1. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Economic Benefits of Solar and Renewable Energy PRESENTED BY BARRY BROOME, GPEC PRESIDENT AND CEO

2. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Greater Phoenix Economic Council The Region’s Economic Development Organization A true regional model where public and private members collaborate to promote Greater Phoenix as a great place to grow business. Supported by Maricopa County, 18 cities and towns, and more than 140 private-sector businesses. The catalyst that strengthens the region’s economic base, ensuring it is both diversified and competitive.

3. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Recent Economic Trends in Arizona Dramatic Decline in Job Growth Source: U.S. Bureau of Labor Statistics #19 #49

4. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Single Industry Model is Not Sustainable Arizona vs. Michigan: Jobs Lost by Industry Nov 2007-Nov 2008 Arizona’s Dependence on Construction* Construction Job Loss: 37% Michigan’s Dependence on Auto Industry* Manufacturing Job Loss: 31% * Motor vehicle manufacturing represents about 6.2% of all private industry employment in Michigan. (2007) * Construction represents about 8.6% of all private industry employment in Arizona. (2007)

5. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Solar a Fast-Growth Industry Global Solar Investment Trends Total investment in solar energy reached $12B in 2007, from $66M in 2001. Between 2004-2007, total investment increased by almost 20-fold. *Excluding government R&D and project finance investments Source: NEF / NREL / FACC

6. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Public offerings of solar companies grew rapidly (2005-2007), with 45, 64 and 88 offerings, sequentially. $1.1B was raised (Q1-08) in 17 completed public-equity offerings. Solar a Fast-Growth Industry Global Solar Investment Trends Source: NEF / NREL / FACC

7. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Source: Navigant Consulting U.S. solar-supported employment will add 276,000 jobs. (2009-2016) 1 in 4 U.S. workers in renewable energy / energy efficiency industries by 2030. (includes engineering, manufacturing, construction, accounting, management) GROWTH OF A GREEN-COLLAR WORKFORCE U.S. solar installations will rise. Total U.S. solar-related investments will increase by $232B. (2009-2016) EXTENSION OF 8-YEAR TAX CREDIT Invest $150B over next 10 years to catalyze private- sector efforts. Ensure 10% of nation’s electricity from renewable sources by 2012 and 25% by 2025. PRESIDENT OBAMA’S ENERGY PLAN GOAL Create 5 million new green jobs Solar and Renewable Energy are Important for the U.S. National Factors Driving Industry Growth

8. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Solana 85 jobs; $1B investment Producing power Consuming technology STRATEGICALLY POSITIONED MAKING SOLAR REAL AZ missing economic opportunities for high-wage jobs Schott: Lost to New Mexico 1,500 jobs and $586M investment; Supplier to APS & SRP PV distribution to housing Net-metering; APS & SRP; distributive technology Opportunity to Capture Solar Arizona Strategically Positioned for Full Economic Upside

9. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG GPEC’s Solar Pipeline Current Solar Projects Number of Projects Number of Jobs Capital Investment ($Mil) Average Annual Wage Average Facility Size (SF) 296,532$8,444$46,670479,059 Includes PV and thin-film manufacturing, utility scale power generation, distributed generation, and supplier projects. 11 projects in the pipeline, worth $5.2 billion in capital investment and 5,260 jobs, are eligible for the proposed tax credit program. Source: GPEC Jan 15, 2009

10. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? Sample Project Comparisons PV MANUFACTURER 400 jobs $100M investment 200,000 SF 20 acres THIN-FILM MANUFACTURER 700 jobs $145M investment 400,000 SF 40 acres GLASS MANUFACTURER 150 jobs $75M investment 150,000 SF 15 acres SOLAR HQ 50 jobs $17.7M investment 30,000 SF 3 acres ELECTRICAL GENERATION 140 jobs $1B investment 50,000 SF 1,800 acres Based on actual projects from GPEC pipeline except for headquarters, which is a composite of past headquarter projects.

11. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? PV Manufacturer PV MANUFACTURER 400 jobs $100M investment 200,000 SF 20 acres BENEFIT 400 direct jobs 1,208 total jobs $78.6M revenues*$2.5B output* BENEFIT UNDER PROPOSED LEGISLATION 10% of capital investment or $10M in tax credit 77% property tax reduction through reclassification *Over 10 years

12. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? Thin-Film Manufacturer THIN-FILM MANUFACTURER 700 jobs $145M investment 400,000 SF 40 acres BENEFIT 700 direct jobs 1,552 total jobs $104.1M revenues*$2.7B output* BENEFIT UNDER PROPOSED LEGISLATION 10% of capital investment or $14.5M in tax credit 77% property tax reduction through reclassification *Over 10 years

13. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? Glass Manufacturer GLASS MANUFACTURER 150 jobs $75M investment 150,000 SF 15 acres BENEFIT 150 direct jobs 283 total jobs $18.2M revenues*$409M output* BENEFIT UNDER PROPOSED LEGISLATION Reduced tax credit of $5M** 77% property tax reduction through reclassification *Over 10 years. **This project does not meet jobs-to-capital investment criteria.

14. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? Solar Headquarters SOLAR HQ 50 jobs $17.5M investment 30,000 SF BENEFIT 50 direct jobs 100 total jobs $6.5M revenues*$136M output* BENEFIT UNDER PROPOSED LEGISLATION 10% tax credit or $1.75M *Over 10 years

15. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG What are the Economic Benefits? Electrical Generation ELECTRICAL GENERATION 140 jobs $1B investment 50,000 SF 1,800 acres BENEFIT 140 direct jobs 196 total jobs $57.6M revenues*$318M output* BENEFIT UNDER PROPOSED LEGISLATION GPEC’s proposed program would not incentivize generation projects. *Over 10 years

16. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Final Thought Renewable Energy + Economic Development 1,800 ACRES 1 GENERATION PLANT 45 THIN-FILM MANUFACTURERS 90 PV MANUFACTURERS ECONOMIC BENEFIT 31,500-36,000 Direct Jobs $6.5-$9B Cap Investment $4.7-$7.1B Revenues* *Over 10 years For the same amount of land… or

17. GREATER PHOENIX ECONOMIC COUNCIL 602.256.7700 WWW.GPEC.ORG Questions Thank You for Your Time! Barry Broome President and CEO Greater Phoenix Economic Council bbroome@gpec.org 602.256.7700