For Each $1 of Solar Incentives Returns $2.46

PROVING the advantage of incentives for renewable energy uptake a recent survey reported that for each $1 invested in solar energy it returned $2.46 to the local economy.

In 2014 Solar Washington, an educational non-profit, collected data from solar installers and manufacturers directly involved in the solar industry in Washington State, USA.

The data was gathered in order to gain insight into the solar industry's collective impact upon the state economy. Based on the data collected reflecting business activity in 2013, the results show that for every one dollar of the Washington State solar incentive redirected to PV system owners, the state sees $2.46 injected back into the local economy.

In the case of 2013 installations, $48.2M will be injected in to the economy as a result of the $19.6M that the state will pay out in solar incentives.

“Based on the data we’ve gathered, solar incentives in Washington State pay for themselves many times over and are a boon to the state economy," said David Nicol, Board President of Solar Washington.
 
Here’s how the $48M breaks out as injections into the Washington local economy: 

  • $25.4 million in payroll
  • $21.5 million in equipment purchases from in-state suppliers and vendors
  • $1.3 million in tax revenues to state and local governments.

The Washington state solar incentive program (known as the Washington State Cost Recovery Incentive Payment Program) was created in 2006, and last year enabled utilities to redirect $2.8 million in taxes as incentives to homeowners and small businesses that installed new solar systems. Over the seven years that these 2013 installations will collect incentives, utilities will redirect a total of $19.6M to them in the form of incentive payments. 

In all likelihood, these numbers under-represent the impact of the solar industry in Washington state. The Solar Washington survey represents 55 companies and 786 jobs. However, the Solar Foundation conducted a census of solar jobs in Washington State and concluded that in 2013 there were 102 solar companies representing 2,000 jobs involved in the manufacturing, installation and sales of solar in Washington State.

Given the larger numbers of companies and jobs represented by the Solar Foundation’s Solar Census, the impact of the solar industry in Washington could actually be twice as large as demonstrated by the Solar Washington survey.

Source: Solar Washington.

Thursday 29th January 2015


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