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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 COUNCIL 602.256.7700 WWW.GPEC.ORG
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.
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
Recent Economic Trends in ArizonaDramatic Decline in Job Growth
Source: U.S. Bureau of Labor Statistics
#19
#49
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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)
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
• 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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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 $586M investment;
Supplier to APS & SRP
PV distribution to housing
Net-metering;APS & SRP;distributive technology
Opportunity to Capture SolarArizona Strategically Positioned for Full Economic Upside
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
GPEC’s Solar PipelineCurrent Solar Projects
Number of Projects
Number of Jobs
Capital Investment ($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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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.
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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*
BENEFIT UNDER PROPOSED
LEGISLATION
10% of capital investment
or $14.5M in tax credit
77% property tax reduction through
reclassification
*Over 10 years
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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*
BENEFIT UNDER PROPOSED
LEGISLATION
Reduced tax credit of $5M**
77% property tax reduction through
reclassification
*Over 10 years. **This project does not meet jobs-to-capital investment criteria.
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
What are the Economic Benefits?Solar Headquarters
SOLAR HQ
50 jobs
$17.5M investment
30,000 SF
BENEFIT
50 direct jobs100 total jobs
$6.5M revenues*
$136M output*
BENEFIT UNDER PROPOSED
LEGISLATION
10% tax credit or$1.75M
*Over 10 years
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
What are the Economic Benefits?Electrical Generation
ELECTRICAL GENERATION
140 jobs
$1B investment
50,000 SF 1,800 acres
BENEFIT
140 direct jobs196 total jobs
$57.6M revenues*
$318M output*
BENEFIT UNDER PROPOSED
LEGISLATION
GPEC’s proposed program would not
incentivize generation projects.
*Over 10 years
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
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
GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG
QuestionsThank You for Your Time!
Barry BroomePresident and CEOGreater Phoenix Economic [email protected]