Electric Vehicle Sales Boom from Inflation Reduction Act, But Renewables Growth Falls Short of Climate Goals

Electric vehicle sales have boomed as expected after the passing of the Inflation Reduction Act, with 9.2% of new car sales being electric in 2023. However, growth may slow as early adopters have bought EVs and barriers like high prices and lack of charging remain.

Renewable energy growth fell short of levels needed to meet climate goals, even though the U.S. added record amounts of renewables and batteries in 2022. More clean energy is still needed.

Supply chain problems, difficulties getting permits, and local opposition have slowed down growth of renewable electricity sources like wind and solar under the IRA.

The IRA is still expected to help cut U.S. emissions by 40% below 2005 levels by 2030 through its tax credits and spending on clean energy tech.

The IRA is meeting expectations for EV adoption but falling short so far on expanding renewable electricity generation as quickly as analysts had hoped after the law's passing.