Arizona stands at a pivotal moment in its economic evolution. As the state transitions from an agricultural economy of the five Cs cattle, citrus copper, cotton, and climate to a clean energy powerhouse, industry leaders gathered recently at the Clean Energy Summit at Arizona State University’s Innovation Center Sky Song to discuss the workforce challenges and opportunities that lie ahead. This distinguished group of panelists – Mike Cruz from Lucid Motors, Caroline Stockdale from First Solar, Lee Campbell from American Panel Solutions, and Dr. John Heckman from Electrify Arizona shared valuable insights on both the tremendous growth potential of Arizona’s skilled workforce along with the pressing challenges facing the clean energy sector. The panel was moderated by Damian Scandiffio, Director of Enterprise Sales from Acara Solutions.  

The Current Landscape: Tight Labor Markets and Explosive Growth 

Arizona’s employment picture tells a story of both opportunity and challenge. With the state’s unemployment rate currently at 3.5%, Arizona maintains one of the tightest labor markets in the nation. The Phoenix metropolitan area has seen remarkable growth, with employment increasing by over 18,000 jobs in the past year alone. Clean Energy jobs are more than 60,000 statewide and the Inflation Reduction Act has propelled $10.57B in new clean energy investments. 

But these positive numbers mask a deeper challenge. As Mike Cruz from Lucid Motors noted during the panel, “Today, we’re lucky to be talking with some individuals that are really on the forefront of needing to improve their access, train their workforce, and build industry awareness.” The reality is that while jobs are plentiful, finding qualified workers for the clean energy sector remains a significant challenge. 

The Scale of Transformation 

The numbers are impressive. Companies like American Panel Solutions have grown from a single employee to over 600 in just two years. Lucid Motors operates with approximately 3,000 employees in Arizona, with plans to add 300-500 more jobs in Phoenix over the next three years. First Solar continues expanding its manufacturing footprint, including new facilities in Louisiana. 

John Heckman from Electrify Arizona provided crucial context for this growth: “APS and SRP both have published resource plans that say in the middle of next decade, there’ll be a 40% increase of current load.” Perhaps even more striking, they noted that “there are 30 times more load booked in the queue for data centers in Arizona than are currently in place.” 

This isn’t just about traditional energy jobs. As Heckman explained, the fundamental shift toward electrification represents a massive efficiency gain. Projecting a Lawrence Livermore energy flow diagram, they showed how two-thirds of America’s energy currently goes to “rejected energy” essentially heat loss from combustion processes. Electrification technologies can capture much more of that energy as useful work. 

Workforce Development: From Subway Sandwiches to Solar 

The workforce challenges facing Arizona’s clean energy sector are complex and multifaceted. As Cruz observed, “Arizona is not an automobile state. It’s not Detroit, Michigan… We literally were taking people from the Subway register line and bringing them on the chassis one line and transforming their education.” 

This transformation required innovative partnerships. Lucid’s collaboration with Central Arizona College created the “Drive 48” program, which has since expanded to serve other high-demand industries including semiconductors, construction, and healthcare. The program recognizes a fundamental shift in the job market: “For the longest time, we’ve told people that the four-year degree is the pathway to success, and what we fail to tell them is that those degrees don’t always mean career opportunities.” 

And Lee Campbell from American Panel Solutions added about realistic job previews, “When we faced the challenge of hiring 500 operators in under three months, we knew we couldn’t just throw bodies at the problem—we had to build a sustainable system. That meant revamping our hiring process with better assessments, training our frontline leaders, and giving candidates a real preview of the work environment. But just as important was showing people that this isn’t just a job—it’s a career. We created clear pathways within the operator role, so employees could see themselves growing into mentors, specialists, or technical experts. And on the technical side, we partnered with community colleges to shape programs that directly feed into our workforce. It’s about building a talent pipeline that starts before day one and keeps people engaged for the long run. With the help of Acara we were able to exceed local hiring objectives.” 

Data-Driven Talent Management 

First Solar’s approach to workforce development offers valuable lessons for companies of all sizes. Caroline Stockdale, Chief People Officer, from First Solar emphasized moving beyond traditional “9- box” talent management tool toward more data-driven approaches that recognize the fundamental differences between job roles and critical skills needed. 

“If you can start to shift towards a more data-driven approach of talent, it can be enormously helpful, because it shifts you from reactive and subjective, more to a proactive, objective, and evidence-based approach,” she explained. 

This approach has yielded impressive results. During the post-COVID talent shortage, when many companies experienced double-digit attrition rates, First Solar’s most critical business areas maintained just 3% attrition. A different approach to learning also helped, creating open access to learning opportunities for all associates rather than for anointed, select “high potential” employees.  

The Education Crisis 

Perhaps the most sobering challenge identified by the panel was the shortage of educators. Cruz painted a stark picture: “We have a shortage of educators, not just in the public K-12 system, but in the technical fields. Right now, our school system is sponsoring and bringing teachers from the Philippines and other countries, because we cannot get teachers in our own communities.” 

