MASSACHUSETTS SOLAR JOBS CENSUS

2015 MASSACHUSETTS SOLAR JOBS CENSUS

ABOUT THE SOLAR FOUNDATION The Solar Foundation (TSF) is an independent 501(c) (3) nonprofit organization whose mission is to increase understanding of solar energy through strategic research and education that transforms markets. TSF is considered the premier research organization on the solar labor workforce, employer trends, and the economic impacts of solar. It has provided expert advice to leading organizations such as the National Academies, the Inter-American Development Bank, the U.S. Department of Energy, and others during a time of dynamic industry growth and policy and economic uncertainty. While TSF recognizes that solar energy is a key part of our energy future, it is committed to excellence in its aim to help people fairly and objectively gauge the value and importance of solar technologies. ABOUT BW RESEARCH PARTNERSHIP BW Research is widely regarded as the national leader in labor market research for emerging industries and clean energy technologies. In addition to the Census series, BW Research has conducted rigorous solar installation and wind industry labor market analysis for the National Renewable Energy Laboratory, wind energy and energy retrofit studies for the Natural Resources Defense Council, a series of comprehensive clean energy workforce studies for the Commonwealth of Massachusetts, Illinois, Vermont, Florida, Pennsylvania, Iowa, and California, as well as numerous skills and gap analyses for community colleges, workforce investment boards, state agencies, and nonprofit organizations. COVER IMAGE THE NATIONAL RENEWABLE ENERGY LABORATORY

ACKNOWLEDGEMENTS The Solar Foundation (TSF) is a national 501(c) (3) nonprofit organization whose mission is to increase understanding of solar energy through strategic research and education that transform markets. In 2010, TSF conducted its first National Solar Jobs Census report, establishing the first credible solar jobs baseline and verifying that the solar industry is having a positive impact on the U.S. economy. Using the same rigorous, peer-reviewed methodology, TSF has conducted an annual Census in each of the last six years to track changes and analyze trends. This report is an offshoot of TSF s National Solar Jobs Census 2015 effort. Research partners for the Census 2015 effort include the George Washington University Solar Institute for providing assistance and support in reviewing and validating report results and analysis; the Solar Energy Industries Association (SEIA) for use of its National Solar Database and peer review; and GTM Research/SEIA for providing survey respondents with the U.S. Solar Market Insight: 2014 YIR report. Sponsors of this year s Census effort include: Energy Foundation, William and Flora Hewlett Foundation, Tilia Fund, George Washington University Solar Institute, SEIA, Recurrent, SolarCity, First Solar, Sol Systems, E.ON, Trina Solar, State of Minnesota Department of Commerce, State of New Mexico Energy Minerals and Natural Resources Department, Utah Governor s Office of Energy Development, spower, Standard Solar, CALSEIA, All Earth Renewables, and grosolar. Finally, we want to thank all the Massachusetts employers that participated in the survey. Your responses were critical in providing us with accurate and timely data. For questions or comments about this report, please contact either: Andrea Luecke President and Executive Director The Solar Foundation 202-469-3750; aluecke@solarfound.org www.thesolarfoundation.org Philip Jordan Principal and Vice President BW Research Partnership 508-384-2471; pjordan@bwresearch.com www.bwresearch.com Please cite this publication when referencing this material as Massachusetts Solar Jobs Census 2015, The Solar Foundation, available at: www.tsfcensus.org and SolarStates.org

1 MW PV ARRAY AT THE KENNEDY SPACE CENTER IMAGE COURTESY OF NASA/JIM GROSSMANN Photo courtesy of Blackacre Design and Development, LLC

INTRODUCTION The U.S. solar industry experienced yet another record-breaking year in 2015, with more than 7,400 megawatts (MW) of domestic photovoltaic (PV) capacity expected to have been installed an 18.5% increase over that of 2014 bringing total U.S. solar capacity to nearly 27.5 gigawatts (GW). 1 As the rate of capacity installation has accelerated, employers across the country have continued to expand the size of their payrolls. This year s sixth annual National Solar Jobs Census found that the U.S. solar industry employed 208,859 workers as of November 2015, representing the addition of 35,052 jobs, and a 20.2% increase in employment over November 2014. Since The Solar Foundation began tracking these numbers in 2010, employment in the industry has more than doubled, growing by 123% and adding over 115,000 jobs. Employers nationwide expect this growth trend to continue through 2016, projecting to add nearly 31,000 jobs to the solar workforce over the course of the year. 250,000 U.S. PV Capacity Additions & Solar Jobs, 2010-2015E 8,000 200,000 173,807 208,859 7,000 6,000 Solar Jobs 150,000 100,000 50,000 93,502 105,145 119,016 142,698 5,000 4,000 3,000 2,000 1,000 Added Capacity (MW) 0 2010 2011 2012 2013 2014 2015E 0 PV Capacity Additions Solar Jobs Capacity Data Source: SEIA/GTM Research Solar Market Insight Q3 2015 1

