The clean energy sector has seen substantial growth over the past two decades, and with supportive policies, its expansion could accelerate even further. This growth is driven by direct benefits from energy system improvements, including reduced energy costs, improved reliability, and cleaner air—outcomes achieved by strengthening transmission networks and integrating clean technologies into the grid. However, the broader economic impacts of these projects are also crucial and should be central to discussions and policymaking.
The economic development opportunities of modern energy technologies have not gone unnoticed by elected officials. A bipartisan group of 20 governors referred to the renewable energy industry as “an American success story.” Since 2005, around 250 gigawatts of large-scale wind and solar have been constructed across the U.S., now accounting for approximately 20% of the nation’s total power generation capacity and significantly strengthening state economies.Here are some concrete measures and examples of the economic benefits generated by clean energy and transmission development:
Job creation
At the local level, county officials celebrate hundreds of construction jobs created by new wind or solar farms. A large wind farm in Stillwater County, Montana is slated to employ 150-200 skilled construction workers, along with 10-15 permanent operations staff. Similarly, the high-voltage Southern Spirit Transmission Line is projected to generate over 1,400 jobs in Mississippi during construction and create 160 permanent positions in the state. In states that actively pursue clean energy deployment, sustained project development can build a lasting clean energy sector. In Georgia, where large-scale solar farms have steadily developed over the past decade, the state had a solar workforce of nearly 4,000 by 2018, which has grown to more than 5,600 as of 2023.
The employment impacts of clean energy extend well beyond direct job creation. Developing clean energy projects generates ripple effects across industries, creating jobs directly associated with building the project and stimulating demand for equipment, components, and services from other businesses, leading to additional employment growth in the supply chain. Moreover, workers involved—whether directly or through the supply chain—receive wages that they spend locally on housing, food, and other essentials, benefiting rural businesses. An analysis using the DOE’s Jobs and Economic Development Impact model estimated that a statewide solar farm expansion in Ohio of 2.5 gigawatts would create 6,900 direct full-time equivalent jobs, another 2,200 supply chain jobs, and 3,500 induced jobs from increased spending on local goods and services. Beyond employment and income increases, such analysis can estimate the overall boost to a county or state’s GDP.
Boosting tax revenues
Clean infrastructure projects can provide substantial tax revenue for local and state governments, helping fund essential services like schools, police and fire departments, and road maintenance. For example, a single 52-turbine wind farm in Jay County, Indiana is projected to contribute $18 million in taxes to the county over its lifetime. In Indiana’s White and Tipton Counties, wind farms currently supply approximately 10% of the counties’ total budgets. Transmission lines also yield significant tax payments: the TransWest Express line, spanning across Wyoming, Colorado, Utah, and Nevada, expects to generate over $1 billion in property and sales taxes over its lifetime. These expanded tax bases can play a pivotal role in revitalizing rural communities.
Many states, including Idaho, Minnesota, the Dakotas, and Wyoming, levy taxes on wind and other renewable energy generation. A survey of Minnesota counties revealed that wind production tax revenues are most commonly used for capital improvements, road repair, and tax relief. In 2022 alone, renewable energy projects generated $1.4 billion in state and local taxes. Additionally, community benefit agreements are becoming a popular way for communities hosting infrastructure projects to secure extra benefits, both monetary and non-monetary—such as adding broadband alongside transmission lines—while offering developers greater predictability in permitting processes.
Agriculture benefits from landowner lease payments
Clean energy projects require land, and lease agreements are another form of economic stimulus generated by infrastructure expansion, benefiting farmers, ranchers, and other landowners. Developers offer hundreds or even thousands of dollars per acre for the rights to install solar panels or wind turbines. For instance, a 41-turbine wind farm in Greeley County, Nebraska is expected to pay landowners $27 million over the project’s lifetime. Nationwide, clean energy projects currently pay $1.5 billion in lease payments annually. States with significant wind and solar deployment see tens of millions of dollars or more in lease payments each year—for example, Kansas landowners receive $49 million, North Carolina sees $41 million, and Texas receives $346 million. Lease payments add a stable income stream for rural households, helping to preserve family-owned lands.
Capturing economic benefits
In the 21st century, large wind and solar farms have been built across the U.S., which now make up a big portion of our total electric power capacity. This shift towards clean energy has brought economic development opportunities, including job creation, GDP growth, expanded local tax base, and diversified income streams for farmers and other landowners. Well-designed policies can further enhance these benefits by focusing on workforce training, tax policy, support for effective lease agreements, long-term energy planning to provide investment stability, and fostering community benefit agreements. By embracing clean energy, states can support emissions goals while revitalizing local economies, creating a win-win situation for communities, states, and the nation as a whole.