024).
Total clean investment (Q1 2018 - Q2 2024) | |
|---|---|
South | $428 billion |
West | $327 billion |
Midwest | $149 billion |
Northeast | $90 billion |
Regional trends emerge in terms of the amount of funding flowing to different clean energy technologies:
Zero-emission vehicles lead clean investment across the West Coast, much of the Upper Midwest, and throughout the Mid-Atlantic and New England.
Wind power leads clean investment in the Northern Rockies and Plains, extending into the South with Kansas and Oklahoma where high wind speeds are concentrated and where electricity generated from wind reaches some of the highest levels in the country.
Heat pumps lead clean investment across much of the Southeast, where the technology has long been a popular choice for home heating and cooling.
Clean energy investment in each state
Clean investment has occurred at different levels across U.S. states. California, Texas, Florida, Georgia, and North Carolina have received the highest overall levels of clean investment since 2018.
The top 10 states in terms of total clean investment account for over $617 billion in investment since 2018, or about 62% of all clean investment across the U.S. since 2018.
State | Total clean investment (Q1 2018 - Q2 2024) | Top technology (% of total investment) |
|---|---|---|
California | $191 billion | Zero-emission vehicles (52%) |
Texas | $144 billion | Solar power (32%) |
Florida | $63 billion | Solar power (34%) |
Georgia | $50 billion | Zero-emission vehicles (35%) |
North Carolina | $32 billion | Zero-emission vehicles (39%) |
Arizona | $31 billion | Zero-emission vehicles (33%) |
New York | $30 billion | Zero-emission vehicles (49%) |
Tennessee | $28 billion | Zero-emission vehicles (67%) |
Michigan | $25 billion | Zero-emission vehicles (71%) |
Nevada | $25 billion | Zero-emission vehicles (39%) |
Public and private clean investments have focused on buying, making, and using different technologies in various states. These rankings partly depend on state size, population, natural resources (e.g., sun and wind exposure), and existing infrastructure, such as factories retooled to manufacture clean technologies.
Zero-emission vehicles lead clean investment in 27 states. California has seen the highest level of investment in the purchase and manufacture of zero-emission vehicles since 2018 ($100 billion), followed by: Tennessee ($18.4 billion), Michigan ($17.9 billion), Georgia ($17.5 billion), and New York ($14.8 billion).
Solar power is the most-invested technology in 10 states. Texas has seen the highest level of investment in solar power since 2018 ($46.3 billion), followed by: Florida ($21.7 billion), Virginia ($7.2 billion), Utah ($4.5 billion), and Wisconsin ($3.8 billion).
Wind power leads clean investment in nine states. Oklahoma has seen the highest level of investment in wind power since 2018 ($10 billion), followed by: Iowa ($9 billion), Kansas ($6 billion), Wyoming ($5.1 billion), and New Mexico ($4.6 billion).
Heat pumps lead clean investment in four states: South Carolina ($6.3 billion), Alabama ($5.8 billion), Louisiana ($2.8 billion), and Mississippi ($2.4 billion).
Carbon management, which includes carbon capture and storage, has received the most clean investment in only one state: West Virginia, where it accounts for $1.1 billion since 2018.
Clean energy technologies
The Clean Investment Monitor tracks public and private investment in the manufacture and deployment of a set of emissions-reducing technologies in the U.S. These clean technologies are eligible for tax credits under existing policies such as the Inflation Reduction Act, and include:
Zero-emission vehicles: These vehicles use electric motors and have low or no tailpipe emissions.
Transportation is the leading source of heat-trapping pollution in 20 states, and accounts for 28% of total U.S. greenhouse gas emissions.
Investment in this technology includes the purchase of zero-emissions vehicles by households and businesses, as well as the manufacture of these vehicles and the batteries they run on (see Methodology).
Solar and wind power: Solar panels and wind turbines convert energy from the sun and wind into electricity, providing a clean, renewable alternative to electricity generated by burning fossil fuels such as coal or natural gas (methane gas).
Electric power is the leading source of heat-trapping pollution in 17 states, and accounts for 25% of U.S. greenhouse gas emissions.
Investment in these technologies include the manufacture of solar panels and wind turbines, the deployment and operations of these large-scale energy sources, as well as renewable energy storage to be dispatched during peak demand (see Methodology).
Heat pumps: These devices heat and cool buildings using electricity to transfer heat between indoor and outdoor spaces. Heat pumps are an energy-efficient alternative to furnaces and air conditioners.
Energy use in homes and commercial buildings makes up 13% of U.S. emissions.
Investment in this technology includes the purchase and installation of heat pumps by households and businesses (see Methodology).
The Clean Investment Monitor also tracks investment in a range of other clean energy technologies including: carbon management (e.g., carbon capture and storage), nuclear energy, critical minerals, and hydrogen.
LOCAL STORY ANGLES
Explore clean energy investment in your state:
Use Clean Investment Monitor’s data dashboards to compare levels of clean investment across states. Interactive maps show the locations and types of every clean energy project announced across the country.
Three ways to cover climate solutions in your state:
A Decade of U.S. Solar Growth and A Decade of U.S. Wind Growth shows that the U.S. produced enough solar and wind power in 2023 to power 61 million homes — reflecting a 10-year growth curve in both technologies at the state and national levels.
State Solar and Wind Boom to Bring U.S. Toward Climate Targets shows that, by 2035, solar and wind are expected to make up more than 50% of energy capacity in 46 states under current policies.
Climate Solutions in Every State reviews options to quickly reduce emissions in each U.S. state’s top-emitting sector.
CONTACT EXPERTS
Hannah Hess (she/her/hers)
Associate Director
Rhodium Group, Energy & Climate
Relevant expertise: U.S. clean investment tracking; climate change science, economics, and policy
Contact: hhess@rhg.com
Charlotte McClintock (she/her/hers)
Senior Analyst
Rhodium Group, Energy & Climate
Relevant expertise: U.S. clean investment tracking; energy and climate change
Contact: cmcclintock@rhg.com
FIND EXPERTS
Submit a request to SciLine from the American Association for the Advancement of Science or to the Climate Data Concierge from Columbia University. These free services rapidly connect journalists to relevant scientific experts.
Browse maps of climate experts and services at regional NOAA, USDA, and Department of the Interior offices.
Explore databases such as 500 Women Scientists, BIPOC Climate and Energy Justice PhDs, and Diverse Sources to find and amplify diverse expert voices.
Reach out to your State Climate Office or the nearest Land-Grant University to connect with scientists, educators, and extension staff in your local area.
METHODOLOGY
Reported levels of clean energy investment were obtained from the Clean Investment Monitor, which tracks public and private investments in the manufacture, deployment, and retail purchases of clean energy technologies in the U.S. on a quarterly basis. All summary statistics in this Climate Matters brief refer to clean investments made between Q1 2018 and Q2 2024. Investment amounts are presented in terms of 2023 USD unless otherwise noted.
For summary statistics by technology:
Zero-emission vehicles include retail purchases of zero-emissions vehicles, as well as the manufacture of both zero-emission vehicles and batteries.
Solar and wind power includes both the manufacture and the deployment and operations of these technologies, as well as the retail purchases of renewable energy such as rooftop solar panels.
Heat pumps include the retail purchase and installation of heat pumps by households and businesses.
The Clean Investment Monitor is a joint effort of Rhodium Group and MIT's Center for Energy and Environmental Policy Research (CEEPR). Detailed data is available in the Clean Investment Monitor’s online database as well as through Rhodium Group and Breakthrough Energy’s ClimateDeck platform, including breakdowns of all investment trends at the state level.