By Mark McNees
When Berkshire Hathaway’s energy subsidiary committed $3.9 billion to renewable projects in Iowa, it wasn’t making a climate statement — it was making a financial calculation. Across Republican-led states from Texas to North Dakota, similar calculations are driving the largest energy infrastructure transformation in a generation, with implications far beyond partisan politics.
The geographic distribution of America’s renewable energy boom defies conventional political assumptions. Texas produces more renewable energy than any other state, generating over 150,000 GWh annually — while simultaneously leading in oil production. Iowa derives 66% of its electricity from wind, the highest percentage nationally. Six of the 10 leading renewable energy states voted Republican in 2024, suggesting that resource availability and economic fundamentals, not ideology, drive deployment decisions.
The economics are increasingly compelling. Unsubsidized utility-scale solar now achieves levelized costs of $38-78 per megawatt-hour versus $48-109 for combined-cycle natural gas. These figures exclude both subsidies and carbon pricing, representing pure market competition. Battery storage costs declined markedly in 2025, improving the economics of renewable-plus-storage systems that increasingly compete with traditional baseload generation.
Predictable revenue streams
The employment multiplier effects merit attention from policymakers focused on American manufacturing competitiveness. Clean energy sectors employ over 3.5 million Americans with 2.8% annual growth, outpacing overall employment growth by more than three times.
Texas alone accounts for over 410,000 clean energy positions, with multiple solar manufacturing facilities expanding in Houston. These positions — ranging from manufacturing to installation to grid operations — offer median wages competitive with traditional energy sectors while requiring similar skillsets.
For rural landowners, renewable energy provides portfolio diversification against agricultural volatility. Wind and solar installations generate approximately $3.5 billion annually in lease payments and local taxes, with individual wind turbines yielding $8,000 to $33,000 annually over typical 20-30 year contracts. These predictable revenue streams, indexed to inflation, offer superior risk-adjusted returns compared to commodity price exposure alone.
Grid resilience
Recent extreme weather events have demonstrated the infrastructure resilience value of distributed generation paired with storage. Babcock Ranch in Southwest Florida maintained continuous power through Hurricane Ian’s Category 4 winds via its integrated solar-plus-storage microgrid, while conventional grid infrastructure failed across surrounding areas. Following Winter Storm Uri’s near-catastrophic grid failure, Texas added 8 GW of solar capacity and significant battery storage. During 2025’s extreme heat events, these resources provided critical grid stability, demonstrating value beyond simple energy arbitrage.
The Department of Defense’s adoption of renewable microgrids at critical installations underscores reliability improvements. Military facilities operate renewable-powered microgrids not for environmental reasons but for energy security and operational continuity — validating the technology’s reliability for civilian applications.
Political considerations
Republican elected officials increasingly recognize the economic imperative. The Conservative Climate Caucus has expanded to about 66 House members, focusing on market-based energy innovation.
Iowa Sen. Chuck Grassley, self-described “father of Iowa wind,” has consistently championed production tax credits that catalyzed his state’s energy transformation. Wyoming Gov. Mark Gordon pursues energy diversification that includes substantial wind development alongside traditional resources.
Polling data reveals pragmatic conservative attitudes when economics takes precedence over ideology. Sixty-one percent of Republicans support solar development, with 48% backing wind power when framed around economic benefits. Among Republicans aged 18-29, two-thirds prioritize renewable development, viewing it through the lens of technological innovation rather than environmental activism.
The geographic concentration of benefits in Republican districts creates powerful economic constituencies. Nearly 80% of clean energy investments from recent federal programs flow to Republican-represented districts, generating local employment and tax revenue that transcend partisan considerations.
Strategic implications
This transformation doesn’t necessitate abandoning fossil fuels precipitously. Texas’s simultaneous leadership in renewable energy and hydrocarbon production demonstrates these sectors can coexist during the transition period. An “all-of-the-above” strategy incorporating natural gas, nuclear and renewables provides optionality while markets determine optimal resource allocation.
However, ignoring renewable energy’s economic trajectory risks ceding competitive advantage. China currently dominates solar manufacturing and battery production, while European companies lead in offshore wind technology. American competitive advantages — abundant land, strong capital markets and entrepreneurial culture — position the nation to capture significant value in the estimated $110 trillion global energy transition through 2050.
For institutional investors, the stranded asset risk in traditional energy infrastructure grows as renewable costs decline and corporate purchasers increasingly demand clean power through long-term agreements. Fortune 500 companies have contracted nearly 70 GW of renewable capacity through power purchase agreements, driving utility-scale development independent of policy support.
The path forward
The global energy transition represents one of history’s largest capital reallocation opportunities. Market forces, not political mandates, increasingly drive this transformation. States with favorable resources and business climates will capture disproportionate investment regardless of partisan affiliation.
Conservative principles — property rights, free markets, energy independence — align naturally with renewable energy development when evaluated through economic rather than ideological lenses. The question isn’t whether America will participate in this transition but whether it will lead or follow. For investors, policymakers and business leaders, the economy has already provided the answer. The only remaining question is execution.
Dr. Mark McNees is the director of Social and Sustainable Enterprises at Florida State University’s Jim Moran College of Entrepreneurship and author of ”The CEO’s Mindset Reset.” Banner photo: An aging oil pumpjack surrounded by wind turbines in West Texas (iStock image).
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