Strengthening Pennsylvania’s Economy Through the Investing in America Agenda
ENERGY JOBS
In 2022, Pennsylvania had a robust energy sector workforce comprising 273,364 employees. Impressively, 45% of the electric power generation workforce in the state was engaged in wind, solar, and hydroelectric projects, while nearly 70,000 individuals found employment in energy efficiency initiatives.
The Inflation Reduction Act is set to expand these opportunities, injecting an estimated $270 million in investments for large-scale clean power generation and storage in Pennsylvania by 2030.
SMALL BUSINESSES
Pennsylvania boasts 1.1 million small businesses, accounting for 99.6% of all businesses in the state and employing 46.2% of its workforce. The Inflation Reduction Act is designed to support these enterprises by offering commercial building owners tax credits of up to $5 per square foot for implementing energy-efficient improvements, ultimately reducing utility expenses. Other programs under the act provide tax credits covering 30% of the costs of installing low-cost solar power systems and acquiring clean trucks and vans for commercial fleets.
CLEAN ENERGY INVESTMENT
Pennsylvania currently harnesses over 4.1 GW of solar, wind, hydro, and storage capacity, along with 9.5 GW of nuclear capacity. Furthermore, there are plans in place for an additional 1.1 GW of clean energy capacity, which can power the equivalent of 124,500 additional homes.
Tax credits within the Inflation Reduction Act are expected to promote investment in wind and solar energy, resulting in reduced energy costs. Projections indicate that the costs of solar and wind power will decrease by 24% and 34%, respectively, over the next 30 years in Pennsylvania. The U.S. Department of Energy has also tracked substantial battery supply chain and solar manufacturing investments in the state, reinforcing its clean energy transition.
CLEAN TRANSPORTATION
Pennsylvania has witnessed a surge in electric vehicle (EV) adoption, with 66,000 EVs registered in the state by the end of 2022, marking a 48% increase from the previous year. Transitioning to electric pickup trucks can save drivers over $1,700 annually in fueling and maintenance costs compared to gasoline-powered trucks, while smaller EVs can yield savings of over $1,200 per year.
The Inflation Reduction Act makes EV purchases more accessible and cost-effective, offering upfront discounts of up to $7,500 for new EVs and up to $4,000 for used ones. Furthermore, Pennsylvania is set to receive over $36 million in federal funding to expand the network of EV charging stations across the state.
Investing In Pennsylvania
Through President Biden’s Investing in America Agenda, the U.S. Department of Energy has allocated over $491 million in the past year to Pennsylvania’s state and local governments. This funding supports energy efficiency enhancements, grid resilience improvements, and programs aimed at aiding low-income households in accessing energy-efficient appliances.
Saving Pennsylvanians Money on Home Energy Bills
The U.S. Department of Energy’s Weatherization Assistance Program and State Energy Program have invested more than $144 million in Pennsylvania since 2015. These initiatives have led to the creation of 1,164 jobs and have benefited over 10,600 homes by reducing energy costs and enhancing safety and health.
Upgrading appliances and enhancing home energy efficiency could save a total of 6,560 GWh of energy in Pennsylvania, enough to power 250,000 homes in the state.
Pennsylvania is set to receive almost $260 million for the implementation of a Home Energy Rebate program, offering low-income households an opportunity to save an average of 53% on their home energy bills through appliance upgrades and energy efficiency improvements.
Additionally, the Inflation Reduction Act includes grants to support the adoption of the latest building energy codes by state and local governments. This initiative could lead to a 13.5% reduction in utility bills for the average new homeowner in Pennsylvania, amounting to annual savings of $341.
