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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.

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Presentation on theme: "GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Economic Benefits of Solar and Renewable Energy PRESENTED BY BARRY BROOME, GPEC PRESIDENT AND."— Presentation transcript:

1 GREATER PHOENIX ECONOMIC COUNCIL Economic Benefits of Solar and Renewable Energy PRESENTED BY BARRY BROOME, GPEC PRESIDENT AND CEO

2 GREATER PHOENIX ECONOMIC COUNCIL Greater Phoenix Economic Council The 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 diversified and competitive.

3 GREATER PHOENIX ECONOMIC COUNCIL Recent Economic Trends in Arizona Dramatic Decline in Job Growth Source: U.S. Bureau of Labor Statistics #19 #49

4 GREATER PHOENIX ECONOMIC COUNCIL Single Industry Model is Not Sustainable Arizona 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)

5 GREATER PHOENIX ECONOMIC COUNCIL Solar a Fast-Growth Industry Global Solar Investment Trends Total investment in solar energy reached $12B in 2007, from $66M in Between , total investment increased by almost 20-fold. *Excluding government R&D and project finance investments Source: NEF / NREL / FACC

6 GREATER PHOENIX ECONOMIC COUNCIL Public offerings of solar companies grew rapidly ( ), with 45, 64 and 88 offerings, sequentially. $1.1B was raised (Q1-08) in 17 completed public-equity offerings. Solar a Fast-Growth Industry Global Solar Investment Trends Source: NEF / NREL / FACC

7 GREATER PHOENIX ECONOMIC COUNCIL Source: Navigant Consulting U.S. solar-supported employment will add 276,000 jobs. ( ) 1 in 4 U.S. workers in renewable energy / energy efficiency industries by (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. ( ) 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 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

8 GREATER PHOENIX ECONOMIC COUNCIL Solana 85 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 Solar Arizona Strategically Positioned for Full Economic Upside

9 GREATER PHOENIX ECONOMIC COUNCIL GPEC’s Solar Pipeline Current Solar Projects Number of Projects Number of Jobs Capital Investment ($Mil) Average Annual Wage Average Facility Size (SF) 296,532$8,444$46,670479,059 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

10 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? Sample Project Comparisons PV MANUFACTURER 400 jobs $100M investment 200,000 SF 20 acres THIN-FILM MANUFACTURER 700 jobs $145M investment 400,000 SF 40 acres GLASS MANUFACTURER 150 jobs $75M investment 150,000 SF 15 acres SOLAR HQ 50 jobs $17.7M investment 30,000 SF 3 acres ELECTRICAL GENERATION 140 jobs $1B investment 50,000 SF 1,800 acres Based on actual projects from GPEC pipeline except for headquarters, which is a composite of past headquarter projects.

11 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? PV Manufacturer PV MANUFACTURER 400 jobs $100M investment 200,000 SF 20 acres BENEFIT 400 direct jobs 1,208 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

12 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? Thin-Film Manufacturer THIN-FILM MANUFACTURER 700 jobs $145M investment 400,000 SF 40 acres BENEFIT 700 direct jobs 1,552 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

13 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? Glass Manufacturer GLASS MANUFACTURER 150 jobs $75M investment 150,000 SF 15 acres BENEFIT 150 direct jobs 283 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.

14 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? Solar Headquarters SOLAR HQ 50 jobs $17.5M investment 30,000 SF BENEFIT 50 direct jobs 100 total jobs $6.5M revenues*$136M output* BENEFIT UNDER PROPOSED LEGISLATION 10% tax credit or $1.75M *Over 10 years

15 GREATER PHOENIX ECONOMIC COUNCIL What are the Economic Benefits? Electrical Generation ELECTRICAL GENERATION 140 jobs $1B investment 50,000 SF 1,800 acres BENEFIT 140 direct jobs 196 total jobs $57.6M revenues*$318M output* BENEFIT UNDER PROPOSED LEGISLATION GPEC’s proposed program would not incentivize generation projects. *Over 10 years

16 GREATER PHOENIX ECONOMIC COUNCIL Final Thought Renewable Energy + Economic Development 1,800 ACRES 1 GENERATION PLANT 45 THIN-FILM MANUFACTURERS 90 PV MANUFACTURERS 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

17 GREATER PHOENIX ECONOMIC COUNCIL Questions Thank You for Your Time! Barry Broome President and CEO Greater Phoenix Economic Council


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