A surge in federal funding has fueled a clean-energy boom in Pennsylvania and across Appalachia, according to a new report.

Investments doubled in the region, from $7.7 billion in 2022 to almost $16 billion in 2023, with more growth expected.

Diana Polson, senior policy analyst at the Keystone Research Center, said the funding for clean-energy projects from the Inflation Reduction Act and Infrastructure Investment and Jobs Act is helping to revive Pennsylvania’s middle class, hit hard over decades by job losses in manufacturing and coal.

“In Pennsylvania, federal investments increased 12-fold between 2022 and 2024, which boosted private investment by three times as much,” she said. “Total investment in clean energy and manufacturing projects over this period was $10 billion in our state.”

Polson said federal clean-energy funds have also spurred economic growth in Kentucky, Ohio and West Virginia, benefiting both Republican and Democratic-led congressional districts. An additional $3.7 billion is expected for Pennsylvania.

Polson said the report includes four case studies of job-creating manufacturing and energy projects due to federal investments. The company Eos Energy in Turtle Creek – the 12th Congressional District represented by Democrat Summer Lee – has received funding to help increase clean-energy jobs.

“And they received a $303.5 million loan guarantee by the Department of Energy to expand its battery manufacturing facility,” Polson said. “And with this expansion, the company expects to create up to 1,000 temporary and permanent jobs, including a variety of apprenticeship opportunities.”

Polson warned that repealing the Inflation Reduction Act’s tax credits would harm energy security and create uncertainty, both for businesses and workers. She said this uncertainty, along with unstable federal funding, makes it harder to plan ahead and hinders long-term progress.

“We really support these tax credits and other measures in the Inflation Reduction Act and other climate infrastructure laws to re-shore manufacturing and create good, family-sustaining jobs,” she said.

Polson said rural areas have seen an incredible amount of investment. Pennsylvania’s 13th District, which overlaps the Southern Alleghenies, saw $754 million spent on multiple solar and wind projects.