A Dec. 5 report is encouraging Cincinnati to become the solar energy capital of Ohio and the broader region. The report, titled “Building a Solar Cincinnati,” was put together by Environment Ohio to show the benefits and potential of Cincinnati regarding solar power.
Christian Adams, who wrote the report along with Julian Boggs, says Cincinnati is especially poised to take charge in this renewable energy front, in contrast to the rest of the state, which gets 82 percent of its electricity from coal. Adams points to the sustainability-minded city officials and public, a “budding solar business sector” and the great business environment as the city as reasons why Cincinnati could become a pivotal leader.
With 21 public solar installations to date, the city has already seen some of the benefits of solar power. The most obvious benefit is cleaner air, which leads to better overall health and helps combat global warming. But the report points out that local solar initiatives mean local jobs. “You can’t export these jobs,” Adams says. “It’s a great opportunity for economic revitalization.”
With solar energy comes an array of job opportunities for solar installers, solar designers, engineers, construction workers, project managers, sales associates and marketing consultants. That’s enough to create brisk job creation. The report points out “energy-related segments of the clean economy added jobs at a torrid pace over the last few years, bucking trends of the Great Recession.”
Still, there are hurdles. Although solar energy saves money in the long term, installing solar panels has a high upfront cost. The cost can make the short term too bleak for many potential customers.
To help overcome the short-term problem, the report suggests third-party financing. In these financing agreements, customers agree to give up roof space to have a solar power company install solar panels, and then customers agree to buy their power needs from the company. It’s a win for the solar power company because the panels eventually pay for themselves through new customers, and it’s a win for the customer because he sees more stable, lower energy costs and cleaner air. Adams points out that a few businesses and individuals in the area have already taken part in such agreements with great success.
There are also some incentives already in place to encourage solar energy. Ohio’s Clean Energy Law, which was passed in 2008, pushes utility companies into the renewable energy market with Solar Renewable Energy Credits. These are credits utility companies must earn to meet annual benchmarks by installing solar panels or purchasing them from third parties. Duke Energy has followed the law’s requirements by establishing its own renewable energy credit program.
Ohioans also have access to some tax breaks — the Energy Conversion Facilities Sales Tax Exemption, Air-Quality Improvement Tax Incentives and Qualified Energy Property Tax Exemptions — and loan programs — the Energy Loan Fund and Advanced Energy Fund — that encourage solar and other renewable energy sources.
Larry Falkin, director of the city’s Office of Environmental Quality (OEQ), says the report didn’t have much new information, but he’s glad it can be used to push solar energy to the broader public. He touted the benefits of job creation and reducing reliance on foreign energy sources by moving toward energy independence.
For now, the city is mostly taking the approach of leading by example. Falkin says the city is acting like a “model” for solar energy. Cincinnati added solar installations to two city facilities this year, and another will be added by the end of the month. Falkin’s office is also working together with different organizations to keep any momentum going.
Adams and Falkin both attended a Dec. 5 roundtable discussion that engaged regional officials, including solar businesses, environmental and sustainability groups, education leaders and the Cincinnati Zoo. They both said the roundtable went well.
“I think all the right people are coming together and doing the right things to try to move us forward,” Falkin says.
This article appears in Dec 5-11, 2012.