What are the economic impacts of energy storage on local communities

Energy storage has significant and multifaceted economic impacts on local communities, driven primarily by job creation, investment, cost savings, and environmental improvements. These impacts unfold across several dimensions:

Job Creation and Workforce Development

Energy storage projects spur direct employment opportunities in manufacturing, construction, operation, and maintenance of battery storage systems. For example, large-scale battery factories can create thousands of jobs; the American Battery Factory project is expected to generate 1,000 jobs and a $3.1 billion economic impact in Pima County over a decade, while KORE Power’s lithium-ion battery facility plans to create 3,000 permanent jobs in Maricopa County, Arizona. Nationally, the energy storage industry supports over 72,000 jobs and is growing rapidly, with 10,000 new jobs announced recently. These jobs often provide good wages and contribute to local economic revitalization, especially in regions transitioning away from fossil fuels.

Investment and Economic Growth

Energy storage facilities attract billions in capital investment to local economies. Current U.S. grid-scale projects represent around $21 billion in investment, with an additional $34 billion in the development pipeline. This influx of investment supports local businesses, stimulates supply chains, and enhances economic diversification by fostering clean energy industries. Investments in energy storage also complement local manufacturing and innovation ecosystems, attracting technology companies and researchers.

Energy Cost Savings and Financial Benefits

Energy storage reduces electricity costs for consumers by managing peak demand and enabling more efficient energy use, which lowers utility bills for households and businesses. These savings can improve local spending power and financial stability. For community solar subscribers, who often pair solar with storage, savings come without the need to install equipment themselves, making clean energy more affordable and accessible. Additionally, storage helps utilities avoid costly emergency measures and environmental compliance fines, passing on savings to ratepayers.

Tax Revenue and Public Funding

Energy storage projects contribute substantial local tax income and lease payments—over $580 million annually across the U.S.—which funds public services such as schools, libraries, and infrastructure. This steady revenue stream can improve community amenities and resilience.

Environmental and Health Benefits with Economic Spillovers

By enabling the retirement of fossil-fuel power plants, energy storage reduces air pollution and greenhouse gas emissions, leading to better public health outcomes, especially in disadvantaged communities that often face disproportionate environmental burdens. These environmental improvements contribute indirectly to local economies by reducing healthcare costs and enhancing quality of life.

Community Resilience and Property Value

Energy storage increases community resilience by providing backup power during outages and extreme weather, protecting essential services and reducing economic disruption. For homeowners and businesses deploying storage, increased energy reliability and lower energy costs enhance property values—studies suggest that every dollar saved in utility bills can increase property value by about $20.

Innovation and Economic Diversification

Local economies investing in energy storage benefit from technological advancements that drive innovation in energy management, grid integration, and clean technology sectors. This fosters a more diversified and resilient economic base less dependent on volatile fossil fuel markets.

In summary, energy storage positively impacts local communities by creating high-quality jobs, attracting substantial investment, lowering energy costs, increasing tax revenues, enhancing property values, improving health and environmental conditions, and boosting community resilience and innovation. These benefits position communities for sustainable economic growth aligned with the transition to clean energy.