Has Ohio failed to build on NWO solar successes?
The title of the first of a three part series by the Joe Vardon, who’s returned to the Blade after being the executive assistant of Lucas County Commissioner Ben Konop, is State of Ohio fails to build on northwest Ohio solar success. The article contains some interesting observations and facts, especially in relation to touting Michigan offering more than Ohio. In 2009 it was reported by the New York Times that the American Council for an Energy Efficient Economy ranked Ohio 28th, Michigan was 34th when it came to energy-efficient states.
Dayton Daily News asked back in 2008, Could Ohio become ‘Silicon Valley of alternative energy’? where our reliance on coal was referenced:
If Ohio were to stop burning coal tomorrow, the state would shut down.
Eighty-six percent of Ohio’s electric energy comes from coal combustion — a key factor in menacing climate change. That’s about to shift.
Ohio has spent millions on solar and alternative energy companies, mainly making use of federal dollars. 25 Ohio projects received more than $13 million in grant awards in November of 2009, one million of that coming to NWO, as one recent press release example. Xunlight has gotten quite a bit of grants and other funding, that has been the topic of releases shared on the blog in the past year alone. The Cleveland Plain Dealer reported in 2009 that (link) the Federal government gave Ohio $96 million to fund the manufacture of renewable energy technologies, such as wind turbines and solar panels.
There’s always been some difference in the number of jobs in Ohio resulting from green and alternative energy jobs being reported. It was reported in 2007 that the American Solar Energy Society (link):
…Ohio has 503,000 jobs and $50.9 billion in revenue from renewables and energy efficiency fields as of 2006 – for about 1.5% of the U.S. total.
Wind power leads the pack in Ohio with 1,700 jobs and $250 million in revenue, followed closely by Geothermal at 1,200 and Fuel Cells with 1,030 and growing. With Ohio’s Third Frontier Fund recently investing $18 million in the Center for Photovoltaics Innovation at the University of Toledo, Ohio could expect growth in Solar PV from its current 460 jobs.
Policy Matters released a report for 2010, Mapping Green Career Pathways where it was stated:
Ohio, in particular, has the potential to become a key part of the future clean energy supply chain. Environment Ohio has identified more than 440 businesses and research institutions already working in the solar, wind, biomass, geothermal and fuel cell industries, and REPP has identified a total of 2,465 firms in Ohio that are primed to produce component parts for wind turbines, solar panels, biomass co-firing systems, and the other renewable energy technologies that will power the clean energy economy. New investments and new markets for clean energy technologies could help these firms create over 51,000 new jobs in the state, in occupations ranging from production workers to machinists, welders, boilermakers, and technicians, among others.
In 2006, Industry Week reported, Alternative Energy Companies Calling Ohio Home part of that article:
“It is clear executives at alternative energy companies recognize the benefits of Ohio’s business environment and the strong quality of life the state has to offer,” said Ed Burghard, executive director of the Ohio Business Development Coalition.
In 2005, Ohio renewed the Ohio Fuel Cell Initiative, which helps expand financing, research, development, demonstration and training projects in the fuel cell industry. Ohio is one of the few places where all phases of fuel cell development takes place, from research and development to component suppliers and final product manufacturing, according to a statement by the Ohio Business Development Coalition.
The state’s business reforms, such as no tax on investments in machinery and equipment and no tax on the first $1 million in gross receipts, are important considerations for alternative energy companies looking to maximize their return on investment, explains the coalition.
The evidence is clearly there that Ohio has not taken advantage of the alternative energy industry as some other states have. Part of that is due to the skepticism of Ohioans, including some who are elected, as to the value of alternative energy jobs. It’s definitely not from a lack of good ideas that are based on what has worked in other areas. One recent example would be Ben Krompak suggesting an East Bay Green Corridor type partnership for our area.
Part of this is due to some not believing that state or federal money should be spent on alternative energy jobs, that “government-created green jobs are unsustainable” to quote one recent commentor. Alternative energy has to be an affordable option for it to replace traditional energy, it is true that it does no good to create solar panels, as an example, if no one can afford to outfit their home or business with solar panels and see a sizable savings that makes it worth it.
Which leads us back to the original question, do you think Ohio has failed to build on northwest Ohio solar success and that thousands of jobs have been lost because of it?
I think job creation is unmeasurable in relation to one policy. We may be able to gain thousands of jobs in the ‘green’ industry but you have to measure the losses too. The losses, however, are more difficult to measure since it cannot be easily traced back to a specific policy. It’s a net effect we should be looking at.
