A field of solar panels in the desert with mountains in the background

Climate Tech

Build a greener future in Greater Phoenix

With 300 days of sunshine annually, nationally renowned sustainability education and a vibrant startup community, Greater Phoenix is poised to be a leader in climate technology development. Whether you’re a solar company looking to scale, a carbon-driven company exploring new terrains or a novel innovator seeking partnerships, the region has something for you.

Climate Technology Industry Report

Get our 31-page, in-depth report on the climate technology ecosystem in Greater Phoenix.

Unique Verticals

Verticals in climate and clean tech have chosen Greater Phoenix as a launching ground. Join a cluster of energy, farming, emissions tracking, products that call the region home.

Supportive Ecosystem

Companies find support around the region through specialized programs at universities, major employers that have set ESG goals, and lofty ambitions of utility providers.

Natural Resources

Greater Phoenix sees more than 300 days of sunshine per year and a low risk of natural disaster, creating an environment conducive to growing a climate tech business without interruptions.

Greater Phoenix offers reliable infrastructure for future growth in the semiconductor industry

Logistical Advantages

With seamless access to markets in states including California and Texas markets, 35 million consumers can be accessed within a one-day truck haul. Take advantage of the second-most reliable grid in the nation.

Competitive Operating Costs

Greater Phoenix offers affordable real estate and employment costs compared to peer markets, providing operating costs for climate tech companies up to 28% lower than competing markets.

Quality of Life

Greater Phoenix offers shorter commute times than peer markets, a vibrant arts and culture scene, and access to the biggest sporting events in the nation.

#1

ASU ranks No. 1 in Sustainability and No. 1 in global impact

300+

Greater Phoenix sees more than 300 days of sunshine annually

$5.1B

invested in AZ companies through VC/Equity financing deals from Oct. '20 - Nov. '23

Source: CBInsights; Pitchbook

Unique Verticals

From energy to emissions to innovative clean products, a variety of innovative climate technology companies have found success in the region. Explore some below:

Clean Energy

Arizona was recognized by Forbes as the third-best city in the country for solar energy. Find more information on the Greater Phoenix solar ecosystem here.

Air Treatment and Clean Emissions

 

Electric Vehicle and Battery

For a deep-dive into the electric and autonomous vehicle ecosystem in Greater Phoenix, visit this webpage.

Clean Products

 

Company Description

Diamond Age develops next-generation robotics for 3D home construction to improve efficiency and cost in home building, while reducing manual labor requirements.

Footprint designs, develops and manufactures plant-based fiber solutions with the goal of eliminating single-use plastics that harm consumers and the planet.

Gemtek Products provides high-performance cleaners and other specialty chemicals derived from renewable plant-based resources for a range of industrial applications such as food process, national defense and transportation.

OnePointOne integrates artificial intelligence, automation and plant science to leverage vertical farming technology in growing food, developing medicines, and researching genetics.

SOURCE Water develops the world’s first renewable drinking water system with solar power to extract clean, pollutant-free, reliable drinking water from the air.

Supportive Ecosystem

Phoenix offers a reliable power grid for cybersecurity operations

Lofty Utility Goals

Arizona Public Service (APS)

One of Arizona’s two major public service providers, APS has committed to 65% clean energy mix by 2035 and completely carbon-free by 2050. Less than 17% energy usage today comes from coal. APS has achieved recognition including:

  • Ranked as a top business service provider by J.D. Power & Associates
  • Achieved double-A score for climate and water stewardship
  • Named one of the world’s Top 100 Green Utilities
A dam and bridge sit over a watershed in Arizona.

Salt River Project (SRP)

The other of Arizona’s two major public service providers, SRP plans to reduce the amount of C02 emitted by 65% by 2035 and 90% by 2050. It plays a large role in water and canal management in Greater Phoenix. SRP has received recognitions including:

  • Ranked as a top business service provider by J.D. Power & Associates
  • Ranked No. 1 in customer satisfaction in the west large segment for 20 years in a row
  • Ranked No. 1 in nation for reliability

Companies committed to ESG goals

Major industrial leaders have announced ESG goals, showing dedication of being good stewards of resources in Greater Phoenix. Examples include:

  • 55% absolute reduction in Scope 1 and 2 GHG by 2030
  • Aligned mission with UN Sustainable Development Goals
  • 40% reduction in GHG emissions by 2034
  • Carbon neutrality by 2035
  • Maintain net-zero emissions for Scope 1 and 2
  • Net neutrality in Scope 1 and 2 GHG emissions by 2040
  • Earmark $50M/year for projects with greatest impact on GHG footprint
  • Carbon-neutral computing by 2030
  • Net-zero GHG emissions in operations by 2035
  • Net zero GHG emissions in Scope 1, 2 and 3 by 2045
  • Net zero emissions by 2050
  • Net-zero GHG by 2040
  • Investing in low and zero carbon energy solutions
  • 50% reduction in emissions intensity by 2025
  • Workshops for GHG inventory with suppliers

Arizona State University: The top sustainability school in the United States

ASU, ranked No. 1 in sustainability in North America and No. 2 in the world, provides research and a skilled workforce toward clean and renewable energy through a variety of innovative lab spaces and learning centers. Highly regarded spaces include the Advanced Technology Innovation Center (ATIC), the Global Institute of Sustainability and Innovation, and the Walton Center for Planetary Health, which is home to programs including the Global Futures Laboratory, College of Global Futures, and the School of Sustainability.

