As initially reported by Canary Media, the United States is witnessing a historic surge in clean energy investments, setting new records in the process. Last year marked a high point for clean energy investment, and 2024 is off to an even stronger start.

Record-Breaking Investment in Q1 2024

In the first quarter of 2024, private investment in clean energy and electric vehicles soared to $71 billion, setting a new quarterly record for the country. According to a recent report by the Clean Investment Monitor, a joint project of the Rhodium Group and MIT’s Center for Energy and Environmental Policy Research, this figure represents an almost 40 percent increase compared to the first quarter of 2023.

Breakdown of Clean Energy Investment

The report categorizes clean energy investment into three main areas: manufacturing emissions-reducing technologies, deployment of clean energy and industrial decarbonization technologies, and retail sales of clean technology by individual households and businesses.

Retail Sales: The Largest Investment Segment

Retail sales accounted for the largest portion of the investment, with $31 billion in sales of zero-emissions vehicles, solar and storage systems, and heat pumps registered in Q1. This segment demonstrates the growing consumer demand for clean technology solutions.

Deployment of Clean Energy and Industrial Decarbonization

The deployment of clean energy and industrial decarbonization technologies was the second-largest segment, with $24 billion invested in Q1. This was primarily driven by utility-scale solar and storage deployments. Emerging technologies like hydrogen, carbon capture, and sustainable aviation fuels also contributed significantly, attracting $6.3 billion in investment—a 37 percent increase from the previous quarter and a fivefold increase compared to Q1 2023.

Manufacturing: Rapid Growth in Investment

While manufacturing is the smallest segment, with $17 billion in private investment in Q1, it has seen the steepest rise in recent quarters. The electric vehicle supply chain, including critical minerals, batteries, vehicle assembly, and charging equipment, dominated this sector, making up 85 percent of the $17 billion invested. Investment in battery manufacturing alone grew by 36 percent from the previous quarter to reach $11 billion.

Increasing Share of Total US Private Investment

Clean energy and EV investments now account for more than 5 percent of total U.S. private investment in structures, equipment, and durable consumer goods, up from 3.7 percent in the first quarter of last year, according to the Clean Investment Monitor.

The Need for Continued Growth

Despite these impressive figures, further growth is essential. A report by the Clean Investment Monitor released earlier this year indicates that while zero-emissions vehicle sales are on track to meet domestic climate goals, clean energy deployments are not. The report calls for average annual capacity additions of 70 to 126 gigawatts between 2025 and 2030—more than twice the amount of clean energy added last year. Achieving this will require private investment to continue breaking records in the coming quarters.