Solar power could create 123,000 new jobs in Texas by 2020

AUSTIN, Texas, USA, July 4, 2007. Development of the solar industry in Texas would have a significant economic impact for consumers, the environment and workers in the state.

The state could create 123,000 new high-wage manufacturing and electrical services jobs by 2020 by actively moving toward solar power, concludes ‘Opportunity on the Horizon: Photovoltaics in Texas’ produced by the IC2 Institute at The University of Texas at Austin. These jobs would be created across the state as large solar farms grow in West Texas, silicon plants develop along the Gulf Coast and manufacturing centres appear in central Texas.

“The white paper finds the potential for economic growth in Texas through the creation of a vibrant solar power industry,” explains Joel Serface of the Clean Energy Incubator at The University of Texas at Austin. “Worldwide, the cost of converting sunlight to electricity is rapidly decreasing. The right public policies, combined with emerging and increasingly efficient technologies in solar power, would create a solid opportunity for Texas to build an economic engine on this non-polluting resource.”

The paper cites a recent University of California - Berkeley study that finds the solar industry produces seven to 11 times as many jobs (on a megawatt capacity basis) as coal-fired power plants and has a larger positive trickle-down effect than wind energy. The near-term benefits of nurturing the solar energy industry in Texas would stimulate the state's economy, reduce the cost of power for consumers and minimize GHG emissions.

The report evaluates the competitive benefits of Texas in the global market and compares the overall results against other states and international competitors. Although Texas consumes more energy than any other state and has the best overall climate for producing solar energy year-round, it ranked 8th in solar adoption last year, generating only 1/100th of the solar energy of California.

Texans pay 13¢ per kWh for electricity and the report says production of solar PV will follow a predictable decline in costs to less than 15¢ / kWh as early as 2010. In 1999, the Texas Legislature adopted a bill that introduced retail competition in the power market and a renewable portfolio standard which requires providers to increase the amount of solar, wind, geothermal, hydro, wave, tidal, biomass or landfill gas to consumers.

To date, energy producers have focussed on wind energy for a number of reasons, including federal tax incentives for producers, the large amount of wind resources in the state and the scalability of large wind projects, and the report says the legislation has brought many benefits to consumers and can be used as a roadmap for the successful expansion of solar power across the state.

“We've learned that Texas consumers want solar power and that a small RPS nudge would work,” explains Serface. “Relatively minor regulatory encouragement can have major implications in the direction of new-energy investments, increase consumer demand for green power and spur non-wind renewables.”

The report outlines several recommendations to strengthen the state's solar strategy, starting with leadership to create the policies necessary for success. Texas could leverage its natural resources, skilled workforce, existing industries and entrepreneurial spirit to create a new energy industry, the report says.

“Texas would absolutely benefit from the expansion of solar power generation,” the report concludes. “By stimulating demand, Texas, with its enormous consumer market, can drive down the costs of manufacturing and installation.”

“By investing in the intellectual capital in its research centres and universities where PV research is underway and could be expanded, the state can capitalize on existing assets in R&D,” it notes. “Texas companies will become globally competitive, creating wealth, luring out-of state firms to Texas, expanding jobs, and providing clean energy to millions of Texans.”

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