ASU’s clean energy initiatives include:

Direct Air Capture (DAC) hub

ASU, CarbonCapture, Carbon Collect and other partners are designing a regional DAC hub under an initiative supported by the U.S. Dept. of Energy.

Photo: CarbonCapture

Carbon Collect’s Mechanical Tree

The first commercial-scale Mechanical Tree removes CO2 from the atmosphere without the use of blowers or fans.

Photo: Carbon Collect

Red Rock Solar Project

ASU produces about 53 MW of solar and solar thermal energy with the help of its collaborative project with Arizona Public Service (APS).

Photo: McCarthy

Swette Center for Environmental Biotechnology

The biotech center works with Mesa’s wastewater plant to find more effective ways to feed carbon dioxide to microalgae.

Photo: ASU

Climate tech talent pipeline

Greater Phoenix produced over 4,300 graduates in fields related to climate technology during the 2020-21 school year, comparable to San Diego, San Jose and Seattle. The region’s universities are committed to supplying the workforce needed to enable companies to scale in the region.

Certificates

Associate

Bachelor

Master

Doctor

627

148

2,626

766

166

Total completions awarded by metro

Source: Lightcast 2023 Q2 Dataset

#1

ASU has ranked No. 1 in innovation for 9 straight years

#1

ASU ranks No. 1 in nation and No. 6 in world in addressing UN Sustainability Development Goals

#1

ASU ranks No. 1 in engineering technology enrollment

Download the full industry analysis for more on education programs and talent pipeline

Climate Technology Industry Report

 


Incubators, Accelerators and Coworking Spaces

Greater Phoenix has a wide variety of networks, accelerators, incubators and funding challenges of which startups and can take advantage. Several, including the Center for Entrepreneurial Innovation (CEI), the Resource Innovation and Solutions Network (RISN) Incubator, LightWorks Innovation Accelerator and LaunchPoint Technology Accelerator, center around the development of climate technology.

Whether you are an established company or just getting your idea off the ground, the 40+ spaces housed in the region can accommodate any sized business. Explore an interactive map of coworking spaces and incubators below or find a pdf version here.

Learn more about the Greater Phoenix startup ecosystem here.

Natural Resources

Outdoors in AZ, Josh Reed

300+ days of sunshine

Arizona, known for warm temperatures and lack of natural disasters, offers advantages to people living and companies operating in Greater Phoenix. With more than 300 days of sun, there is minimal downtime caused by storms or natural disasters.

Upward view of large metal electric power pole
Reliable Power

With the second-most reliable power grid in the nation and highly rated electric utility providers, Arizona offers consistent power. Greater Phoenix has more than 500 megawatts of existing inventory and an additional 250 megawatts of inventory planned for the near future, a proactive approach to support continued growth in the market.

 

Phoenix offers a reliable power grid for cybersecurity operations
Environmental Resiliency

Over the last 10-year period, Arizona recorded only 33 total hours of natural disaster disturbances, a fraction of the downtime experienced by southwest neighbors California and Texas. Arizona has 73% fewer natural disasters than California.

Water Availability

Thanks to smart water planning over the past century that included the 1980 Groundwater Management Act, Arizona has a 100-year assured water supply and a superior water system compared to its peer states in the southwest. Get more information here.

Local Initiatives

There are a number of local initiatives centered around developing and harnessing natural resources and building more sustainability methods through the collaboration of partners from the federal and local governments, industry, and academia. Some include:

Arizona Sustainability Alliance

Arizona Sustainability Alliance promotes sustainable energy by implementing projects and educating the public. These projects help by cleaning parks, planting trees, refreshing and repairing existing community garden beds, and more.

Arizona Water Innovation Initiative

Water management has been a priority since before statehood, and the Arizona Water Innovation Initiative is a continuation of that commitment to water stewardship. This collaboration toward research and development include coastal water desalination, water-efficient agricultural operations, water treatment and reuse technology that supports energy production and microchip manufacturing, and new designs for urban water conservation.

Solar Zone at UA Tech Park

The University of Arizona partnered with Tucson Electric Power (TEP) to establish the Solar Zone at UA Tech Park. This park allows 10 companies and organizations to test and demonstrate a variety of solar technologies and systems.

