Opinion: Cutting clean energy investments would kill jobs, hurt Virginians

In a state like Virginia, which is on the front lines of climate change and also solutions to fight it, the significance of the Inflation Reduction Act (IRA) – and the negative impacts of its potential repeal by Congress – cannot be overstated. 

This landmark legislation represents our nation’s most ambitious and transformative step towards securing a clean energy future, infusing billions of dollars of investment in clean energy, spurring economic growth, and making a direct impact on the livelihoods of families and communities across the country. 

Since its passage in 2022, the IRA has generated more than 312,900 clean energy jobs nationwide, with 1,650 of those jobs right here in Virginia. These well-paying jobs are moving our economy towards a sustainable future and ensuring that the benefits of this transition are felt locally in all corners of Virginia. 

In Chesterfield County alone, the IRA has brought in an abundance of clean energy investment, including more than $400 million by Topsoe, a company specializing in carbon emission reduction technology, to build a new manufacturing facility and create over 150 new jobs. 

Dominion Energy is also constructing a 20 MW utility-scale solar facility, enough to power 5,000 homes at peak output. Chesterfield County Public Schools are reaping the benefits of the IRA as well; the school system and local government have partnered with Sun Tribe Solar to bring solar power to facilities via a solar power purchase agreement. Renewable energy investments like these are moving the needle on helping us meet regional energy demand – they should be prioritized over the costly, $1.5 billion polluting gas plant proposed in Chesterfield.

The Act also empowers rural communities and small businesses. A Local Chesterfield farm, Broadfork Farm, has successfully deployed solar power through IRA grants. This has cut the farm’s energy bills in half, enabling further investment in sustainable farming practices.

These targeted investments aimed at pollution reduction and electrification pave the way for a clean, affordable, and sustainable future, and bolster our local infrastructure and economy. They are also key to positioning our Commonwealth as a leader in the clean energy economy and go hand-in-glove with Virginia’s clean energy laws to reach 100% clean electricity by mid-century. 

The IRA is also critical for every Virginia homeowner and business. A critical component of the IRA’s success is its focus on tax incentives. Roughly 70% of the Act’s climate investments are delivered through tax credits aimed at both residents and businesses, offering financial incentives to make clean energy upgrades. This includes things like solar panels, electric vehicles (EVs), home efficiency projects, and heat pumps. By the end of this decade, it is estimated that Americans will collectively claim between $780 billion and $1.2 trillion in tax credits, while saving up to $38 billion on their electricity bills because of the IRA.

The IRA also directs these investments and programs to communities that have historically borne the brunt of pollution, climate change, and economic disinvestment. Hundreds of billions of dollars are specifically being directed to low-income and marginalized communities to support a just transition to a clean energy economy, creating new opportunities in areas that have long been left behind. 

Despite the clear and undeniable benefits of the IRA, the Trump administration is actively working to dismantle it. On his first day in office, Trump signed an executive order that illegally froze the distribution of IRA funds. Even after a federal judge ordered the restoration of these frozen payments in late January, Trump continued efforts to halt progress. Following suit, Republicans in Congress are eying cuts to the IRA in order to fund huge tax breaks for the wealthy.

Rolling back the IRA would be a disaster for Virginia. It would result in thousands of lost jobs and the elimination of millions of dollars in economic investments that are vital to communities across the state.

Congress must not turn its back on this progress. The IRA’s programs and tax credits are helping to transform our energy landscape and provide sustainable jobs, cleaner air, and a more resilient economy. Virginia needs this investment to continue its momentum in securing a more sustainable and prosperous future.