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Solar Energy: Economic Impact of Extending the Section 1603 Treasury Program

Posted by Content Coordinator on Friday, October 21st, 2011

SOLAR ENERGY INDUSTRIES ASSOCIATION

Executive Summary

The U.S. solar market has experienced rapid growth in the last few years and is poised to continue growing over the next five years according to our baseline forecast. However, extending the TGP would significantly accelerate this growth, increasing investment, employment and deployment across the U.S. While an extension would benefit all sectors of the solar industry, utility-scale solar development would see some of the longest lasting impacts due to the long project development process.

Extension of the 1603 Treasury Program

A one-year extension of the 1603 Treasury Program through 2012 would have the greatest impact on economic activity in 2012 and 2013, as well as enable growth through 2016 as projects complete construction and come online.

  • An additional 37,000 jobs would be supported by the solar energy industry in 2012, a 12% increase over baseline.
  • The additional cumulative capacity installed through 2016 would be 2,000 megawatts over baseline, enough to power 400,000 homes.

Two-Year Extension

A two-year extension of the TGP commence construction deadline through 2013, would yield 51,000 additional jobs in the solar energy industry in 2013, a 16% increase over baseline, and would result in 3,650 megawatts of cumulative additional capacity installed through 2016.

Five-Year Extension

A five-year extension of the TGP to coincide with the term of the investment tax credit would support an additional 114,000 jobs in the solar energy industry in 2015, a 32% increase over baseline, and would result in 7,450 megawatts of cumulative additional capacity installed through 2016. A predictable five year policy framework will generate an environment that fosters industry growth larger than the potential year-to-year extensions and would create sustained momentum for the industry.

Additional Employment by Extension Scenario

Additional Employment Supported by the U.S. Solar Energy Industry in 2012, 2013 and 2016

Additional Employment Supported by the U.S. Solar Energy Industry in 2012, 2013 and 2016

The baseline U.S. solar employment forecast calls for significant growth.

  • However, if the program is extended by 1 year, total employment will exceed the baseline forecast by over 37,000 in 2012. Of that, over 18,000 will be directly employed by solar companies or employed indirectly by firms that support the solar industry. An additional 19,000 jobs will be induced by the industry’s economic activity.
  • If the program is extended by 2 years, total employment will grow an additional 51,000 in 2013.
  • A 5-year extension will push the U.S. employment supported by the solar energy industry to almost 114,000 over baseline including 55,000 direct & indirect solar workers.

Additional Employment Supported by Extending the 1603 Treasury Program

Additional Employment Supported by Extending the 1603 Treasury Program

Extending the program by 1 year will yield an additional 37,000 jobs in 2012 supported by the solar industry compared to the baseline.

  • A 2-year extension would support an additional 51,000 jobs in 2013.
  • Extending the program by 5 years will yield an additional 114,000 jobs supported by the solar industry in 2016. compared to baseline.
  • Each scenario results in an employment peak in a different year.

Download full version (PDF): Economic Impact of Extending the Section 1603 Treasury Progra

About Solar Energy Industries Association

www.seia.org

“Established in 1974, the Solar Energy Industries Association is the national trade association of the U.S. solar energy industry.  As the voice of the industry, SEIA works with its 1,000 member companies to make solar a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy.”

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