The Western Way released, “The Economic Benefits of Utah’s Rural Renewable Energy Industry.” The economic impact study was conducted by Development Research Partners and analyzed rural utility scale renewable energy projects constructed in 11 counties in Utah.
These projects account for 2,275 megawatts of nameplate capacity from solar, wind, and geothermal facilities over 10 megawatts. The report analyzed 31 projects built in Utah (5 under current development or construction slated for completion by 2023) which result in significant economic benefits to rural Utah including:
$5.3 billion in total output from construction and investment activity in from 2007 to 2023. • 9,051 total jobs (Direct and Indirect employees) earning $442.8 million in wages.
$4.1 billion from construction and investment with 4,368 full-time constructions jobs.
$154.4 million in total annual economic output with 568 employees earning $32.1 million annually.
$24.6 million in annual property taxes paid to local governments.
$6.3 million in annual lease payments to ranchers, farmers, and other landowners.
“During my time as Governor, I was in strong support of an All-Of-The-Above approach to energy development,” said former Governor Gary Herbert. “This is the first time I have seen quantified the state-wide economic benefit of renewable energy projects of all types in Utah. It’s impressive when you consider the megawatt output from the 31 utility-scale projects that encompass solar, wind and geothermal. The Western Way has done an excellent job guiding and sponsoring this study and our rural counties especially are benefiting greatly from this economic driver that I suspect is just going to grow.”
Renewable energy in Utah has historically been dominated by hydroelectric power, but solar, wind, and geothermal have grown in significance over the past two decades. The state’s high altitude, cooler temperatures, available sunshine, and affordable land have made the state a prime location for renewable energy development facilities.
Nearly 1 gigawatt of utility-scale solar in Utah was built in 2015 and 2016, more capacity than hydroelectric, geothermal, and wind combined, creating a large spike in renewable energy production in recent years. Electricity generation from all solar facilities, both small-scale and utility-scale, accounted for about 58 percent of the state’s renewable generation and was 30 times greater than in 2015. At the end of 2020, Utah ranked 10th among the states in the amount of solar generating capacity, with 1,525 MW installed.
The release of the report drew support from elected officials and Utah leaders:
“We’ve known for some time that a dramatic change is happening with the transition to new energy but I don’t think anyone knew that it’s having a $5.3 billion economic impact in Utah. The fact that workers in construction and maintenance has risen to over 9,000 is impressive. This number is just going to grow and I’m pleased that rural Utah is benefiting so much from these projects.”
J Stuart Adams President Utah State Senate
“The transition to new energy is happening very rapidly but some have questioned whether or not the economic impact is significant. This new study highlights and proves that renewable energy development has brought significant investment to the state. $4.1 billion in construction and investment from 2007 projected to 2023 is pretty impressive! I think we’re just seeing the tip of the iceberg. When it comes to wind, solar, and geothermal, money and markets are flowing together in an impressive and significant way and the positive economic impact of these projects in Utah is going to continue at break-neck speed.”
Stephen G. Handy Representative Utah House of Representatives
“In Beaver County we have to use the assets we have for economic development and with plenty of sunshine and wide-open spaces we have become one of the most-desirable locations for utility-scale solar in Utah. Renewable energy facilities have brought significant development to Beaver County and we expect it to continue. We are excited about the positive economic impact these projects are having to create jobs and tax revenue.”
Mark Whitney Commissioner, Beaver County
“The new report sponsored by The Western Way highlights the economic impact of renewable energy development and projects throughout the state. I’m really pleased to see what’s happening in Iron County and quantified here in this report. We are also excited about some of the geothermal activity that’s taking place over in New Castle. This could be really exciting in terms of additional job creation and positive economic activity for Iron County.”
Paul Cozzens Commissioner, Iron County
“This new report provides a comprehensive assessment of the economic impacts renewable energy – solar, wind, and geothermal – are making in Utah, fostering a rural renaissance across the state in terms of investment and monetary impacts, local jobs, and tax revenues. This report should give state, county and city policymakers the assurance that local projects will benefit their neighbors and communities.”
Edwin R. Stafford Ph.D. Professor of Marketing Jon M. Huntsman School of Business Utah State University