• New report models impact of 8 announced large-scale clean energy projects tracked by E2 in Arizona during the first year after the IRA was signed into law (Aug. 2022-Aug. 2023)

  • During construction, projects will generate nearly 16K jobs, $5.2B in new wages, add $6.8B to Arizona’s GDP

  • During operation, projects will support nearly 3K jobs, generate $245M in wages, add $435M to Arizona’s GDP every year

PHEONIX (July 3, 2024) – Large-scale clean energy projects announced in Arizona in the year after the federal Inflation Reduction Act (IRA) was signed into law are projected to create or support over 18,700 jobs and generate billions of dollars in new wages, tax revenue, and economic growth.

The new economic analysis by BW Research released today by the national nonpartisan business group E2 modeled the direct, indirect, and induced economic benefits created by the 8 clean energy and electric vehicle projects announced across Arizona tracked by E2 between August 2022 and August 2023.

Companies behind these projects — ranging from battery storage and solar generation systems to EV and car charging equipment facilities — have announced nearly 2,300 in direct jobs created by their projects and $5.9 billion in direct investments for these factories and other facilities.

But when indirect and induced impacts to other sectors of Arizona’s economy are included, the overall economic impacts are nearly seven times as many jobs and includes billions added to the state’s gross domestic product (GDP) during construction and operation of these projects.

More specifically, the analysis found that these projects would:

  • Create or support 15,800 jobs during construction and 2,900 jobs every year once the projects are up and running;
  • Add $6.8 billion to Arizona GDP during construction and $435 million annually to the state GDP over their operational lifetime; and
  • Generate $5.2 billion in wages for workers during construction and $245 million annually during operation; and
  • Generate $333 million in new state, and local tax revenues during the construction phase and $29 million annually during operation.

While the analysis only covers the 8 projects announced in the first year of the IRA, at least 2 more large-scale clean energy and clean vehicle projects have been announced since then. In total, companies have announced more than $6.4 billion in private-sector investments and over 2,300 jobs in direct connection with 10 total projects announced in the state since August 2022, according to E2’s research.

Arizona Clean Economy Works | An Economic Impact Analysis of Major Clean Energy, Vehicle Projects is based on E2’s national economic impact analysis of clean energy projects announced in the first 12 months of the IRA.. That report found that nationwide, 210 large-scale clean energy projects announced in the first year of the IRA would create or support more than 400,000 direct, indirect and induced jobs and add hundreds of billions of dollars in new wages to the nation’s economy. While the construction industry and its supply chain will see the biggest benefits, other sectors ranging from healthcare and hospitality to retail trade and real estate will also benefit greatly.

The impacts of the IRA have solidified Arizona’s significant role in the U.S.’s energy and economic transition, according to Michael Timberlake, communications director for E2:

Timberlake said:
“Arizona’s energy transition efforts are not only creating thousands of jobs and bringing vital investments into the Grand Canyon State, but they are also changing lives in Arizona through new revenues, jobs, and growth for all types of businesses. Even if not every household has an EV and solar panels installed, all of Arizona is living in a state that is a leader in the economic transition for the U.S.”

According to the analysis, announced battery storage projects are poised to deliver the biggest economic benefits, creating or supporting more than 9,400 jobs and adding $808.9 million to Michigan’s GDP every year for five years during construction. Electric vehicle-related projects were second with 6,200 jobs supported spurred by $2.4 billion capital investment, followed by solar energy projects 150 jobs supported spurred by $60 million in capital investment.

Once the plants and facilities are up and running, battery storage-related projects are expected to create and support nearly 1,850 direct and indirect jobs and generate $285 million in economic activity every year for the life of the projects.

About this Analysis
This analysis provides a thorough economic prediction of the impacts of the 8 announcements by filling in the gaps of publicly announced information. Modeled impacts differ from initial estimates offered by companies announcing new projects, tracked by E2. One of the eight announcements provided no capital investment estimate and two provided no job creation estimate. Additionally, those estimates were inconsistently defined, lacking clarity on if they are direct jobs only or direct, indirect, and induced jobs, and if they were for construction or permanent positions.

For E2’s regularly updated list of clean energy project announcements in Arizona and every other state, visit https://e2.org/announcements.

Additional Resources

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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on Twitter at @e2org.

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