I believe that Ohio has given enough money to these industries already, and maybe it has given too much. I do not like the marketing package they are using in trying to sell the solar industry. They keep trying to sell it as the new source of jobs for this area, the great replacement of our auto industry. I will support funding for these solar companies as assistance with research and development for renewable energy and energy independance but do not ask me to believe in them as a true source of jobs yet because if the government money dries up, if the consumer tax breaks for having solar power goes away in a tax season then so will these jobs.
Help with the research and when they prove themselves commercially, give them the loans they need to really expand. It’s still premature for solar yet.
If it was viable for this area, I would more support an investment into a Solar field power plant than giving companies money directly. That would be a build on infrastructure with lasting benefits. That is what we should do to reduce our dependance on a limited resource like coal.
March 8th, 2010 at 8:08 amIf the solar industry was so great to invest in, then why don’t the companies and other private investors put more of their money into it? Maybe they don’t see the long-term viability of the industry, as politicians do for buying votes. And as long as government continues to throw more taxpayer money to them, they will continue to hold their hands out for the big bucks from the public coffers.
March 8th, 2010 at 12:12 pmWhere should Ohioans be getting their power from? You think that solar is too heavily subsidized; you should look at what the nuclear power plants get.
People complain about taxes being a deterrent to new business in NW Ohio, you should look at the cost of electricity. I could be build a plant into Toledo tomorrow and get a nice tax break, but I wouldn’t be able to afford to keep the lights on.
Building on green technologies helps in two fold. First, it creates jobs; second, hopefully it will create cheaper electricity for the area.
March 8th, 2010 at 12:43 pmDoes anyone know what happened to Buckeye Silicon? This company was mentioned in another thread. They committed to building a plant in Toledo, but I haven’t seen much news on it since. I think the old Jeep property would be a reat place for it, assuming it is still going to be built.
March 8th, 2010 at 12:50 pmPatrick, I have not seen anything new about them,they are still listed as tenants at the UT incubator but they don’t have a web site listed.
March 8th, 2010 at 1:04 pmIt looks like Toledo has a good chance at landing a company named Isofoton, according to Gov. Strickland. This is in today’s Blade. It seems to me that the state is trying, but the competition is stiff. Maybe some policy changes are in order, but I don’t think the state is asleep. Thanks for the response, Lisa.
March 8th, 2010 at 1:17 pmYou’re welcome Patrick, I’m going to keep digging, if I find out something more specific I’ll let you know.
I agree with you that I don’t think Ohio is asleep on this either.
March 8th, 2010 at 1:46 pmOn the policy front, I know John Kasich has called for eliminating the Ohio estate tax. 27 other states have eliminated this tax, as it is a barrier to the inflow of venture capital. I know this tax raises minimal revenue for the state. This could be one of multiple steps the state could take.
March 8th, 2010 at 3:13 pmInvest in what? A horseless carriage? That’s not going anywhere, Mr. Ford.
Ah, the foresight of Toledoans. It’s new and different! Run away!
March 8th, 2010 at 3:31 pm@3
There is a difference between how nuclear and how solar is subsidized. Customers of nuclear are not given tax breaks for using nuclear. Mini nuclear power plants are not loaned to or given to businesses. I said I would be for building a solar field as a power plant if it was viable for this area and that is the same help as nuclear.
Green jobs are hard to measure because the gross effect looks great but the net affect is too hard to measure. Spain
doesn’t seem to be doing well with it. Here is another article.
I believe we need to invest in alternative energy but let’s keep job creation to businesses who don’t create jobs from public money. If we want to help in job creation, cut the cost of doing business for everyone.
March 8th, 2010 at 3:39 pmBusinesses don’t create jobs with public money? Xunlight is hiring people all the time and has tons of loans and grants from the feds and the state.
The entire Third Frontier effort for the last 8 years has generated nearly 50,000 jobs from businesses who have received state money. In fact, the revenue generated will completely pay back the taxpayers by 2015.
(My wife works at UT and is involved in lots of this stuff. I’m repeating some of the same things she says when she’s exasperated by people spouting off their opinions based on nothingness.)
March 9th, 2010 at 9:04 amDoug,
March 9th, 2010 at 9:04 amSo are you calling for an end to “corporate welfare”?
Jim, I didn’t say businesses don’t create jobs with public money. I said we should “keep job creation to businesses who don’t create jobs from public money.” There is a difference in what I actually said and the context it is used and what you quoted from me. Additionally, I ask that you read the links I posted as they pertain to my views and beliefs about green jobs as a source of job growth. You will see that a study in Spain has lost 2.2 jobs for every green job created and only 1 in 10 of the new green jobs were permanent. Think about what I said about net jobs and gross jobs created.
thisjustin, yes I am calling for an end to “corporate welfare”. Tax cuts, tax breaks for everyone is what will get this economy moving again.
March 10th, 2010 at 8:19 am