350 Massachusetts Solar Capacity Additions, 2010-2015E Added Capacity (MW) 300 250 200 150 100 50 0 2010 2011 2012 2013 2014 2015E The Massachusetts solar industry has flourished in recent years. For decades, statewide solar deployment has been supported by a robust and growing policy commitment aimed at growing investment in solar energy. Though annual capacity additions in 2015 are expected to have decreased year-over-year for the first time this decade, the Massachusetts solar industry remains strong. At the end of 2015, the state s cumulative installed solar photovoltaic (PV) capacity is expected to have exceeded 1,000 megawatts (MW), making Massachusetts one of only six states to have met or surpassed this milestone (a list that also includes solar powerhouses such as California, Arizona, North Carolina, New Jersey, and Nevada). 2 Though the state ranks just outside the top five in terms of total installed capacity, its focus on the more labor-intensive residential and nonresidential market segments (as compared with the utility-scale segment) has contributed to its ranking as 2nd in the nation in terms of total solar employment. 3 As of November 2015, the Massachusetts solar industry supported 15,095 solar workers. 4 Employers throughout Residential Non-Residential Utility Source: SEIA/GTM Research Solar Market Insight Q3 2015 the state remain optimistic about growth, expecting the Massachusetts solar workforce to expand by 8.6% in the coming year, representing the addition of nearly 1,300 solar workers and increasing the state solar employment total to just under 16,400. 5 While Massachusetts is not typically associated with a strong solar resource, a rooftop solar PV system installed in Boston produces just over 90% of the electricity on an annual basis as a comparable system operating in Miami, Florida. 6 Coupled with some of the highest average retail electricity rates in the contiguous United States (17.11 cents per kilowatt-hour (kwh), over 60% more than the national average of 10.51 cents per kwh), the Massachusetts solar resource and its robust pro-solar state policies are more than sufficient for providing positive financial returns on an investment in solar. 7 To date, Massachusetts solar growth has been largely driven by the non-residential market segment, including community shared solar, municipal, and commercial projects, which represented nearly 70% of the state s cumulative installed solar capacity through 2015. While the 2

first quarter of the year was the strongest Q1 ever for this market segment, capacity additions began to slow in Q2 and Q3 as developers adapt to the more restrictive provisions of the SREC II incentive program and as parts of the state reached net metering program caps. 8 The Solar Renewable Energy Certificate (SREC) II program is part of a broader state policy, the Massachusetts Renewable Portfolio standard, which requires 15% of each investor-owned utility and retail electricity supplier s sales be derived from new renewable sources by 2020. Once this initial standard has been met, utilities and suppliers are required to obtain an additional 1% of sales from renewables each year thereafter. In 2010, the state included a solar carve-out requirement that 400 megawatts (MW) of the 15% standard come from solar facilities within the state. This requirement gave rise to a strong Solar Renewable Energy Certificate (SREC) market, which provided an additional revenue stream for solar energy system owners. The 400 MW carve-out was achieved well ahead of schedule, spurring the state to increase the requirement to 1,600 MW under the SREC II program. 9 In general, it is common for a single SREC to be generated for each megawatt-hour (MWh) of solar electricity generated. Under the SREC II program, however, projects are divided into market sectors and assigned an SREC factor that can increase the amount of solar electric generation required to produce a single SREC. For small-scale systems ( 25 kw), SRECs are still generated for each MWh produced (an SREC factor of 1.0). Larger systems, those sited on landfills or brownfields, and virtually netmetered projects (all of which fall under the non-residential market segment) receive lower SREC factors, ranging from 0.9 (i.e., 0.9 SRECs generated per MWh) down to 0.7. 10 Further contributing to the under-performing non-residential market segment in 2015 were the constraints imposed by net energy metering (NEM) caps in certain electric utility service territories. During the year, National Grid, the state s largest investor-owned utility, reached its state-mandated net metering cap, 11 effectively putting a halt to new non-residential projects in nearly 200 municipalities throughout the state. Despite concerted efforts to arrive at a legislative solution to the net metering issue, the year ended without these caps being raised. 12 As a result of these factors, Massachusetts is expected to have experienced its first-ever annual decline in the non-residential market segments in 2015. As of November 2015, the Massachusetts solar industry supported 15,095 solar workers. By contrast, residential solar remains relatively strong in Massachusetts, with new capacity in this segment nearly equaling annual nonresidential capacity additions for the first time in the state s history. One of the key reasons for this relative success is that the residential market does not face the two major challenges that have slowed non-residential growth. Small renewable energy systems are exempt from utility NEM aggregate capacity limits, 13 and they generate one full SREC for each MWh of solar electricity produced. 14 Third-party ownership of solar energy systems remains a key financing tool for these systems, accounting for around 70% of new residential installations each quarter since mid-2014. 15 The residential market segment has also benefited from a small, yet highly-visible statewide Solarize campaign through which communities across the state competitively select program installers and aggregate local residential demand for solar in exchange for discounted installation costs. To date, around 17 MW of new residential solar capacity has been installed under such programs in over 50 Massachusetts communities. 16 3

Despite policy uncertainty affecting the state s perennially key non-residential market segment, Massachusetts remains one of the nation s strongest solar states, with 2016 installed capacity across all market segments projected to exceed that expected by the end of 2015.17 Solar employers in the state are optimistic though guardedly so about employment growth over the next twelve months. This report includes information about all types of Massachusetts companies engaged in the analysis, research and development, production, sales, installation, and use of all solar technologies ranging from solar photovoltaics (PV), to concentrating solar power (CSP), to solar water heating systems for the residential, commercial, industrial, and utility market segments. per-dollar) assumptions, The Solar Foundation s Solar Jobs Census series provides statistically valid and current data gathered from actual employers. This analysis also purposefully avoids artificially inflating its results with questionable multiplier effects often found in analyses of other industries. ABOUT THE MASSACHUSETTS SOLAR JOBS CENSUS 2015 The findings presented herein are based on rigorous survey efforts throughout the months of September, October, and November 2015 that include telephone calls and emails to known and potential solar establishments across Massachusetts. Unlike economic impact models that generate employment estimates based on economic data or jobs-per-megawatt (or jobs- The number of establishments included in this report include all businesses that conduct any solar activity. This includes many businesses that play a very small part in a solar project, or provide financing, legal services, or other support services to solar firms. Employment, however, is only counted for workers that spend at least 50% of their time on solar. A full explanation of this methodology can be found on page 19 of this report. Photo courtesy of Mass. Office of Energy & Environmental Affairs 4

MASSACHUSETTS SOLAR JOBS Key Data Points Total Solar Jobs, 2015 15,095 Cumulative Installed Capacity thru Q3 2015 (MW) 18 944.5 Projected Solar Jobs Growth, 2016 1,298 (8.6%) Capacity Installed in 2015 thru Q3 (MW) 19 193.3 Detailed employment and demographic data for Massachusetts legislative districts, counties, and metropolitan statistical areas can be found in the appendix of this report and on The Solar Foundation s interactive jobs map at SolarStates.org.

