Passing Solar Jobs Legislation and Developing2,200 MW of New York Solar by 2022 Would Create:
Over $2 billion in direct, local economic activity from project development
An average of 1,700 individual jobs each year through 2022 (17,000 job-years)
2,300 individual jobs supported in 2022—peak construction year
High quality, local jobs related to project development and installation (direct jobs)
Cleaner air in New York by reducing levels of notorious air pollutants—28,000tons of Sulfur Dioxide, 14,200 tons of Nitrous Oxide and 51.6 tons of mercury
New York State has what it takes to be a solar powerhouse. Hundreds of solar companies already employingthousands of New Yorkers are eager to grow to meet increased solar demand throughout the state. With policies such as Governor Cuomo’s NY Sun Initiative, New York is headed in the right direction. However, inorder to become a national leader supporting thousands of more local jobs and attracting billions of dollars of investment, New York needs even stronger policies—policies that are long-term, create market certainty andsend a clear signal to the global solar industry that New York is open for business.Both the Senate and Assembly have long-term solar legislation before them in the form of the New York Solar Jobs Act. And more recently, Governor Cuomo has come to the table with a 10-year NY-Sun legislative proposal that includes the three key principles necessary to drive a robust solar industry in NY: certainty,longevity, and scale; all without impacting existing utility rates.The New York Solar Jobs Coalition strongly supports these long-term solar policies as they will unleashindustry potential and instill confidence for investing in New York; investment that will create and sustainthousands of quality jobs and generate robust economic activity. Although ultimately dependent on programdesign, we estimate that funding levels included in the Governor’s proposed NY-Sun legislation would resultin 2,200 MW of new, clean solar generation by 2022—enough solar capacity to meet the electricity needs of over 400,000 New York residences.The following memo details the direct economic and environmental benefits that will result from the sustainedand orderly deployment of 2,200 MW of solar throughout New York State.
The development of solar energy creates more jobs per Megawatt (MW) than anyother energy generating technology.
i
To analyze the job creation and economic benefits of a long-term and scalable solar program, this report usedthe Jobs and Economic Development Impact (JEDI) model from the Department of Energy’s NationalRenewable Energy Laboratory (NREL). Designed to trace state specific supply and expenditure patterns, theJEDI model estimates the local economic activity and job impacts of constructing and operating new solar energy facilities.
ii
.According to JEDI analysis, New York can expect to create and sustain an impressive solar workforce from theorderly deployment of 2,200 MW of solar through 2022. Substantial job creation would result from projectdevelopment and on-site labor impacts during the installation and construction period.
iii
JEDI estimates thatthe New York Sun Act would create and support an average of approximately 1,700 individual jobs eachyear through 2022, a total of roughly 17,000 job-years.
iv
With orderly and growing levels of solar development, the peak construction year in 2022 would support roughly 2,300 individual jobs. Importantly,long-term policies such as the NY Sun Act are premised on market transformation potential whereby the solar industry is able to ramp up and sustain operations and development beyond the life of the program.Jobs in the solar industry are high quality jobs across a broad range of education and skill requirements, salarylevels and fields.
v
As highlighted above, the most significant number of jobs are those related to solar projectdevelopment and installation—these are jobs served by the local workforce that cannot be outsourced. Job
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ProjectDevelopment&On-SiteLaborImpacts
creation opportunities also exist in the manufacturing and supply chain sectors. While the solar industry has aglobal manufacturing base, proximity to market potential remains a significant factor for attractingmanufacturing facilities and supply chain vendors to a state. Lastly, advanced research of solar technologiesalso supports a variety of employment opportunities, such as those at the SUNY Nanotech Center.
In addition to direct jobs, New York can expect additional job creation resulting from the development of 2,200 MW of solar. Indirect jobs would result from the increase in demand for goods and services from directon-site project spending. Induced jobs would result from reinvestment and spending of earnings by direct andindirect beneficiaries.
The New York Sun Act, therefore, has the potential to create an additional 31,000 job-years, or an average of 3,100 individual jobs each year through 2022.
Solar facilities also require long-term operations and maintenance (O&M) support; the development of 2,200 MW of solar would createapproximately 620 long-term O&M jobs to ensure that these solar systems are operating at their full potential.These are jobs that, once created, would be sustained for a period of 25 years.
Finally, the earnings from the jobs created by the NY Sun Act (direct, indirect and induced) would totalnearly $3.0 billion.
These wages and salaries would be reinvested back into the state economy, therebysignificantly contributing to New York’s economic engine.
The deployment of 2,200 MW of solar would generate billions of dollars ineconomic activity throughout New York State.
The injection of investment in solar development in New York would trigger several rounds of spendingresulting in increased economic activity. Much like job creation, JEDI accounts for economic output as aresult of direct, indirect and induced impacts. Specifically, economic output refers to the total value of goodsand services generated in the state as a result of the installation and operation of solar energy systems.The JEDI model demonstrates significant economic output resulting from a long-term and scalable solar program such as the New York Sun Act.
The economic output resulting from direct project developmentand supporting services for the construction of 2,200 MW of solar by 2022 would be over $2 billiondollars.
Indirect and induced economic impact is also significant holding the potential to generate an additional $5.3 billion dollars during the 2012-2022 construction period.
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