This Op-Ed appeared in the Greenville News on April 16, 2011.
As the 2011 legislative session continues, one of the top concerns of South Carolina citizens continues to be job creation. Right now, over 10 percent of our citizens are unemployed, many of them skilled workers. As our lawmakers search for viable options to put our state back to work, we are missing out on a veritable gold mine of economic development: alternative and renewable energy production, particularly solar energy.
Despite recent investment announcements by businesses, traditional manufacturing jobs in South Carolina have consistently declined during the past few decades. Many states around the U.S. ¬ particularly those in the Southeast - have been aggressively developing strategies and incentives to attract clean and green industries that will result in investment and job creation.
Last year, the South Carolina Legislature took positive steps towards embracing clean energy. The Economic Competitiveness Act included a tax credit for manufacturers of green energy equipment and materials. While this is a critical first step, it is not enough to attract investment and stimulate demand for solar energy. Our state needs to implement legislation that includes new tax credits for large-scale utility and commercial installations, as well as an increase in incentives for residential installations.
There is a direct correlation between incentives that stimulate demand in solar energy and capital investment in manufacturing facilities and green job creation. A recent Clemson University study revealed that establishing commercial and residential incentives in South Carolina would be net revenue positive.
Currently, electricity generated from renewable resources such as wind and solar typically costs more than power generated from coal, nuclear or natural gas. In the last few years, additional manufacturing capacity, increased demand and technological advances have driven down the cost of solar energy. While a gap between the cost of traditional and renewable power still exists, it is closing - and incentives can help close that gap sooner.
The reality is that energy prices will remain volatile. Increased demand from the United States and from China, India and developing countries will drive energy prices higher. Reliable and stable energy is central to our country’s economic security and environmental future. Solar will not replace fossil and nuclear as primary fuel sources in the U.S., but solar technology has a role in a more balanced energy portfolio.
We have tremendous resources in South Carolina that we can leverage for clean and green energy. We have the Savannah River National Laboratories, Clemson University, the University of South Carolina, our technical colleges, and others that are engaged in renewable energy education and research. One of the major utilities serving South Carolina, Duke Energy, is viewed nationally as a leader in solar technology. However, the majority of their solar projects are not in South Carolina; they are in states that have legislation that encourages and incentivizes solar.
North Carolina has a comprehensive incentive program for renewable energy production companies. Incentives are attractive to these businesses – so much so that in the last three years, nearly 300 companies chose to relocate to or open locations in North Carolina, resulting in over 12,500 green jobs. Tennessee and Georgia, which also have more attractive incentives than South Carolina, have landed several large manufacturers during the last few years that produce materials and products for the solar industry.
It is inevitable, given the finite nature of fossil fuels, that the federal government will pass legislation mandating alternative renewable energy programming for each state. When it does, demand for solar products, designers and installers will spike. Right now, the infrastructure to service this industry is going to our neighboring states. It would be prudent for our lawmakers to implement an energy program that best meets our state’s needs rather than waiting for a program to be written for us.
We must leverage our strengths that are attractive to green businesses and become a leader in the emerging green economy. These strengths include an educated and trained workforce; strong partnerships between our universities and businesses, and a link between our legislative agenda and economic development. We are well positioned to be a leader in green industries. Now we need the vision to create conditions so the manufacturing investments and new jobs come to South Carolina, not North Carolina, Georgia and Tennessee.
