Economic Impact
Clean Energy Gross State Product
The clean energy industry contributed $15.9 billion, or roughly 2%, to the Commonwealth’s Gross State Product (GSP) in 2023.1 The industry’s GSP increased by 74% from 2012-2023. This outpaces overall growth in Massachusetts GSP, which grew by 52% over the same time. Clean energy GSP increased by 7% between 2022 and 2023, compared to an industry such as Retail Trade, which grew by only 4% during the same time.
Massachusetts clean energy Gross State Product increased by over $1 billion between 2022 and 2023.
Clean Energy Gross State Product by Value Chain
The contribution to the Massachusetts clean energy GSP by the Sales & Distribution sector grew by 21%, and Professional Services grew by 18% between 2022 and 2023.2
The Manufacturing sector continues to account for the largest contribution to clean energy GSP, at 23%, or $3.6B.
The Manufacturing sector continues to account for the largest contribution to clean energy GSP, at 23%, or $3.6B.
The Manufacturing value chain segment was the largest. contributor to the $15.9 billion in Massachusetts clean energy GSP in 2023.
Economic Contribution Analysis
December 2023
Economic Contribution Analysis
December 2023
For the purpose of this report, only those workers who directly support clean energy activities, such as conducting research, manufacturing products, performing installations, or repairing and maintaining clean energy systems, are included as clean energy workers. However, the impact of the industry is significantly greater than these “direct” jobs alone.3
Photo courtesy of Fleet Robotics in Somerville, MA
The clean energy industry has a similar number of direct jobs as the College & University or Scientific Research industries, yet exceeds both industries’ economic contribution in indirect and induced jobs and state GSP.
The Massachusetts Clean Energy Industry is Responsible for a Total Economic Contribution of:
$36.4B
In MA GSP
$2.9B
In state and local taxes
$5.9B
In federal taxes
115,291
DIRECT CLEAN ENERGY JOBS in Massachusetts supported an additional:
43,529
INDIRECT JOBS (those outside of the clean energy sector that provide critical supply chain goods and services)
74,607
INDUCED JOBS (those that result from increased spending in the economy)
233,427
TOTAL
TOTAL
direct, indirect, and
induced jobs
induced jobs
115,291
DIRECT CLEAN ENERGY JOBS in Massachusetts
supported an additional:
supported an additional:
43,529
INDIRECT JOBS (those outside of the clean energy sector that provide critical supply chain goods and services)
74,607
INDUCED JOBS (those that result from increased spending in the economy)
233,427 TOTAL
direct, indirect, and induced jobs
1 2023 data is the most recent available. The clean energy GSP was derived from survey incidence rates and proportional revenue reporting, together with existing data from the Bureau of Economic Analysis, calculated by NAICS code. Utility data and state government spending were included as direct inputs. Industry data from JobsEq, 2024.
2 2023 data is the most recent available. The clean energy GSP was derived from survey incidence rates and proportional revenue reporting, together with existing data from the Bureau of Economic Analysis, calculated by NAICS code. Utility data and state government spending were included as direct inputs.
3 The economic contribution analysis in this report was calculated using IMPLAN modeling software. The study area was set as the State of Massachusetts, and the event year was set to 2022 since 2023 IMPLAN data was not yet available.
