Clean energy job growth slows in Central Mass.

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By Sam Bonacci

The praises of continued growth in the clean energy sector could be heard from across the state in September, when the Massachusetts Clean Energy Council (MassCEC) reported a gain of more than 8,000 industry jobs this year over 2013.

But buried amid this 10.5 percent jump over was this: Central Massachusetts saw no growth in clean-energy jobs for the first time since the first job numbers were released in 2011. From 2010 to 2013, the region averaged 11.5 percent annual job growth, according to MassCEC.

“It is clear from the … report, as it relates to the clean energy sector, that we need to do a better job here in Central Massachusetts,” said Tim Murray, president and CEO of the Worcester Regional Chamber of Commerce.

The report has provided an important benchmark for the state's clean energy industry, which covers various aspects of conservation, alternative energy and clean transportation, he said. Central Massachusetts' clean energy sector grew from 11,805 jobs in 2011 to 15,518 in 2013. But last year, the region lost 86 jobs, according to MassCEC.

Jeremy McDiarmid, MassCEC's senior director for innovation and industry support, said the organization — which helps promote clean energy in the state — is watching those numbers closely but is not yet concerned about them.

“We have to look at the broader context. It is a growing industry statewide and there are a lot of jobs in Central Massachusetts,” McDiarmid said. “One year of data is something to watch but not worry about.”

There was no indication that one large company in the region had shifted jobs or saw a large decline, he said.

Shifting regulations to blame?

In a possible explanation, James Dumas, principal at Hopkinton-based Solect Energy, pointed to shifting state regulations early this year as having a negative effect on the area's large ground-mounted solar projects. The state's second round of Solar Renewable Energy Certificates, or SRECs, were distributed in April, but many of the larger projects had to be delayed until new certificates were issued, he said. Even then, those projects have fewer incentives than they once had.

“It was a shock to the market,” Dumas said. “You won't see (ground-mounted solar) grow the same way you will see residential and commercial grow, because (the state government has) slowed that and controlled that.”

Also, uncertainty in the ongoing legislative debate over net metering, which makes renewable installations more profitable in Massachusetts by requiring electricity companies to buy power at market — rather than wholesale — rates, could have slowed growth, according to Mark Durrenberger, president of New England Clean Energy in Hudson.

“Uncertainty is always a wrench in growth, so I could see that potentially affecting growth,” he said.

MassCEC's McDiarmid views the flat job growth in Central Massachusetts as part of a normal cyclical movement during a growth period.

“The data is going to be up and down year to year,” he said. As an example, McDiarmid said the Southeast region of the state is now seeing a “balancing out” of jobs just a few years after a net loss. In 2012, that region lost more than 250 jobs, then rebounded with a gain of nearly 6,000 over the last two years.

McDiarmid expects Central Massachusetts to see a similar rebound next year, in line with MassCEC's predicted statewide growth of 13.3 percent.

Murray plans to tap into the area's colleges to help stoke that growth for the Worcester area. It's vital to transition recent graduates into renewable-energy jobs or incubation space where they can create clean-energy businesses, he said, pointing to Worcester's Institute for Environmental Sustainability as an available resource.

“The focus of the chamber will be: How do we bring together that academic research and strengthen ties to the industry and strengthen incubation in that space?” Murray said. “Almost 12,000 jobs are expected to be added in the next 12 months and I think there is an opportunity here … there is no reason why we can't have a piece of that success.”

The executives from New England Clean Energy and Solect Energy, which provide retail and commercial solar throughout Central Massachusetts, see continued growth among their segment of the solar industry.

“My sense is that overall, everything is growing,” said Ken Driscoll, a principal at Solect Energy. “There seems to be a lot of adoption and from what we hear, everything is going well for the competition.”

Bryan Engelhardt, an associate professor of economics and accounting at Worcester's College of the Holy Cross, said that despite volatility in relatively new markets such as renewable energy, the overall growth Massachusetts has experienced in the clean energy sector can be sustained.

“For a growth industry, 10 percent a year for a long time is not unreasonable,” Engelhardt said. “Renewable energy has that potential.”