Installation Jobs 8,741 Manufacturing Jobs 2,098 Sales & Distribution Jobs 901 Project Development Jobs 2,811 Other Jobs 544 WORKFORCE OVERVIEW The Massachusetts solar industry employs 15,095 solar workers at 2,050 business establishments throughout the state, is ranked 2nd nationally in terms of solar jobs, and 5th in solar jobs as a share of the state s total employment. Employers throughout the state remain optimistic about future growth, expecting the Massachusetts solar workforce to expand by 8.6% or 1,300 workers in the coming year, increasing the state solar employment total to just under 16,400. Over half of the state solar workforce is employed by installation firms (57.9%; very close to the proportion observed at the national level). The nextlargest employment sector is utility-scale project development (companies that plan, design, and construct large solar energy projects), accounting for 18.6% of the Massachusetts solar workforce. Manufacturing is the third largest sector (13.9%), followed by sales and distribution (6.0%) and other jobs (3.6%), including positions in research and development, finance, government, nonprofits, and academia. An overwhelming majority of Massachusetts solar firms (69.9%) report working primarily on non-residential solar projects. The residential market segment accounts for approximately one-third (29.2%) of employment. Only 1% or so of workers primarily work on utility-scale solar PV projects. This distribution of employment is in line with trends in state market activity; the non-residential market segment has long accounted for the majority of new annual installed capacity, with residential projects representing a growing share (and utility-scale a falling share) of each year s capacity additions. 6

Massachusetts Solar Workforce Massachusetts Overall Employment 19 U.S. Solar Workforce Women 22.4% 48.7% 23.8% African-American 1.9% 6.7% 5.1% Asian or Pacific Islander 4.2% 6.7% 8.6% Latino or Hispanic 3.8% 8.5% 11.3% Older Workers (55+) 13.4% 24.2% 18.6% Union Members 0.0% - 5.5% Veterans of the U.S. Armed Forces 4.5% 4.9% 8.1% The Massachusetts solar workforce is less diverse than both the state s workforce as a whole and the solar industry nationwide. Every demographic group studied is represented at lower rates in the Massachusetts solar workforce. Some of the largest deviations from state overall workforce and national solar workforce trends are in employment rates of African-Americans (1.9% of the state solar workforce, compared with 6.7% of the overall Massachusetts workforce and 5.2% of the national solar workforce), Latino/Hispanic workers (3.8% of the state solar workforce, versus 8.5% overall in Massachusetts and 11.3% of U.S. solar workers), Asian or Pacific Islanders, and Veterans. Veterans of the U.S. Armed Forces represent a uniquely valuable source of human capital for solar employers. With a proven work ethic and practiced discipline, veterans bring a wealth of readily transferable skills and leadership acumen to the industry. Through the Solar Ready Vets program, the U.S. Department of Energy is helping the industry capitalize on this resource by facilitating the transition from military service to employment in the civilian solar workforce. 20 Massachusetts solar firms have yet to take advantage of this value proposition to the same extent as their counterparts across the country, with veterans comprising only 4.5% of the state s solar workforce, compared to 4.9% of the state s workforce as a whole and 8.1% of the solar workforce nationally. 7

Position Massachusetts New England Division Median Wage U.S. Median Wage Solar Installer - $23.00 $21.00 Solar Sales Representative Solar System Designer Solar Assembly Worker - $24.04 $28.85 $26.02 $25.00 $26.92 - - $18.00 Little statistically significant state-specific wage data was obtained through the 2015 survey effort. The survey did reveal, however, that solar system designers in Massachusetts receive a higher median wage than their peers across the states comprising the U.S. Census Bureau s New England Division (though less than those nationwide). New England solar installers generally receive a higher wage than installers at the national level, though sales representatives in the region are paid less than the national median for the position. Solar employers in Massachusetts experience a similar level of difficulty on average finding qualified candidates to fill openings on their payrolls than other solar firms across the country. These companies also have a slightly easier time finding and recruiting new talent than their peers in the region. Though employers in Massachusetts, New England, and at the national level have similar levels of difficulty hiring overall, far fewer Massachusetts solar companies indicated finding new staff was very difficult (17.9%) compared with their regional and national peers (25.0% and 24.2%, respectively). Difficulty Hiring in Massachusetts Massachusetts 23.9% 58.2% 17.9% New England 23.1% 51.9% 25.0% National 24.2% 51.7% 24.2% 0% 20% 40% 60% 80% 100% Not Difficult Somewhat Difficult Very Difficult 8

