TODAY’S STUDY: NEW ENERGY JOBS, 2012

2012 Clean Energy Jobs Year-in-Review and Fourth Quarter Report

March 2013 (Environmental Entrepreneurs)

Broad Clean Energy Gains In 2012

In his State of the Union address, President Obama laid out national goals to double energy efficiency and production of clean, renewable energy. Based on the clean energy announcements E2 tracked in 2012, we are well on our way to reaching those achievable goals.

More than 110,000 clean energy jobs could be created based on the 300-plus clean energy and clean transportation announcements tracked by E2 last year. These jobs were announced in every clean energy sector and in every region of the country. These jobs are helping to revive the manufacturing sector in states like North Carolina and Ohio, cutting energy costs for municipalities, and scaling up new industries like electric vehicle manufacturing.

Despite 2012’s gains, there were setbacks for the sector late in the year. Specifically, E2 tracked about 2,000 fewer jobs in the fourth quarter in all non-public transportation sectors when compared to the third quarter. E2 also found a sharp fourth-quarter drop in wind energy manufacturing job announcements due to regulatory uncertainty in Washington.

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North Carolina, Solar Gains Outshine PTC Setback

E2 identified several trends in the clean energy economy in 2012. Three of these trends merit highlighting near the top of this report: North Carolina’s strong fourth quarter, solid gains in solar, and the negative effect chronic regulatory uncertainty had on the wind energy manufacturing industry.

North Carolina

First, North Carolina announced more than 7,600 jobs in the fourth quarter alone, thanks to a major light rail project—by far more than any other state. While the West Coast remains a top region for generating clean energy job announcements, growth in two transportation industries—electric vehicle manufacturing and light rail—has vaulted North Carolina into a top-tier state for clean energy jobs, lifting the entire Southeast along with it.

Solar

Second, solar energy was a consistent job creator throughout the year, with 19,100 jobs announced in power generation and manufacturing nationwide. Other clean energy industries experienced steady numbers throughout the year as well—including wind power generation, energy efficiency, advanced vehicle manufacturing, and public transportation. But solar energy’s job announcement gains were noteworthy for their relatively high and steady numbers in every quarter.

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PTC Setback

And third, the clean energy economy hit a speed bump in the wind energy manufacturing industry. Because Congress was slow to act on an extension of the wind energy Production Tax Credit, or PTC, wind energy developers delayed or canceled projects. With a slowdown in orders, wind energy manufacturing companies experienced a corresponding decline in job announcements in the second half of the year.

Early indications from 2013 show that thanks to the PTC’s extension—which was part of the last-minute “fiscal cliff” deal—the wind manufacturing industry has regained some of its footing. For example, Vestas announced it will hire at least 100 workers at its Pueblo, Colorado wind turbine manufacturing plant, a move the company directly attributed to the PTC’s extension. However, layoffs announced in late February elsewhere in the company are a reminder of the lingering effects of delayed action on the PTC.

Specific Projects Illustrate Sector’s Reach

In addition to the aforementioned trends, seven businesses or programs that had compelling stories in 2012 are featured in this report. Most are updates of profiles from previous E2 reports. For example, E2 revisits ABB Inc. in North Carolina, a cable manufacturer for wind farms; the Oregon Cool Schools initiative, a successful statewide energy-efficiency project; and Global Green Lighting, a pioneering manufacturer and installer of radio-controlled light-emitting diode (LED) lighting systems in Chattanooga, Tennessee’s parks and neighborhoods.

For these businesses and projects, policies that emerge from state capitals and Washington, D.C., matter. Comments made by President Barack Obama in his Inaugural Address and in the State of the Union demonstrate that his administration recognizes that clean energy is a significant job creator. And as E2’s analysis shows, if the proper, long-term regulatory environment is firmly put into place, 2013 could be another year of growth for America’s clean energy jobs…

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Regions Across Country Are Hosts To Different Technologies; Southeast A Clean Energy Manufacturing Hub

Different regions of the country are emerging as hubs for different clean energy technologies. For example, the West Coast saw public transportation projects in Los Angeles and the Bay Area. And in the solar industry, the West Coast also experienced heavy job announcement numbers thanks to the nearly 20 solar farms sprouting up across California.

In the Southwest, energy-efficiency manufacturing has experienced gains in job announcements in states like Arizona. Led by Illinois, the Midwest was one of the top regions for growth, largely attributable to smart transmission upgrades.

