According to IBISWorld, the Hawkeye state saw growth in its 2024 GDP, reaching $206.1 billion,an increase of 1.8% from 2023. This upward trend in Iowa’s economic growth is set to continue in the coming years following a series of positive actions, including clean energy investments.
The Common Sense Institute has reported that, due to state income tax cuts enacted in 2022, the state’s GDP could increase by $1.72 billion over the next decade. In addition, according to the institute, approximately 6,800 new jobs are due to be created in 2025. By 2026, the state is on track for a single flat individual income tax rate of 3.9%.
“Our commonsense policies are creating jobs and putting more money in the pockets of hard-working Iowans just as intended,” Iowa Gov. Kim Reynolds said in a press release.
Photo Courtesy Climate Central
In addition to these, clean energy is a contributing factor to the upcoming positive economic impacts. According to the Clean Investment Monitor (CIM) — a database from Rhodium Group and the Massachusetts Institute of Technology (MIT) — Iowa’s public and private clean energy investments totaled $15 billion from 2018 to June 2024.
The CIM found that $272 billion was invested nationwide in the “manufacture and deployment of clean energy, clean vehicles, building electrification and carbon management technology, through the third quarter in the past year.” Between the first quarter of 2018 and the second quarter of 2024, the Midwest received $149 million in investments, many of which cover several sectors of Iowa’s economy.
Energy and Industry Investments
Photo Courtesy Climate Central
Since 2018, Iowa has seen the second-highest level of investment in wind power at $9 billion, right behind Oklahoma. Climate Central reported that Iowa’s wind energy investments represent 61% of the public and private investment between 2018 and June 2024, and, according to the CIM, that has meant $109.9 million in the last four quarters.
Other energy sectors in Iowa have also received funding. Climate Central reported that between 2018 and June 2024, Iowa’s sustainable aviation fuel (SAF) investments represented 18% of the total financing, while solar received 8%. In just the last four quarters, the SAF sector accounted for $608.2 million, while solar power received $477.5 million in funding.
Manufacturing and Retail Investments
Like the energy sector, wind power blew into the manufacturing sphere during the last four quarters. According to the CIM, the industry received $131.9 million in funding, representing .1% of the state’s entire GDP.
In the last four quarters, investments rolled into the retail sector, representing .17% of the state’s GDP:
- The Heat pump sector received $78.7 million.
- The Distributed electricity and storage sector received $100.9 million.
- The Zero-emission vehicles (ZEVs) sector received $252.7 million.
For years, clean investments supporting an all-the-above energy approach have been growing and accelerating the clean energy transition around the country. With the continued economic growth benefits, Iowa is part of that transition — one clean energy project at a time.