Just under 54% of Massachusetts solar firms reported that they receive all of their revenues from solar activities, which is higher than the national average of 48.2%, while 19.6% reported that they receive less than half of their revenues from solar activities, compared to 28.5% nationally. A smaller portion of the state s solar firms (56.1%) work primarily with in-state customers than solar firms nationally (65.6%). A larger portion (34.6%) work primarily with customers in the United States but not in a bordering state than do solar firms nationally (27.0%). As part of the 2015 Census effort, employers were asked about the impacts of specific existing, pending and proposed policies on their business prospects. Massachusetts employers overwhelmingly cite the federal investment tax credit (ITC) as substantially contributing to their firms success, with 67.5% of respondents referring to it directly, much more than the 52.1% who pointed to this policy at the national level. Renewable portfolio standards were the second most popular response by both state and national respondents although nearly 70% more solar firms in Massachusetts cited this policy than those nationwide. Massachusetts solar companies also see more potential impact from the EPA Clean Power Plan than other tax incentives or state or utility rebate programs. The following pages include detailed breakdowns of workforce data by sector. While there are a number of Massachusetts solar firms focused on manufacturing, these firms responded to the survey in insufficient numbers to provide statistically significant data for that sector. Businesses Citing Policies Contributing to Success Investment Tax Credit (ITC) State Renewable Portfolio Standard (RPS) EPA Clean Power Plan Other Tax Exemptions, Credits, & Rebates SRECs/ Solar Carve-Outs Utility Rebates Grants and Loans Net Metering 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Massachusetts National 9

Sector Jobs 8,741 Percent of Solar Workfoce 57.9% INSTALLATION The installation sector is the largest sector of the U.S. solar industry and is composed of companies that primarily install PV, solar water heating, and other solar energy technologies. Establishments 1,171 Solar Installer Median Wage $23/hr The installation sector is the largest sector of both the U.S. and Massachusetts solar industries and is composed of companies that primarily install PV, solar water heating, and other solar energy technologies. This sector is responsible for 57.9% of all solar employment in Massachusetts, employing 8,741 workers at 1,171 business establishments across the state. Massachusetts installation firms report significantly greater levels of difficulty finding qualified candidates to fill openings on their payrolls than firms in other sectors of the state s solar industry, as well as other firms in the installation sector nationwide. Though a similar proportion of installation firms in the state found it very difficult to identify and recruit new employees in 2015 than their peers at the national level, 70% of Massachusetts installers found it somewhat difficult to hire new staff, compared with only 54.2% nationwide. 10

Installation Sector - Difficulty Hiring MA Installation 5.0% 70.0% 25.0% U.S. Installation 19.7% 54.2% 26.0% 0% 20% 40% 60% 80% 100% Not Difficult Somewhat Difficult Very Difficult A smaller percentage of Massachusetts installation firms (75.0%) work primarily with in-state customers than their counterparts in the installation sector nationwide (81.5%). Just over 60% of installation firms in the state are pure play solar businesses, receiving 100% of their revenue from solar activities. However, only approximately 10% of Massachusetts solar installation firms derive less than half of their income from solar activities, compared with nearly 19% at the national level. Installation Sector - % Revenues from Solar MA Installation 10.7% 28.6% Pure Plays, 60.7% U.S. Installation 11.7% 7.2% 22.1% Pure Plays, 59.0% 0% 20% 40% 60% 80% 100% 1-24% 25-49% 50-99% Pure Plays 11

Sector Jobs 901 SALES & DISTRIBUTION Percent of Solar Workfoce 6.0% Establishments 189 Solar Sales Representative Median Wage $24.04/hr Sales & distribution firms primarily sell (but not install) solar goods and services to customers and/or warehouse and distribute solar goods to/ for installers. The sales and distribution sector is responsible for only a small portion of the Massachusetts solar workforce, accounting for just over 900 solar workers at 189 business establishments. Employers at sales and distribution firms report having significantly less difficulty hiring new staff than their counterparts nationwide. A full third of companies in this sector found it not difficult to identify and recruit new employees in 2015, compared with just under one-quarter at sales and distribution firms at the national level. 12

Sales & Distribution Sector - Difficulty Hiring MA Sales & Distribution 33.3% 50.0% 16.7% U.S. Sales & Distribution 24.7% 51.9% 23.4% 0% 20% 40% 60% 80% 100% Not Difficult Somewhat Difficult Very Difficult A similar percentage of Massachusetts sales and distribution companies (61.1%) work primarily with in-state customers, as compared with their counterparts in the sector nationwide (64.7%). A significantly greater percentage of sales and distribution firms in the state are pure play solar businesses, receiving 100% of their revenue from solar activities, than was observed in this sector at the national level. Sales & Distribution Sector - % Revenues from Solar MA Sales & Distribution 11.8% 23.5% Pure Plays, 64.7% U.S. Sales & Distribution 11.7% 7.8% 27.6% Pure Plays, 52.9% 0% 20% 40% 60% 80% 100% 1-24% 25-49% 50-99% Pure Plays 13

Sector Jobs 2,811 Percent of Solar Workfoce 18.6% Establishments 194 Solar System Designer Median Wage $26.02/hr PROJECT DEVELOPMENT The project development sector includes companies that plan, design and build large commercial- and utility-scale solar projects. Businesses in this sector are the secondlargest employers of solar workers in the state (behind installation firms), accounting for 18.6% of the state solar workforce approximately 2,800 solar workers at nearly 200 business establishments throughout Massachusetts. Massachusetts project developers report greater levels of difficulty finding qualified candidates to fill openings on their payrolls than many firms on average across the state s solar industry more broadly (with the exception of the installation sector). Employers at state firms also reported much greater difficulty in identifying and recruiting new staff than their peers at the national level. Approximately 89% of Massachusetts firms in this sector reported finding it either very difficult or somewhat difficult to hire qualified new staff, compared with just under 79% of project development firms at the national level. 14

Project Development Sector - Difficulty Hiring MA Project Development 11.1% 63.0% 25.9% U.S. Project Development 21.4% 54.1% 24.5% 0% 20% 40% 60% 80% 100% Not Difficult Somewhat Difficult Very Difficult A slightly smaller percentage of Massachusetts project development firms (72.2%) work primarily with in-state customers than their counterparts in the project development sector nationwide (74.9%). The incidence of project development firms that are pure play solar businesses (receiving 100% of their revenue from solar activities), is similar in Massachusetts (55.6% of firms) as that seen at the national level (54.6%). Project Development Sector - % Revenues from Solar MA Project Development 11.1% 5.6% 27.8% Pure Plays, 55.6% U.S. Project Development 14.5% 7.8% 23.1% Pure Plays, 54.6% 0% 20% 40% 60% 80% 100% 1-24% 25-49% 50-99% Pure Plays 15

