Making the Case for the Next President and Congress to Increase Dedicated Funding for Clean Energy Incubators Across the U.S.

The nation’s network of clean energy incubators–like LACI and dozens of other organizations across the country–provides the crucial early support founders need to effectively develop, deploy, and scale their cleantech solutions. Incubators are key to helping founders commercialize and scale their technologies to help solve the climate crisis while growing the economy and creating green jobs.

Thanks to the Biden-Harris Administration and Congressional action through the Inflation Reduction Act, Bipartisan Infrastructure Law, and other measures, we have seen historic federal investment in climate action. The result has included more than 60,000 infrastructure projects, spurring more than $900 billion in private sector investments, and doubled investments in construction of new manufacturing facilities, including for clean energy and EVs. 

And as we saw first hand when Vice President Harris visited and spoke at the LACI campus in 2023, she cited the need to invest in our clean energy future and entrepreneurs, including those most underrepresented. We know great results will follow, including scaling cleantech solutions needed for meeting the climate crisis, removing barriers to accessing capital for Black, brown and female founders while helping increase opportunities for generational wealth, and creating green jobs.

Through the National Coalition of Clean Energy Incubators (NCCEI), composed of the nation’s leading incubators, organizations are working together to promote robust growth of regional cleantech innovation ecosystems across the nation. As a result, early-stage startups receive comprehensive support that ranges from product development assistance to mentorship to funding and financing programs (including programs like LACI’s Cleantech Debt Fund that does not require personal collateral or credit scores).

Yet despite the crucial role of incubators in regional economic development, the most federal funding appropriated and dedicated to clean energy incubators nationally has been just $5 million. Last year even with bipartisan support, the amount was $2.5 million. We firmly believe the next President and Congress has an opportunity to build on the success of these highly impactful programs through increased and dedicated funding.

This is not just about taking action to tackle the climate crisis or creating green jobs, it is also about global economic competitiveness. Presently, China accounts for one-third of clean energy investments worldwide, dominating global cleantech supply chains at a rate far outpacing the U.S. If the U.S. intends to grow our economy through domestic clean technology solutions (and it should, for both economic and environmental reasons), then we must increase investments in the early stage innovation that clean energy incubators make possible for founders across our country.

It is clear that in order to promote American competitiveness in the growing cleantech market, the next President and Congress must pursue bold action that capitalizes on the opportunity for the U.S. to lead the world in cleantech. That is why LACI is calling for: 

• $50 million to be appropriated and dedicated annually for clean energy incubators to help startup founders scale their solutions;
• $50 million for piloting cleantech startup solutions with cities and other key markets and potential customers; and
• Additional resources including for debt funding dedicated to cleantech entrepreneurs, and green workforce development. 

The next President can also pursue key executive actions to align federal agencies around supporting clean energy startups, incubators, and pilot projects through existing programs and future solicitations. 

The bipartisan CHIPS and Science Act demonstrated the kind of support we need for clean energy incubators. CHIPS authorized increased, dedicated funding annually for clean energy incubators. 

That is why we urge the next President to request that Congress provide increased funding for clean energy incubators, and that the next Congress then appropriate the additional funding to invest in incubators to uplift cleantech solutions from early stage startups led by entrepreneurs from across our nation. 

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