As Tennessee’s clean energy economy expands, the industry will contribute to statewide economic vitality. With a diverse renewable energy portfolio and robust employment across all value-chain activities, employers are optimistic about future growth. Increased support for local suppliers and vendors will encourage successful industry expansion, spur local job creation, and further bolster the state’s economy.
Tennessee could capitalize on its market diversity by tapping into the region’s renewable potential and committing to energy efficiency as a resource. The National Renewable Energy Laboratory (NREL) found that Tennessee’s technical solar potential for utility-scale projects is 1,296 GW and 16 GW for rooftop photovoltaics. With an additional 54 GW potential from geothermal systems and 1 GW from hydropower, the state’s clean energy cluster will benefit by developing these resources.49 Other states provide solid examples of how effective energy efficiency policies focused on consumer incentives, rebates and proactive utility programs can create jobs across traditional industries, especially within the building trades.50 States that are leaders in energy efficiency have illustrated that supportive clean energy policies are highly correlated to economic impacts, particularly regarding construction-related employment. If Tennessee could emulate these policies, the resulting employment impact could exceed 10,000 new clean energy jobs across the state.
Tennessee is already home to more than 2,600 clean energy employers and nearly 45,000 workers. Its companies supply the market with electric cars, energy efficient materials, renewable energy and advanced building controls. Clean energy employers are adding jobs faster than the overall state economy and project continued growth in the coming year. To sustain this growth, many firms report the need for greater consumer incentives, more supportive policies on renewable energy and more innovative financing mechanisms to expand the state’s clean energy market.