Sector Jobs 544 OTHER Percent of Solar Workforce 3.6% Other firms active in solar are primarily research and development firms, nonprofits, government agencies, academic research centers, etc. This sector employed 544 solar workers in Massachusetts in 2015 at 338 business establishments. Establishments Compared with their peers at the national level, Other firms in Massachusetts experience far less difficulty in hiring new talent. Just over 40% of Massachusetts firms in this sector cited hiring was not difficult, compared with less than 30% giving the same response nationwide. 338 16

"Other" Sector - Difficulty Hiring MA "Other" 40.9% 50.0% 9.1% U.S. "Other" 27.9% 53.5% 18.6% 0% 20% 40% 60% 80% 100% Not Difficult Somewhat Difficult Very Difficult Approximately half (48.8%) of companies in this sector primarily serve in-state clients, compared with the national average for Other companies of 54.5%. A larger percentage of Massachusetts Other firms generate a majority of their revenues from solar compared with similar firms nationwide. "Other" Sector - % Revenues from Solar MA "Other" 7.7% 17.9% 25.6% Pure Plays, 48.7% U.S. "Other" 23.4% 10.1% 24.3% Pure Plays, 42.2% 0% 20% 40% 60% 80% 100% 1-24% 25-49% 50-99% Pure Plays 17

CONCLUSION Despite the effect of current policy challenges on the nonresidential market segment, the overall outlook for the Massachusetts solar industry and its workforce remains positive. Though total annual installed capacity across all market segments is expected to have fallen year-overyear in 2015, current projections show new 2016 capacity exceeding both that installed last year and in 2014, putting the industry back on a positive growth trajectory. This optimistic outlook is shared by employers throughout the state. By the end of 2016, Massachusetts solar employers expect solar workforce to expand by 8.6%. Though anticipated growth is positive, this rate is much lower than the 14.7% growth expected at the national level over the same period, perhaps owing to the aforementioned state policy challenges. Should the Massachusetts solar industry achieve its projected growth, it would result in the addition of nearly 1,300 solar workers, increasing the state solar employment total to just under 16,400. In order to sustain this future growth, it is essential that Massachusetts employers have ready access to quality talent and skilled labor or enhance their on-the-job training offerings. To achieve this, more focused and comprehensive solar training efforts in-house, in-state, and across the country must be sufficiently emphasized. These efforts would reduce the industry s talent acquisition, training, and retention costs, increasing efficiency across the solar value chain, and ultimately reducing costs for Massachusetts solar customers. This research shows that the Massachusetts solar industry is a source of economic opportunity, with the potential to create jobs that pay living wages and are largely available to individuals of different backgrounds from across the state. Only regular reexaminations of the state s solar industry, its workforce, and the employment opportunities presented herein will confirm this potential is realized in years to come. Photo courtesy of Green Mountain Power 18

APPENDIX STATE CENSUS METHODOLOGY AND DATA SOURCES The Solar Jobs Census methodology is the most closely aligned with the Bureau of Labor Statistics (BLS) methodology for its Quarterly Census of Employment and Wages (QCEW) and Current Employment Statistics (CES). Like BLS, this study uses survey questionnaires and employer-reported data, though ours are administered by phone and web, as opposed to mail. Also like BLS, we develop a hierarchy of various categories that represent solar value chain activities (within their broader NAICS framework), develop representative sample frames, and use statistical analysis and extrapolation in a very similar manner to BLS. We also constrain our universe of establishments by relying on the most recent data from the BLS or the state departments of labor, depending on which is collected most recently. We believe that the categories that we have developed could be readily adopted by BLS should it choose to begin to quantify solar employment in its QCEW and CES series. The results from the overall 2015 Census effort are based on rigorous survey efforts that include 287,962 telephone calls and over 44,220 emails to known and potential energy establishments across the United States, resulting in a total of 2,350 full completions for solar establishments in the U.S. Unlike economic impact models that generate employment estimates based on economic data or jobs-per-megawatt (or jobs-perdollar) assumptions, the Solar Jobs Census series provides statistically valid and current data gathered from actual employers. The survey was administered to a known universe of energy employers that includes 68,494 establishments and is derived from the Solar Energy Industry Association s National Solar Database, as well as other public and private sources. Of these establishments, 2,118 identified as solar and completed full or substantially completed surveys. The survey was also administered to a stratified, clustered, random sampling from various industries that are potentially energy-related (unknown universe) that include a total of approximately 314,000 establishments nationwide. After an extensive cleaning and de-duplication process, a sampling plan was developed that gathered information on the level of solar activity (including none) from 12,765 establishments. Of these, 327 establishments qualified as solar establishments and completed full surveys. The sampling rigor in the known and unknown universes provides a margin of error for establishment counts at +/-0.85% and employment at +/-1.99% at a 95% confidence interval. This level of national sampling rigor is mirrored at the state level. In addition to the known Census, the clustered sampling in the unknown universe is representative relative to establishment totals by size in each of the 50 states and the District of Columbia. This ensures that each state s employment estimates are accurate with a maximum margin of error under +/-5% at a 95% confidence interval. Due to the number of qualifying responses, some smaller states have higher margins of error for non-employment related questions, such as workforce and policy related questions, due to the small universe of solar establishments in each state. As a result, some state-level, non-employment data is reported using regional averages or have footnotes denoting small response sizes. 19

