DES MOINES, Iowa — The renewable energy sector is catalyzing a significant economic transformation across rural communities in the Midwest. With expansive wind and solar projects, these regions are witnessing not only a surge in clean energy production but also a substantial boost in employment opportunities spanning construction, maintenance, and manufacturing.
According to the U.S. Department of Energy’s 2024 U.S. Energy & Employment Report (USEER), the energy sector employed 8.4 million individuals in 2023, accounting for over 5% of all U.S. jobs. Notably, renewable energy jobs grew at more than twice the rate of the overall U.S. employment growth, underscoring the sector’s rapid expansion.
In Iowa, a state leading the nation in wind energy production, the impact is particularly pronounced. Wind energy now constitutes over 62% of Iowa’s electricity generation, with more than 12,200 megawatts of installed capacity and over 6,000 wind turbines operational as of 2022. This growth has spurred significant employment, with the wind power industry supporting between 9,000 to 10,000 jobs in the state.
Similarly, Minnesota has emerged as a hub for clean energy employment. The state boasts over 59,000 clean energy jobs, with renewable energy being the fastest-growing sector, experiencing a 16.5% annual job growth—the highest in the Midwest. Wind and solar energy sectors alone employ over 6,500 Minnesotans, reflecting the state’s commitment to sustainable energy development.
The economic benefits extend beyond job creation. Local economies are experiencing increased tax revenues and infrastructure development associated with renewable energy installations. For instance, the village of Galena in rural Alaska transitioned to clean and sustainable energy practices by initiating the use of a biomass plant powered by harvested trees, displacing approximately 100,000 gallons of diesel annually. The community is also installing a 1.5-megawatt solar farm expected to provide 100% renewable energy on sunny days, with battery storage for surplus power—saving another 100,000 gallons of diesel each year. These initiatives not only bolster the village’s resilience against energy costs and outages but also provide vital educational and skill-building opportunities for younger generations.
Federal policies have played a pivotal role in accelerating this transition. The Inflation Reduction Act (IRA), enacted in 2022, allocated $500 billion to various initiatives, including climate change efforts. This legislation has spurred at least $86 billion in investments, leading to the creation of over 400,000 clean energy jobs across 48 states and Puerto Rico. Significant job growth is expected in the electric vehicle (EV), battery storage, and solar energy sectors, with EVs alone accounting for 185,700 jobs annually over five years.
Despite these advancements, challenges persist. The U.S. solar and storage industries, while experiencing rapid growth driven by tax incentives, face significant labor shortages. A report by Wood Mackenzie and the Solar Energy Industries Association highlights constraints on future growth due to the lack of labor, high voltage equipment constraints, and interconnection delays. Efforts are underway to address these shortages, including apprenticeship programs offering earn-while-you-learn models and diversity initiatives.
Community leaders emphasize the importance of continued investment in sustainable energy to ensure long-term economic resilience and environmental stewardship. As the renewable energy sector continues to expand, it offers a promising pathway for economic revitalization in rural communities, fostering job creation, infrastructure development, and sustainable growth.