Southwest Clean Hydrogen Innovation Network (SHINe)

SHINe is a regional hydrogen hub focused on production, storage, delivery systems and infrastructure. The partnership consists of more than 40 member organizations including clean energy companies, gas producers, nonprofits, and universities in Arizona, the Navajo Nation, and Nevada.

Logistical Advantages

The greater Phoenix region’s highways are well-planned and provide easy access
Southwest Proximity

Greater Phoenix  is committed to a reliable, modernized freeway system with room for expansion. These freeways and highways provide easy access across the region and to 35 million consumers within a one-day truck haul in California, Mexico, New Mexico, Texas, Colorado, Utah and Nevada.

Ecommerce, distribution, and logistics operations can utilize Phoenix's airline connectivity for quick transportation
Airline Connectivity & Access

Enjoy prime connectivity in Greater Phoenix with close connection to southwest markets, the cross-border supply chain in Mexico, and air travel and commerce efficiency through multiple airports. Phoenix Sky Harbor International Airport alone offers over 1,200 daily domestic and international flights.

Regional rail access in Phoenix offers additional transportation options for manufacturers in the region
Regional Rail Access

Greater Phoenix is served by two major railroads, Union Pacific and BNSF. With major rail lines throughout the entire Southwest reaching Greater Phoenix, operations can rely on these railroad systems for both the import and export of goods and materials.

Download the full industry analysis for more on location advantages

Climate Technology Industry Report

Competitive Operating Costs

Greater Phoenix Operating Environment

The state offers a minimalist regulatory approach, no corporate franchise tax and is constitutionally recognized as a right-to-work state. From tax credit and incentive availability and programs designed to increase access to capital, the region offers direct access to Arizona’s robust, pro-business climate. Greater Phoenix provides the right combination of affordability, size and scalability, making it the perfect choice for new-to-market and growing companies.

Competitive Tax Environment

Greater Phoenix has one of the most business-friendly tax climates in the region. Its average sales tax rate of 8.6% and corporate income tax rate of 4.9% are comparatively low, while its $320 max payment for unemployment insurance is the lowest of any major city in the southwest, about $240 less expensive than Austin and less than half the cost of that of Denver.

Climate Tech Annual Operating Cost by Metro

The Annual Business Operating Cost Pro-forma below estimates the cost of running a typical climate technology company in competitor markets across a handful of major expense categories. Component and custom analyses to match your company’s operations can be provided upon request. Contact us to request a custom analysis for your business.

Metro Payroll Benefits Utilities Real Estate Property Tax Total Operating Cost Index

Phoenix

$7,567,887

$1,732,393

$41,022

$386,000

$7,395

$9,734,697

100.0%

Boston

$8,885,569

$2,075,045

$80,496

$638,500

$374,700

$12,054,310

123.8%

San Diego

$8,420,883

$2,030,494

$86,926

$726,000

$175,650

$11,439,953

117.5%

San Jose

$9,927,617

$2,383,084

$79,730

$870,000

$181,500

$13,441,931

138.1%

Seattle

$9,108,752

$2,361,875

$33,482

$532,000

$142,430

$12,178,539

125.1%

Assumptions: $15,000,000 personal property investment; 50,000 square-foot Industrial Manufacturing, Leased; Utilities (per month): Electricity: 75KW, 30,000KWh; Water/Wastewater: 3,000cf, 5/8 meter; 100 jobs (Bureau of Labor Statistics equivalent occupations)

Source: Applied Economics Metrocomp Tool 2023

Greater Phoenix aerial view of downtown skyline and beyond
Arizona Incentive Programs

The state offers several quality incentives and programs to further decrease operating costs. The quality Jobs Tax Credit awards $9,000 of tax credits over three years to qualifying companies, while the R&D tax credit offers refundable and nonrefundable corporate income tax credits for qualified research and development done in Arizona, including company funded research at a state university.

Download the full industry analysis for more incentives and program details.

Climate Technology Industry Report

Quality of Life

Experience a vibrant lifestyle and diverse culture at an affordable cost of living.

Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails, and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep. Click the icons below to learn more about Greater Phoenix living.

Image: @m3ffest

Calculate your savings

Select your annual income, monthly mortgage, healthcare and grocery costs to find how much you would save with a move to Greater Phoenix.

Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Annual Income
Monthly Mortgage
5,000
Monthly Healthcare
Monthly Groceries
Total Annual Savings
$

Source: ACCRA Cost of Living Index 2023 Q2; Zillow Research September 2023

#4

Phoenix was ranked the fourth-best city for new college grads

Zillow, 2023

#8

Arizona was ranked the eighth-best state for working from home

WalletHub, 2023

#10

Phoenix was named a top-10 city to see art

USA TODAY, 2023

#10

Scottsdale was named among the top-10 city for families in the U.S.

WalletHub, 2023