GEOGRAPHIC REPRESENTATION OF DATA In addition to the statewide results detailed herein, the Solar Jobs Census 2015 effort compiled comprehensive information about the distribution of solar workers across each state. The Solar Jobs Census 2015 companion website, SolarStates.org, houses solar jobs data for each state and the District of Columbia. Here, the employment data have been broken out and represented in map form at the state, federal congressional district, state legislative district, metropolitan statistical area, and county levels. What follows are tables presenting the employment counts and demographic breakdowns of the workforce at each specified level of granularity previously mentioned. District Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 1 1,665 378 34 69 60 210-86 2 1,126 256 23 47 40 142-58 3 1,554 345 29 66 61 214-66 4 1,896 421 35 81 75 262-80 5 1,984 441 37 84 78 274-84 6 1,822 405 34 77 72 251-77 7 1,349 300 25 57 53 186-57 8 1,752 389 32 74 69 242-74 9 1,948 443 40 81 70 246-101 District MASSACHUSETTS FEDERAL CONGRESSIONAL DISTRICTS Total Employment MASSACHUSETTS STATE SENATE Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 1 356 79 7 15 14 49-15 2 326 72 6 14 13 45-14 3 394 89 8 16 14 50-20 4 470 107 10 19 17 59-24 5 340 77 7 14 12 43-18 6 448 102 9 19 16 57-23 7 219 50 4 9 8 28-11 8 176 40 4 7 6 22-9 9 264 60 5 11 9 33-14 10 328 74 7 14 12 41-17 11 151 34 3 6 5 19-8 12 149 34 3 6 5 19-8 13 215 48 4 9 8 30-9 20

14 824 183 15 35 32 114-35 15 570 127 11 24 22 79-24 16 652 145 12 28 26 90-27 17 408 91 8 17 16 56-17 18 362 80 7 15 14 50-15 19 398 88 7 17 16 55-17 20 527 117 10 22 21 73-22 21 437 97 8 19 17 60-18 22 165 37 3 7 7 23-7 23 688 153 13 29 27 95-29 24 247 55 5 10 10 34-10 25 251 56 5 11 10 35-11 26 563 125 10 24 22 78-24 27 896 199 17 38 35 124-38 28 86 19 2 4 3 12-4 29 310 69 6 13 12 43-13 30 213 47 4 9 8 29-9 31 230 51 4 10 9 32-10 32 400 89 7 17 16 55-17 33 423 94 8 18 17 58-18 34 267 59 5 11 11 37-11 35 166 37 3 7 7 23-7 36 367 82 7 16 14 51-15 37 434 99 9 18 16 55-22 38 228 52 5 9 8 29-12 39 470 107 10 19 17 59-24 40 675 153 14 28 24 85-35 District MASSACHUSETTS STATE HOUSE OF REPRESENTATIVES Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 1st Barnstable 385 88 8 16 14 49-20 2nd Barnstable 64 15 1 3 2 8-3 3rd Barnstable 145 33 3 6 5 18-7 4th Barnstable 98 22 2 4 4 12-5 5th Barnstable 194 43 4 8 8 27-8 Barnstable, Dukes & Nantucket 192 44 4 8 7 24-10 1st Berkshire 237 54 5 10 8 30-12 2nd Berkshire 204 46 4 8 7 26-11 3rd Berkshire 0 0 0 0 0 0-0 21

District Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 4th Berkshire 115 26 2 5 4 15-6 1st Bristol 108 24 2 4 4 14-6 2nd Bristol 83 19 2 3 3 10-4 3rd Bristol 209 47 4 9 8 26-11 4th Bristol 81 18 2 3 3 10-4 5th Bristol 24 5 0 1 1 3-1 6th Bristol 308 70 6 13 11 39-16 7th Bristol 13 3 0 1 0 2-1 8th Bristol 119 27 2 5 4 15-6 9th Bristol 94 21 2 4 3 12-5 10th Bristol 73 16 1 3 3 10-3 11th Bristol 19 4 0 1 1 2-1 12th Bristol 73 16 1 3 3 10-3 13th Bristol 11 3 0 0 0 1-1 14th Bristol 48 11 1 2 2 6-2 1st Essex 131 29 2 6 5 18-6 2nd Essex 139 31 3 6 5 19-6 3rd Essex 16 4 0 1 1 2-1 4th Essex 66 15 1 3 3 9-3 5th Essex 92 21 2 4 4 13-4 6th Essex 83 18 2 4 3 11-3 7th Essex 126 28 2 5 5 17-5 8th Essex 71 16 1 3 3 10-3 9th Essex 162 36 3 7 6 22-7 10th Essex 42 9 1 2 2 6-2 11th Essex 1 0 0 0 0 0-0 12th Essex 96 21 2 4 4 13-4 13th Essex 124 27 2 5 5 17-5 14th Essex 232 51 4 10 9 32-10 15th Essex 0 0 0 0 0 0-0 16th Essex 23 5 0 1 1 3-1 17th Essex 130 29 2 6 5 18-5 18th Essex 64 14 1 3 3 9-3 1st Franklin 135 31 3 6 5 17-7 2nd Franklin 70 16 1 3 3 9-4 1st Hampden 107 24 2 4 4 14-6 2nd Hampden 108 24 2 4 4 14-6 3rd Hampden 164 37 3 7 6 21-8 4th Hampden 105 24 2 4 4 13-5 5th Hampden 59 13 1 2 2 7-3 22

District Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 6th Hampden 157 36 3 6 6 20-8 7th Hampden 84 19 2 3 3 11-4 8th Hampden 1 0 0 0 0 0-0 9th Hampden 25 6 1 1 1 3-1 10th Hampden 168 38 3 7 6 21-9 11th Hampden 0 0 0 0 0 0-0 12th Hampden 0 0 0 0 0 0-0 1st Hampshire 147 33 3 6 5 19-8 2nd Hampshire 54 12 1 2 2 7-3 3rd Hampshire 9 2 0 0 0 1-0 1st Middlesex 78 17 1 3 3 11-3 2nd Middlesex 152 34 3 6 6 21-6 3rd Middlesex 94 21 2 4 4 13-4 4th Middlesex 499 111 9 21 20 69-21 5th Middlesex 204 45 4 9 8 28-9 6th Middlesex 87 19 2 4 3 12-4 7th Middlesex 73 16 1 3 3 10-3 8th Middlesex 207 46 4 9 8 29-9 9th Middlesex 377 84 7 16 15 52-16 10th Middlesex 115 26 2 5 5 16-5 11th Middlesex 175 39 3 7 7 24-7 12th Middlesex 9 2 0 0 0 1-0 13th Middlesex 41 9 1 2 2 6-2 14th Middlesex 117 26 2 5 5 16-5 15th Middlesex 269 60 5 11 11 37-11 16th Middlesex 79 18 1 3 3 11-3 17th Middlesex 29 7 1 1 1 4-1 18th Middlesex 0 0 0 0 0 0-0 19th Middlesex 281 62 5 12 11 39-12 20th Middlesex 87 19 2 4 3 12-4 21st Middlesex 134 30 2 6 5 19-6 22nd Middlesex 53 12 1 2 2 7-2 23rd Middlesex 287 64 5 12 11 40-12 24th Middlesex 188 42 3 8 7 26-8 25th Middlesex 109 24 2 5 4 15-5 26th Middlesex 193 43 4 8 8 27-8 27th Middlesex 23 5 0 1 1 3-1 28th Middlesex 80 18 1 3 3 11-3 29th Middlesex 0 0 0 0 0 0-0 30th Middlesex 36 8 1 2 1 5-2 23

District Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 31st Middlesex 42 9 1 2 2 6-2 32nd Middlesex 36 8 1 2 1 5-2 33rd Middlesex 0 0 0 0 0 0-0 34th Middlesex 0 0 0 0 0 0-0 35th Middlesex 0 0 0 0 0 0-0 36th Middlesex 74 16 1 3 3 10-3 37th Middlesex 88 20 2 4 3 11-5 1st Norfolk 215 48 4 9 8 30-9 2nd Norfolk 0 0 0 0 0 0-0 3rd Norfolk 103 23 2 4 4 14-4 4th Norfolk 50 11 1 2 2 7-2 5th Norfolk 96 21 2 4 4 13-4 6th Norfolk 144 32 3 6 6 20-6 7th Norfolk 0 0 0 0 0 0-0 8th Norfolk 59 13 1 2 2 8-2 9th Norfolk 87 19 2 4 3 12-4 10th Norfolk 81 18 2 3 3 11-3 11th Norfolk 110 24 2 5 4 15-5 12th Norfolk 71 16 1 3 3 10-3 13th Norfolk 100 22 2 4 4 14-4 14th Norfolk 135 30 2 6 5 19-6 15th Norfolk 93 21 2 4 4 13-4 1st Plymouth 1 0 0 0 0 0-0 2nd Plymouth 39 9 1 2 2 5-2 3rd Plymouth 61 14 1 3 2 8-3 4th Plymouth 46 10 1 2 2 6-2 5th Plymouth 270 60 5 11 11 37-11 6th Plymouth 68 15 1 3 3 9-3 7th Plymouth 54 12 1 2 2 7-2 8th Plymouth 50 11 1 2 2 7-2 9th Plymouth 101 22 2 4 4 14-4 10th Plymouth 26 6 0 1 1 4-1 11th Plymouth 0 0 0 0 0 0-0 12th Plymouth 41 9 1 2 2 6-2 1st Suffolk 73 16 1 3 3 10-3 2nd Suffolk 92 21 2 4 4 13-4 3rd Suffolk 1338 297 25 57 53 185-56 4th Suffolk 89 20 2 4 4 12-4 5th Suffolk 58 13 1 2 2 8-2 6th Suffolk 101 22 2 4 4 14-4 24

District Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 7th Suffolk 26 6 0 1 1 4-1 8th Suffolk 0 0 0 0 0 0-0 9th Suffolk 37 8 1 2 1 5-2 10th Suffolk 27 6 1 1 1 4-1 11th Suffolk 0 0 0 0 0 0-0 12th Suffolk 0 0 0 0 0 0-0 13th Suffolk 0 0 0 0 0 0-0 14th Suffolk 0 0 0 0 0 0-0 15th Suffolk 0 0 0 0 0 0-0 16th Suffolk 0 0 0 0 0 0-0 17th Suffolk 79 18 1 3 3 11-3 18th Suffolk 1 0 0 0 0 0-0 19th Suffolk 0 0 0 0 0 0-0 1st Worcester 59 13 1 2 2 7-3 2nd Worcester 56 13 1 2 2 7-3 3rd Worcester 17 4 0 1 1 2-1 4th Worcester 0 0 0 0 0 0-0 5th Worcester 97 22 2 4 3 12-5 6th Worcester 38 9 1 2 1 5-2 7th Worcester 40 9 1 2 1 5-2 8th Worcester 92 21 2 4 3 12-5 9th Worcester 63 14 1 3 2 8-3 10th Worcester 78 18 2 3 3 10-4 11th Worcester 15 3 0 1 1 2-1 12th Worcester 35 8 1 1 1 4-2 13th Worcester 73 17 2 3 3 9-4 14th Worcester 92 21 2 4 3 12-5 15th Worcester 11 2 0 0 0 1-1 16th Worcester 81 18 2 3 3 10-4 17th Worcester 15 3 0 1 1 2-1 18th Worcester 8 2 0 0 0 1-0 25