This educator shortage threatens the entire talent pipeline. As Cruz noted, “The future of tomorrow’s workforce starts today. We just don’t have the basic foundations.” The problem is particularly acute in rural Arizona, where the teacher shortage is most severe. 

Stockdale added, “Because when you have that open access, and you have people who are able to determine their own future and feel that they have access, they feel valued in terms of being given access to learn, to grow, and to progress.” 

Political Headwinds and Policy Uncertainty 

The clean energy sector’s rapid growth now faces concrete legislative challenges following the passage of major federal legislation. Political uncertainty has been replaced by policy certainty as the “One Big Beautiful Bill Act” was signed into law by President Trump on July 4, 2025, following narrow passage in the Senate by a 51-50 vote with Vice President JD Vance casting the deciding vote. 

The enacted legislation eliminates key tax incentives that have fueled much of the industry’s expansion. The law terminates the $7,500 tax credit for new electric vehicles and the $4,000 credit for used EVs in 2026, while also ending tax breaks for home EV charging equipment installation and energy-efficient heating, cooling, and insulation systems. Additionally, the legislation drastically reduces rooftop solar incentives and implements a full phase-out of solar and wind energy tax credits by 2028—nearly a decade ahead of the original schedule. 

Notably, the law extends incentives to 2036 for hydropower, nuclear, and geothermal energy, which are favored by the Trump administration, creating a clear policy preference for these energy sources over solar and wind. 

These legislative changes now threaten to undermine the sector’s momentum at a time when solar, wind, and battery storage are expected to account for 93% of new U.S. electric capacity this year. Congress has delivered on its promise to repeal clean energy incentives, scoring a major legislative victory by eliminating green energy incentives that Democrats passed in 2022. 

The implications are far-reaching. The newly enacted law guts clean energy tax credits that Democrats approved three years ago. Industry observers warn that the sweeping legislation will effectively eliminate key tax credits that have supported the rapid growth of solar power in the U.S. The solar industry warns the law will result in job losses, higher electricity prices, and reduced generation capacity at a time when demand is growing. 

The Senate’s approach proved even more aggressive than initially proposed, implementing the full phase-out of solar and wind energy tax credits by 2028 while extending preferences for hydropower, nuclear, and geothermal energy through 2036, reflecting the administration’s energy priorities. 

The Arizona Advantage 

Despite these challenges, Arizona maintains several key advantages. The state’s 5% annual power load growth rate is among the highest in the nation, driven by data centers, manufacturing, and population growth. The state’s abundant solar resources and business-friendly environment continue to attract investment. 

Moreover, Arizona’s clean energy companies have demonstrated remarkable resilience and innovation in workforce development. The collaborative approach exemplified by programs like Drive 48 and the partnerships between companies and community colleges provide a model for other states. 

Looking Forward: The Path to Sustainable Growth 

The discussions revealed several key strategies for sustaining Arizona’s clean energy workforce development: 

• Community Partnerships: Every successful company emphasized the importance of working with local educational institutions, from K-12 schools to community colleges and universities. 
• Open Access Training: First Solar’s approach to providing learning opportunities to all employees, rather than just “high potentials,” has proven effective in both retention and development. 
• Data-Driven Approaches: Moving beyond subjective talent evaluation toward objective, skills-based assessment helps companies better understand and develop their workforce. 
• Industry Collaboration: Sharing resources and best practices, as demonstrated by the Power 48 initiative, can help smaller companies access the support they need. 
• Specialized Recruiting Partners: Companies like American Panel have successfully augmented their internal HR capabilities by partnering with clean energy-focused recruiting firms such as Acara Solutions. This strategic outsourcing approach enables organizations to scale their hiring capabilities across all levels—from line operators and technicians to engineers and senior management—while leveraging specialized industry expertise and established talent networks that internal teams may lack. 

The Stakes Are High 

As Heckman noted, everyone in the clean energy sector needs to become “electrification evangelists.” The transformation underway in Arizona represents more than just economic opportunity, it’s about creating a more efficient, sustainable energy system that can support continued growth while reducing environmental impact. 

The workforce challenges are real and significant. The political headwinds are concerning. But Arizona’s clean energy sector has demonstrated remarkable innovation and resilience. Success will require continued collaboration between industry, education, and government, along with a commitment to investing in people and communities. 

The companies profiled in this discussion are writing the playbook for clean energy workforce development. Their experiences offer valuable lessons for other states and regions looking to build their own clean energy economies. 

As Arizona navigates this transition, the state’s ability to develop and retain a skilled workforce will determine whether it can maintain its position as a clean energy leader or see opportunities migrate to other states with more robust workforce development programs. The stakes couldn’t be higher, and the time for action is now. 

This analysis is based on insights from a recent workforce development panel “The Next Ten Years: Bold Collaboration for a Southwest Clean Energy Corridor” at the Clean Energy Summit 2025 featuring leaders from Lucid Motors, First Solar, American Panel Solutions, Electrify Arizona, and other Arizona clean energy companies. Market data reflects current conditions as of July 2025.