In the first quarter of 2025, clean energy and transportation investment in the United States reached $67.3 billion, marking a 6.9% increase from the same period in 2024 but a 3.8% decrease from the previous quarter. Despite the slight decline, clean investment remains a substantial component of US private investment, constituting 4.7% of total private investment in structures, equipment, and durable consumer goods in Q1 2025.
The surge in investment was largely fueled by retail consumer purchases and installations of clean technology, amounting to nearly half of the total investment at $33.5 billion. While this segment experienced growth compared to Q1 2024, it saw a slight dip from the prior quarter. Manufacturing investments also showed an increase compared to Q1 2024 but declined from the previous quarter. Investments in utility-scale clean electricity and industrial decarbonization technologies, however, witnessed a decrease from Q1 2024.
New project announcements presented a mixed outlook, with substantial investments in utility clean electricity projects, particularly in solar and storage. Conversely, industrial decarbonization announcements saw a significant decline compared to the previous year. The report highlighted the cancellation of six clean technology manufacturing projects in Q1 2025, emphasizing the evolving landscape of clean energy supply chains.
The analysis delved into the job creation aspect of clean investments, showcasing the impact of new manufacturing, utility-scale clean electricity, and industrial decarbonization facilities across the US. Since the enactment of the Inflation Reduction Act, these facilities have generated thousands of operational jobs in various states, with significant investment still in the pipeline to create more employment opportunities.
Investment trends in clean energy and transportation revealed a shift in the distribution of actual investments across different segments. Retail investment continued to dominate, while manufacturing investments, particularly in the electric vehicle supply chain, remained a crucial component. Investments in clean energy production and industrial decarbonization remained relatively stable, with utility-scale solar and storage projects taking the lead.
Manufacturing investment, despite a quarterly decline, maintained an upward trend compared to the previous year, with the electric vehicle supply chain driving a significant portion of the investments. New manufacturing projects were announced, signaling ongoing developments in the sector, particularly in the EV supply chain.
In the energy & industry segment, investments in clean energy production and industrial decarbonization slightly decreased from the previous quarter but remained steady compared to Q1 2024. Utility-scale solar and storage projects continued to attract substantial investments, while wind energy projects showed a notable increase. Industrial decarbonization investments, including hydrogen and sustainable aviation fuel, demonstrated varying trends.
Retail investments encompassed consumer spending on zero-emission vehicles, distributed renewable electricity generation and storage, and heat pumps. Despite a quarterly decline in ZEV registrations, the overall investment in this segment showed an increase from the previous year. Distributed electricity generation and storage investments reached a new post-IRA peak in Q1 2025, reflecting the evolving consumer trends towards cleaner energy solutions.
The report underscored the importance of tracking clean technology investments for job creation, with data revealing the significant role of these investments in state-level employment generation. The Clean Investment Monitor, a collaborative project by Rhodium Group and MIT’s Center for Energy and Environmental Policy Research, provides valuable insights into public and private investments in clean technologies in the US, offering a comprehensive view of the evolving landscape of sustainable investments.
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