greater phoenix economic council 602.256.7700 economic benefits of solar and renewable energy...

GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG

Economic Benefits of Solar and Renewable Energy

PRESENTED BY BARRY BROOME, GPEC PRESIDENT AND CEO


Greater Phoenix Economic CouncilThe Region’s Economic Development Organization

• A true regional model where public and private members collaborate to promote Greater Phoenix as a great place to grow business.

• Supported by Maricopa County, 18 cities and towns, and more than 140 private-sector businesses.

• The catalyst that strengthens the region’s economic base, ensuring it is both diversifiedand competitive.


Recent Economic Trends in ArizonaDramatic Decline in Job Growth

Source: U.S. Bureau of Labor Statistics

#19

#49


Single Industry Model is Not SustainableArizona vs. Michigan: Jobs Lost by Industry Nov 2007-Nov 2008

Arizona’s Dependence on Construction*Construction Job Loss: 37%

Michigan’s Dependence on Auto Industry*Manufacturing Job Loss: 31%

* Motor vehicle manufacturing represents about 6.2% of all private industry employment in Michigan. (2007)

* Construction represents about 8.6% of all private industry employment in Arizona. (2007)


Solar a Fast-Growth IndustryGlobal Solar Investment Trends

• Total investment in solar energy reached $12B in 2007, from $66M in 2001.

• Between 2004-2007, total investment increased by almost 20-fold.

*Excluding government R&D and project finance investments

Source: NEF / NREL / FACC


• Public offerings of solar companies grew rapidly (2005-2007), with 45, 64 and 88 offerings, sequentially.

• $1.1B was raised (Q1-08) in 17 completed public-equity offerings.

Solar a Fast-Growth IndustryGlobal Solar Investment Trends

Source: NEF / NREL / FACC


Source: Navigant Consulting

• U.S. solar-supported employment will add 276,000 jobs. (2009-2016)

• 1 in 4 U.S. workers in renewable energy / energy efficiency industries by 2030. (includes engineering, manufacturing, construction, accounting, management)

GROWTH OF A GREEN-COLLAR

WORKFORCE

• U.S. solar installations will rise.

• Total U.S. solar-related investments will increase by $232B. (2009-2016)

EXTENSION OF 8-YEAR TAX CREDIT

• Invest $150B over next 10 years to catalyze private-sector efforts.

• Ensure 10% of nation’s electricity from renewable sources by 2012 and 25% by 2025.

PRESIDENT OBAMA’S ENERGY PLAN GOAL

Create 5 million new green jobs

Solar and Renewable Energy are Important for the U.S.National Factors Driving Industry Growth


Solana85 jobs;

$1B investment

Producing power

Consuming technology

STRATEGICALLY POSITIONED

MAKING SOLAR REAL

AZ missing economic

opportunities for high-wage

jobs

Schott: Lost to New Mexico

1,500 jobs and $586M investment;

Supplier to APS & SRP

PV distribution to housing

Net-metering;APS & SRP;distributive technology

Opportunity to Capture SolarArizona Strategically Positioned for Full Economic Upside


GPEC’s Solar PipelineCurrent Solar Projects

Number of Projects

Number of Jobs

Capital Investment ($Mil)

Average Annual Wage

Average Facility Size

(SF)

29 6,532 $8,444 $46,670 479,059

• Includes PV and thin-film manufacturing, utility scale power generation, distributed generation, and supplier projects.

• 11 projects in the pipeline, worth $5.2 billion in capital investment and 5,260 jobs, are eligible for the proposed tax credit program.

Source: GPEC Jan 15, 2009


What are the Economic Benefits?Sample Project Comparisons

PV MANUFACTUR

ER

400 jobs

$100M investment

200,000 SF20 acres

THIN-FILM MANUFACTUR

ER

700 jobs

$145M investment

400,000 SF40 acres

GLASS MANUFACTUR

ER

150 jobs

$75M investment

150,000 SF15 acres

SOLAR HQ

50 jobs

$17.7M investment

30,000 SF3 acres

ELECTRICAL GENERATION

140 jobs

$1B investment

50,000 SF1,800 acres

Based on actual projects from GPEC pipeline except for headquarters, which is a composite of past headquarter projects.


What are the Economic Benefits?PV Manufacturer

PV MANUFACTURER

400 jobs

$100M investment

200,000 SF20 acres

BENEFIT

400 direct jobs1,208 total jobs

$78.6M revenues*

$2.5B output*

BENEFIT UNDER PROPOSED

LEGISLATION

10% of capital investment

or $10M in tax credit

77% property tax reduction through

reclassification

*Over 10 years


What are the Economic Benefits?Thin-Film Manufacturer

THIN-FILM MANUFACTURER

700 jobs

$145M investment

400,000 SF40 acres

BENEFIT

700 direct jobs1,552 total jobs

$104.1M revenues*

$2.7B output*


LEGISLATION

10% of capital investment

or $14.5M in tax credit


reclassification

*Over 10 years


What are the Economic Benefits?Glass Manufacturer

GLASSMANUFACTURER

150 jobs

$75M investment

150,000 SF15 acres

BENEFIT

150 direct jobs283 total jobs

$18.2M revenues*

$409M output*


LEGISLATION

Reduced tax credit of $5M**


reclassification

*Over 10 years. **This project does not meet jobs-to-capital investment criteria.


What are the Economic Benefits?Solar Headquarters

SOLAR HQ

50 jobs

$17.5M investment

30,000 SF

BENEFIT


$6.5M revenues*

$136M output*


LEGISLATION

10% tax credit or$1.75M

*Over 10 years


What are the Economic Benefits?Electrical Generation

ELECTRICAL GENERATION

140 jobs

$1B investment

50,000 SF 1,800 acres

BENEFIT


$57.6M revenues*

$318M output*


LEGISLATION

GPEC’s proposed program would not

incentivize generation projects.

*Over 10 years


Final ThoughtRenewable Energy + Economic Development

1,800

ACRES

1 GENERATION

PLANT

45

THIN-FILM

MANUFACTURERS

90

PV MANUFACT

URERS

ECONOMIC

BENEFIT

31,500-36,000 Direct Jobs

$6.5-$9B Cap Investment$4.7-$7.1B Revenues*

*Over 10 years

For the same amount of land…

or


QuestionsThank You for Your Time!

Barry BroomePresident and CEOGreater Phoenix Economic [email protected]

greater phoenix economic council 602.256.7700 economic benefits of solar and renewable energy...

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