FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing

Landmark Actions Include Using the Defense Production Act to Cut Energy Costs, Reinforce the Power Grid, and Support Good-Paying Jobs

Modern clean energy technologies have become essential tools for lowering household energy bills, stabilizing the power grid, and responding to the accelerating climate crisis. From the beginning of his term, President Biden has focused federal policy and investment on scaling up these technologies. Under his clean energy and climate agenda, the United States saw the largest-ever annual deployment of solar, wind, and battery systems last year, turning the country into a major destination for clean energy manufacturing investment.

Since President Biden took office, private companies have announced more than $100 billion in new investments to produce electric vehicles and batteries in the United States. The Administration has also backed historic levels of funding for clean hydrogen, advanced nuclear technologies, and other next-generation energy solutions. At the same time, firms are committing billions of dollars to build a new domestic offshore wind industry.

The United States is now on a path to triple its solar manufacturing capacity by 2024. Announced expansions since President Biden took office will add roughly 15 gigawatts of new domestic capacity on top of an existing base of 7.5 gigawatts. By the end of his first term, total capacity is projected to reach about 22.5 gigawatts — enough to allow more than 3.3 million homes each year to transition to clean solar power.

As the President continues to push Congress to approve additional clean energy tax incentives and investments, he is also acting through executive authority to accelerate progress and smooth the transition to an American-made clean energy economy. Today, President Biden is taking steps to:

• Authorize use of the Defense Production Act (DPA) to speed up domestic manufacturing of clean energy technologies, including components for solar panels;
  
  
• Leverage the full strength of federal purchasing power to help expand domestic solar manufacturing capacity by launching new master supply agreements that incorporate “super preference” status for Made-in-America products; and
  
  
• Establish a 24-month transition period as domestic manufacturing scales up, ensuring a stable supply of key solar components needed for clean energy projects and a modern electric grid, while upholding U.S. trade laws and enforcement processes.
  
  

Taken together, these measures are designed to stimulate U.S. manufacturing, support energy infrastructure projects, and create high-quality jobs. At the same time, they will help lower energy costs for families, bolster grid resilience, and advance efforts to address climate change and environmental injustice. A stronger clean energy manufacturing base also improves the United States’ ability to support allies, particularly in the context of Russia’s war in Ukraine.

The stakes are significant. President Biden continues to call on Congress to enact clean energy tax cuts and expanded investments that will further strengthen domestic clean energy production and deployment. Failure to act would limit access to lower-cost clean energy options, increase vulnerabilities in the power system, and slow or halt construction of clean energy projects that are essential to meeting climate goals. In parallel, the President will continue using executive tools to advance an American-led clean energy future.

Using the Defense Production Act to Advance Clean Energy

President Biden is authorizing the use of the Defense Production Act to accelerate domestic manufacturing of key clean energy technologies, providing additional legal and financial tools to respond to current energy and climate challenges. Under this authority, the Department of Energy will move quickly to expand U.S. production of five priority technology categories:

• Solar components, including photovoltaic modules and related parts;
  
  
• High-performance building insulation to improve efficiency in homes and commercial buildings;
  
  
• Heat pumps, which provide highly efficient heating and cooling;
  
  
• Equipment for producing and using clean electricity–based fuels, including electrolyzers, fuel cells, and associated platinum group metals; and
  
  
• Critical grid infrastructure, such as transformers and related components.
  
  

In implementing the DPA, the Biden-Harris Administration will promote high labor standards. This includes encouraging the use of project labor agreements and community benefits agreements that provide wages at or above prevailing rates and prioritize local hiring. The Administration will also prioritize projects that advance environmental justice by directing clean energy investments toward low-income communities and neighborhoods historically exposed to high levels of pollution.

Following this announcement, the White House and the Department of Energy will bring together industry representatives, labor organizations, environmental justice advocates, and other stakeholders. These discussions will focus on how to best apply DPA authorities to strengthen domestic clean energy manufacturing and maximize the benefits for workers and communities.

Expanding Made-in-America Clean Energy Through Federal Purchasing

President Biden is also deploying federal procurement as a strategic tool to support domestic clean energy industries, especially solar manufacturing. He has directed the development of two key mechanisms to accelerate the adoption of U.S.-made clean energy systems:

• Master Supply Agreements for domestically manufactured solar systems, designed to streamline and speed up the process by which U.S. clean electricity providers sell their products to the federal government; and
  
  
• “Super Preferences” for domestic content in federal purchases of solar systems, including U.S.-made photovoltaic components, in line with the Buy American Act.
  