The Southeast led all U.S. regions for clean manufacturing with more than 13,700 jobs announced in 2012—about 80 percent of the nation’s total in that sector. Solar, advanced vehicles, and wind were the lead industries for manufacturing in the Southeast.

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North Carolina Emerges As National Leader In Clean Jobs

North Carolina is emerging as a leader in clean energy job creation, especially in the electric vehicle space. With a strong manufacturing workforce, the state is electrifying our automobile fleet: nearly 2,000 new jobs were announced in this space in North Carolina in 2012.

For example, Biowheels RTS in Asheville makes solarpowered charging stations for electric vehicles. The company expects to bring 1,500 jobs to build more than 900 public charging stations throughout the state by 2015.

Due to another form of transportation—light rail—North Carolina showed strong clean energy job creation in the

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Due to another form of transportation—light rail—North Carolina showed strong clean energy job creation in the fourth quarter of 2012. In October, the City of Charlotte announced plans to extend its light rail system by 9.2 miles, connecting uptown Charlotte with the University of North Carolina’s Charlotte campus. With construction to commence in late 2013, the project is expected to generate an estimated 7,000 new jobs, and be completed by 2017.

E2 includes light rail projects in its clean energy jobs reports because such projects displace the need for automobiles and other modes of transportation that are less energy efficient. Commuters who take advantage of public transit often save considerable time and money and enjoy a safer mode of transportation than single occupancy automobiles.

Public Transportation, Power Generation Lead All Sectors

Public transportation saw the highest number of job announcements with as many as 43,000 jobs in projects that will build or expand public transit, such as city light rail, intercity passenger rail, and bus routes and terminals. Power generation jobs came in second for the year with more than 30,000 jobs announced, the bulk of which came from solar, wind, and geothermal energy. Manufacturing, energy efficiency, and smart grid and transmission jobs announced rounded out the top five sectors.

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Energy Efficiency Attains Record Investment Levels

Energy efficiency job announcements tracked by E2 showed that as many as 9,000 jobs were distributed across at least 20 states, covering all major regions of the country. Based on the most recent government energy data available, it is estimated that energy efficiency in this area reached $5.6 billion in 2011, which is greater than 1 percent of all electric and gas utility expenditures in 2011. This investment in efficiency that continues to grow across the United States has yielded more than twice the savings for businesses and consumers by way of lowered utility bills.

Solar Shines In Fourth Quarter; PV Installation Prices Falling

The solar industry continues to mature globally, and it is one of the fastest-growing sectors of the U.S. economy. Solar is projected to show a gain of more than 40 percent in new total capacity in 2012 in the United States. Because of this overall growth, solar had strong fourth quarter job announcements relative to other industries.

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In the fourth quarter, solar led the way with a combined 15 announced projects in power generation and manufacturing. This is more than all the other technologies (wind, biomass, biogas, geothermal) E2 tracked in the power generation and manufacturing categories combined. These solar projects could add up to more than 3,300 jobs, the majority coming from power generation.

Throughout 2012, one of the main solar industry themes was rapid solar PV price decline due to oversupply.

Upstream oversupply is helping to lower installed cost of solar across the country. Also helping drive down costs is the U.S. Solar Investment Tax Credit, as well as state and locally mandated renewable portfolio standards.

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Conclusion

As numbers from 2012 and the fourth quarter showed, states across the country have made gains in the clean energy sector. Thanks to technologies like electric vehicles, and projects like Charlotte’s light rail development, North Carolina is emerging as a clean energy leader. And in California, the solar industry remains on an upward trend due to a sunny climate and favorable state tax policies.

At the federal level, when Congress delayed the extension of the wind energy PTC, companies—and in particular manufacturers—laid off more than 3,000 workers. This decline was stark in the third quarter as the PTC’s expiration approached. But with a slightly more firm regulatory footing now in place, wind energy companies have resumed some hiring. As we reflect back on 2012 and look forward to 2013, the future of clean energy comes into sharper focus: smart, serious companies will continue to develop projects that will generate more clean, renewable energy; reduce our energy waste; provide better choices for transportation and ultimately help drive economic growth. But in order to establish optimal conditions for the clean energy sector’s growth, governments at all levels should enact stable, predictable policies.

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