Renewable technology is transforming the nation’s energy infrastructure and creating an entirely new source of jobs and economic opportunity. However, as in other industries, not all businesses benefit the same.

A study released in December by the American Council on Renewable Energy (ACORE) and BW Research Partnership cites the importance of opening up economic opportunities within the renewable sector to minority and women owned business enterprises (MWBE), and it assesses the current prognosis for doing so.

“Opportunities to Diversity the U.S. Renewable Energy Manufacturing Supply Chain,” published in December 2022, observes that the renewable energy and battery storage industries have grown to contribute more than 21% of the nation’s electricity generation and employ over 600,000 Americans. However, much of the manufacturing and supply chain activity is sourced overseas.

The study offers a realistic assessment of the challenges facing MWBEs as the nation takes steps to bring more of that economic activity back home to the United States. For example, of the 658 manufacturers currently supporting the utility-scale wind, solar and battery storage sectors, only 12 can be classified as MWBEs. Furthermore, the study notes that developers in the industry tend to favor relationships with existing providers as a way to mitigate risk. This can work against MWBEs striving to earn a position in the domestic supply chain.

The conclusions are not all bad. The report notes that as the federal government and states take steps to source more economic activity relating to renewables domestically, government is also implementing policies that increase access to this economic growth to historically underserved communities.

Examples cited in the report include the Biden administration’s Justice40 initiative, which directs 40% of the overall benefits of certain climate and clean energy-related federal investments to flow to disadvantaged communities.

According to the report, private sector initiatives, such as such as the American Council on Renewable Energy’s Accelerate Membership Program, have also been launched to support MWBE success in the renewable sector.