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People in Red States Stand to Lose the Most With IRA Repeal

A man installing insulation and "What the IRA Means for Red States".
UpdatedMarch 27, 2025
AuthorNeil Chatterjee portrait.Neil ChatterjeeChief Governmental Affairs OfficerEditorHeadshot of Andrew Blok.Andrew BlokWriter and Editor
In this article
01.
IRA Investment Has Largely Benefited Republican Regions
02.
The Inflation Reduction Act Lowers Bills

When the Inflation Reduction Act was passed in 2022, some people called it the most significant climate bill of all time. That reputation might have made it a potential target in the upcoming budget reconciliation process, but its actual effect has been to drive investment and energy savings, especially in Republican regions.

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IRA Investment Has Largely Benefited Republican Regions

Since the IRA’s passage, $139 billion in investment have been announced in 42 states, according to advocacy group E2. The vast majority of that money has been announced for projects in districts represented by Republicans ($106.85 billion) and states that voted for President Trump in the 2024 election ($122.16 billion). Projects announced in Republican districts are expected to create 81,747 jobs.

The largest announced investment, according to E2, is $8 billion for a Toyota battery manufacturing plant in Liberty, NC, represented by Richard Hudson. According to Toyota, the plant is under construction and will employ 5,100 people. (Toyota also says its investment will reach $13.9 billion.)

In Georgia alone, billions of dollars in investment have been announced. For example, more than $3.5 billion in investment has been announced in Republican Representative Buddy Carter’s Georgia district. Another $296 million has been announced in Rep. Brian Jack’s district. Nineteen million has been announced in Rep. Rich McCormick’s district, $69 million in Rep. Andrew Clyde’s, and $72 million in Mike Collins’. Another $810 million in Rep. Rick Allens’ district and $406 million in Rep. Marjorie Taylor Greene’s.  A whopping $6.84 billion of investment has been announced in Rep. Barry Loudermilk’s district.

All told, the announced projects in Georgia would create nearly 16,000 jobs.

The Inflation Reduction Act Lowers Bills

The federal solar tax credit has helped millions of Americans install solar panels (about 4.85 million as of May 2024, or 7% of all homes), generating energy bill savings that puts money back in their pockets. With stable policy, the benefits of rooftop solar could expand to 10 million homes total.

More than 24,500 people in states won by President Trump in 2024 have purchased solar panel systems, just from Palmetto. An additional 20,000 have gone solar with our third-party ownership product, LightReach. (LightReach customers saved $6.4 million in 2024.) The real savings these installations represent can spread to even more people with the stability provided by the Inflation Reduction Act.

This isn’t even taking into account other home technologies supported by the IRA. Heat pumps could lower energy costs for most Americans. Insulation, new doors, and energy efficient windows can reduce heating and cooling bills that represent American’s largest home energy expense.

New analysis found that repealing the Inflation Reduction Act would increase energy bills for Americans by $32 billion over the next decade, adding about $80 to the average Pennsylvania household’s annual energy costs, $150 in Florida, $180 in Georgia, and $370 in Texas. Another analysis found that the average American would see their bill increase $152 per year with an IRA repeal.

That’s thanks to the fact that renewable energy is the most affordable and fastest way to get electricity on to the grid. The vast majority of new additions to the grid in 2025 will come from solar and storage (81%). When you add wind into the mix, renewables will supply 93% of the new energy generation.

Taken together, it’s clear: Repealing the IRA would raise bills and remove the most effective solutions to high energy bills.

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About the AuthorNeil Chatterjee portrait.Neil ChatterjeeChief Governmental Affairs Officer

Neil is Palmetto's chief governmental affairs officer and former chairman of the Federal Energy Regulatory Commission.

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