The IRA intends to accelerate the development of clean energy

Nearly one year in, the IRA is making massive investments to create more clean energy manufacturers across the United States.

A 30% tax credit provided by the U.S. climate law that was passed a year ago encourages the use of clean energy even in areas where coal still offers affordable electricity.

On August 16, the Inflation Reduction Act (IRA), America's long-sought response to climate change, will celebrate its first anniversary. This follows a scorching June and July. In a little less than a year, it has encouraged investment in a significant expansion of battery and electric vehicle manufacturing across the states. The American Clean Power Association reports that nearly 80 significant manufacturing facilities for clean energy have been announced, representing an investment equal to that of the previous seven years put together.

The IRA is America's biggest response to climate change after decades of lobbying by the oil, gas, and coal industries kept action at a standstill while carbon emissions increased and made the world hotter and more dangerous. It is intended to accelerate the development of clean energy on a scale that will skew the trajectory of American greenhouse gas emissions. In order to counter China and other countries' early dominance of this crucial industry, it also aims to create domestic supply chains.

Additionally, the law promotes the use of batteries that supply electricity to the grid when there is little wind or when it is dark and the sun is not shining on solar panels. According to Michael McGowan, head of North American infrastructure private markets for consulting firm Mercer Alternatives, it could put the storage industry on the same upward trajectory as solar did a decade ago.