Metropolitan Statistical Area Barnstable Town, MA Boston- Cabridge- Quincy, MA-NH MA NONMETRO- POLITAN AREA Total Employment Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces 847 192 17 35 30 107-44 9,988 2,217 185 424 395 1,381-419 127 29 3 5 5 16-7 Pittsfield, MA 365 83 7 15 13 46-19 Providence-New Bedford-Fall River, RI-MA 1,121 255 23 46 40 142-58 Springfield, MA 1,555 353 32 64 56 197-80 Worcester, MA 1,092 248 22 45 39 138-56 County MASSACHUSETTS METROPOLITAN STATISTICAL AREAS Total Employment MASSACHUSETTS COUNTIES Women African- American Asian or Pacific Islanders Latino or Hispanic Older Workers (55+) Union Members Veterans of the US Armed Forces Barnstable 847 192 17 35 30 107-44 Berkshire 365 83 7 15 13 46-19 Bristol 1,121 255 23 46 40 142-58 Dukes 80 18 2 3 3 10-4 Essex 1,455 323 27 62 58 201-61 Franklin 264 60 5 11 9 33-14 Hampden 974 221 20 40 35 123-50 Hampshire 318 72 7 13 11 40-16 Middlesex 4,212 935 78 179 166 582-177 Nantucket 47 11 1 2 2 6-2 Norfolk 1,367 303 25 58 54 189-57 Plymouth 1,014 225 19 43 40 140-43 Suffolk 1,937 430 36 82 77 268-81 Worcester 1,095 249 22 45 39 138-56 26

ENDNOTES 1. SEIA/GTM Research Solar Market Insight Q3 2015 2. Id. 3. The residential, non-residential, and utility-scale market segments are defined by SEIA based on the offtaker of the electricity their systems generate, though they can generally be used interchangeably with small-scale (i.e. single-family household rooftop systems, no more than a handful of kilowatts), medium-scale (i.e. multi-unit, commercial, or government rooftop system), and large-scale (i.e. ground-mounted or very large rooftop systems ranging from several hundred kilowatts to several hundred megawatts in capacity). 4. The 2014 estimate of solar employment in Massachusetts was produced using a carefully developed dual methodology one for installation and construction jobs and another for non-installation jobs (covering industry sectors such as manufacturing, sales & distribution, project development, and other occupations that support the solar industry). Method one used labor intensity multipliers developed internally and cross-checked with leading studies on the subject, while method two was based not only on a direct count of solar workers, but also the average number of jobs per solar establishment and total number of establishments in the state. It is also important to note that while the 2014 and 2015 methodologies differ, the results derived from the Census approach are statistically significant and, therefore, more credible. Details on the methodology can be found on page 19. 5. It is important to note that these projections were based on employer-reported hiring plans for 2016 that may have since changed in light of the extension of the federal investment tax credit in December of 2015. 6. National Renewable Energy Laboratory. PV Watts Calculator. http://pvwatts.nrel.gov/pvwatts.php 7. EIA year-to-date Average Price of Electricity to Ultimate Customers by End-Use Sector, by State for all sectors, Sept. 30, 2015. 8. SEIA/GTM Research Solar Market Insight Q3 2015 9. NC Clean Energy Technology Center, Database of State Incentives for Renewables & Efficiency, http://programs. dsireusa.org/system/program/detail/479 10. NC Clean Energy Technology Center, Database of State Incentives for Renewables & Efficiency, http://programs. dsireusa.org/system/program/detail/5679 11. Massachusetts System of Assurance of Net Metering Eligibility. Provisional Application Activity and Remaining Capacity. Retrieved February 1, 2016 from https://app.massaca.org/allocationreport/report.aspx 12. Lacey, S. (2015, November 19). Failure to Reach Net Metering Deal Could Kill 100MW of Commercial Solar in Mass. Next Year. Retrieved February 1, 2016 from http://www.greentechmedia.com/articles/read/failedcompromise-on-net-metering-in-massachusetts 13. Net Metering. 220 CMR 18.07(5) 14. NC Clean Energy Technology Center, Database of State Incentives for Renewables & Efficiency, http://programs. dsireusa.org/system/program/detail/5679 15. SEIA/GTM Research Solar Market Insight Q3 2015 16. Massachusetts Clean Energy Center. Solarize Mass. Retrieved February 1, 2016 from http://www.masscec.com/ get-clean-energy/residential/solarize-mass 17. SEIA/GTM Research Solar Market Insight Q3 2015 18. Id. 19. U.S. Bureau of Labor Statistics, Employment status of the civilian noninstitutional population by state 2014 Annual Averages and Employment status of veterans 18 years and over by state 2014 Annual Averages. Found at: http://www.bls.gov/ 20. See, U.S. Department of Energy Solar Ready Vets. Available at: http://energy.gov/eere/sunshot/solar-readyvets 21. U.S Census Bureau, Geographic Terms and Concepts - Census Divisions and Census Regions. Found at: https:// www.census.gov/geo/reference/gtc/gtc_census_divreg.html COPYRIGHT NOTICE Unless otherwise noted, all design, text, graphics, and the selection and arrangement thereof are Copyright February 2016 by The Solar Foundation and BW Research Partnership. ALL RIGHTS RESERVED. Any use of materials in this report, including reproduction, modification, distribution, or republication, without the prior written consent of The Solar Foundation and BW Research Partnership, is strictly prohibited. For questions about this report, please contact Andrea Luecke at The Solar Foundation, aluecke@solarfound.org. The Solar Foundation is a 501(c)(3) nonprofit and relies on public support. To learn more about supporting The Solar Foundation s work, go to www.thesolarfoundation.org/donate/

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