The accelerating expansion of North Carolina’s clean energy sector represents one of the state’s most significant economic transformations in decades. Recent federal tax incentives, particularly those embedded in the Inflation Reduction Act, have catalyzed unprecedented growth across solar, wind, and electric vehicle manufacturing throughout the state.
According to data released last week by the nonpartisan business group E2 (Environmental Entrepreneurs), North Carolina added nearly 8,500 clean energy jobs in 2023 alone, bringing the state’s total to approximately 113,000 positions in this rapidly expanding sector. This 8.1% growth rate significantly outpaced the national average of 3.9%.
“What we’re witnessing isn’t just an environmental shift—it’s a fundamental economic realignment,” explains Dr. Michael Harrison, economics professor at UNC Chapel Hill. “These aren’t just short-term construction jobs. Many positions in clean energy manufacturing, maintenance, and distribution offer living wages and long-term career paths in communities that desperately need economic revitalization.”
The geographic distribution of these jobs tells an important story. While urban centers like Charlotte and Raleigh-Durham have captured significant investment, rural counties across eastern North Carolina have emerged as unexpected beneficiaries. Counties like Robeson, Columbus, and Bladen—historically dependent on tobacco, textiles, and agriculture—are now hosting solar installations that generate both electricity and employment.
Brunswick County exemplifies this trend. Once heavily reliant on traditional manufacturing, it now hosts three major solar installations that collectively employ over 200 permanent workers. The county’s unemployment rate has dropped from 7.3% to 5.1% over the past three years, with clean energy projects directly contributing to this decline.
The federal Production Tax Credit and Investment Tax Credit have proven particularly influential. These incentives reduce tax liability for companies developing renewable energy projects, effectively lowering capital costs by up to 30%. This has transformed marginal projects into financially viable opportunities, especially in rural areas with available land but limited industrial infrastructure.
“The economics are compelling,” says Jennifer Martinez, CEO of Carolina Clean Energy Partners. “The tax credits create a multiplicative effect. For every dollar in tax incentives, we’re seeing roughly four dollars in private investment flowing into these communities.”
Beyond tax incentives, North Carolina’s established manufacturing base provides a competitive advantage. The state’s tradition in precision manufacturing has enabled relatively seamless transitions for many workers. Former textile workers are now producing solar panels, while automotive suppliers have pivoted to electric vehicle components.
VinFast’s decision to build its first North American electric vehicle plant in Chatham County represents a watershed moment. The Vietnamese automaker’s $4 billion investment promises 7,500 jobs and was secured partly through federal incentives that reduce production costs. Toyota’s expansion of battery manufacturing in Randolph County further solidifies North Carolina’s position in the electric vehicle supply chain.
“What’s remarkable is how quickly this transformation is occurring,” notes William Chen, analyst at Bloomberg New Energy Finance. “Five years ago, the idea of North Carolina as a clean energy manufacturing hub seemed aspirational. Today, it’s reality.”
The Federal Reserve Bank of Richmond estimates that clean energy jobs in North Carolina pay 21% above the state’s median wage. This premium reflects both the technical skills required and growing demand for qualified workers. Community colleges across the state have responded by developing specialized training programs in solar installation, battery technology, and advanced manufacturing.
Critics, however, question the sustainability of this growth. State Senator James Thompson expressed concerns during a recent legislative session: “While we all welcome job creation, we must ask whether these positions would exist without substantial government subsidies. Are we building an economic house of cards?”
Industry analysts counter that clean energy economics have fundamentally changed. According to Lazard’s annual Levelized Cost of Energy Analysis, new solar and wind installations now produce electricity at a lower cost than continuing to operate many existing coal plants, even without subsidies. The tax credits accelerate deployment but aren’t the sole economic driver.
The International Energy Agency projects global clean energy investment will reach $1.7 trillion in 2024, exceeding fossil fuel investment for the fourth consecutive year. North Carolina’s growing clean energy ecosystem positions the state to capture an outsized share of this expanding market.
“The transition is happening regardless,” explains Dr. Harrison. “The question isn’t whether we’ll shift to cleaner energy sources, but who will build the infrastructure and capture the jobs. North Carolina is positioning itself at the forefront of this economic evolution.”
For communities across the state, particularly those that have weathered decades of manufacturing decline, the tangible benefits of this transition are already evident in employment statistics, tax base expansion, and renewed economic optimism.