  

These procurement initiatives are expected to drive near-term demand for up to 1 gigawatt of solar modules produced in the United States, and as much as 10 gigawatts over the next decade from federal purchasing alone. To broaden their impact, the Administration will work with state and local governments and municipal utilities to participate in similar arrangements. This could expand the total market effect to more than 100 gigawatts over the next ten years. Such predictable demand can serve as a strong anchor for rebuilding and expanding the domestic solar manufacturing sector.

Supporting Grid-Strengthening Clean Energy Construction in the United States

Investor confidence in the Administration’s clean energy agenda has helped put the United States on track to triple its solar manufacturing capacity by 2024. As noted, announced projects will increase current capacity from 7.5 gigawatts to approximately 22.5 gigawatts by the end of the President’s first term, potentially enabling millions of households each year to adopt solar power. To fully realize these benefits, however, short-term access to solar modules and components is necessary to keep construction projects moving forward.

Grid operators across the country are counting on planned solar projects to come online to meet rising electricity demand and maintain reliability. These projects are also essential to achieving the President’s climate targets. To avoid disruptions and maintain momentum, President Biden is acting to create a 24-month transition period that allows certain solar imports to continue while domestic production scales up.

Specifically, the President is:

• Temporarily facilitating imports of solar modules and cells from Cambodia, Malaysia, Thailand, and Vietnam by allowing them to enter the United States free from certain duties for 24 months. This provides deployers with access to sufficient supplies to meet generation needs during the ramp-up of domestic manufacturing; and
  
  
• Reaffirming his support for independent trade enforcement, emphasizing that ongoing investigations at the Department of Commerce will continue under standard procedures, which play a vital role in ensuring a fair and resilient economy.
  
  

Additional Measures to Lower Costs, Expand Good-Paying Jobs, and Advance Environmental Justice

The steps announced today build on a broad set of Administration initiatives already under way to expand domestic clean energy innovation and manufacturing, while helping families manage energy costs. These efforts include:

1. Permitting More Clean Energy on Public Lands
Under the Biden-Harris Permitting Action Plan, five federal agencies are collaborating to speed up reviews of clean energy projects on public lands managed by the Department of the Interior. The goal is to permit at least 25 gigawatts of clean energy by 2025, enough to power about five million homes. Clean energy permitting activity has already risen by 35 percent, with significant progress on major solar projects and leases. The government has also established five new Renewable Energy Coordination Offices and cut rents and fees for solar and wind projects on public lands by more than half.

2. Expanding Community-Based Clean Energy in Urban and Rural Areas
The Administration is working with cities and rural communities to reduce administrative barriers to rooftop solar and other distributed energy resources. Seventeen local communities are currently using the SolarAPP+ tool to provide same-day approvals for residential solar permits, and roughly 400 more communities have expressed interest. The National Climate Task Force has launched initiatives to accelerate deployment of distributed energy technologies, particularly in underserved areas. The U.S. Department of Agriculture has made record investments in rural renewable energy projects, while the Department of Energy and the Department of Health and Human Services are piloting a digital platform that links Low Income Home Energy Assistance Program (LIHEAP) participants with community solar subscriptions. The Department of Housing and Urban Development is also working with localities to ensure that residents of affordable housing can benefit from community solar without rent hikes or utility allowance adjustments.

3. Building a Diverse Solar Workforce with Quality Jobs
Solar jobs are among the fastest-growing occupations in the United States and often require only a high school diploma or GED. The Administration is focused on creating pathways to stable, well-paid careers, including the option to join a union. The Economic Development Administration has awarded funding for solar workforce training in tribal communities and regions affected by coal plant closures. The Department of Energy has issued a Request for Information and held multiple workshops with industry, labor organizations, and training providers to understand workforce needs. DOE will continue to support equitable, worker-centered training programs, work-based learning, and wraparound services such as career counseling, mentorship, and job readiness support.

4. Developing Clean Energy Manufacturing for Export and Supporting Allied Nations
Through the Export-Import Bank’s “Make More in America” initiative, the United States is prioritizing financing for projects that expand domestic clean energy manufacturing capacity. The U.S. International Development Finance Corporation is also backing efforts to build robust clean energy manufacturing supply chains in allied countries. These actions help reduce worldwide dependence on any single country for critical clean energy technologies.

5. Investing in Clean Energy Resilience in Puerto Rico
The Biden-Harris Administration is working closely with the Commonwealth of Puerto Rico to advance a portfolio of solar energy projects designed to help the island reach its goal of 100 percent renewable electricity. These initiatives will improve the resilience of the power system, expand access to more affordable and reliable energy, and contribute to cleaner air for residents.

Through these combined actions, President Biden is using executive authority, federal purchasing, and strategic investments to strengthen domestic clean energy manufacturing, support American workers, and accelerate the transition to a more resilient, just, and low-carbon energy system.

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