Recent movements in our less-than-stellar state legislature call for the curtains on North Carolina’s renewable energy sector. Several weeks ago, the NC General Assembly passed the state budget. One item not covered by the new budget? The NC Renewable Tax Credit, a 35 percent tax credit for homeowners or companies who want to develop a renewable energy project. North Carolina will no longer provide the roughly $125 million per year for renewable projects in the state under the idea that the renewable industry in North Carolina has “matured.” Once again, it seems like our state legislators have dropped the ball.
To be fair, North Carolina’s renewable industry has gone through a boom since the tax credit was implemented. In 2011, we had virtually no renewable sources. Four years later, we’re fourth in the nation for renewable energy. Just recently, North Carolina became one of only four states to surpass 1 gigawatt of energy from renewables, about enough power for 200,000 homes.
The boom isn’t just bringing solar companies to the state. Companies including New Belgium Brewing, who recently wrote the NCGA protesting anti-renewable legislation, have been attracted here for the state’s good business sense and commitment to clean energy.
Apple, Facebook and Google have similarly spoken out in support of renewables. Why? Because it makes sense. Not just environmental sense, but business sense. For every dollar the state puts into the renewable energy, it’s received $1.54 in returns to the state through investment, enterprise or cost savings. A freshman in economics could tell you it makes no sense to bail on an investment with positive returns.
Furthermore, the renewable industry is helping support some of the poorest parts of the state. In eastern North Carolina, solar companies are paying farmers to lease out a portion of their land for solar farms. Principal Solar has plans to complete a 100 megawatt facility in Cumberland County. Not only are many farmers diversifying their businesses by doing this, but solar is paying five to six times the profit per acre and is helping insure farmers against price fluctuations or risks in agriculture.
Many farmers out East have vocalized support for renewables because they’re bringing in money. It’s strange then that the NCGA wants to handicap the industry, especially when earlier this year they voted for a measure that would redistribute money from sales taxes from thriving urban centers to struggling rural counties. What better way to support rural economies than letting them make money off of land and light, something they have a ton of?
The industry is booming in North Carolina, but does that mean it has “matured”? Hardly. Yet, the state seems to feel it no longer should receive subsidies. This is surprising considering our country still heavily subsidizes oil and gas. Last year, NCGA aimed to provide subsidies to the less-than-savory fracking industry.
As Elon Musk said, “If I cared about subsidies, I would have gone into oil and gas,” (Musk being the same entrepreneur who built a billion-dollar empire on the backs of SolarCity and Tesla electric cars. Oh, and space travel). On the contrary, the renewable energy industry is just getting started, and as it’s catching its wind, our state legislature just kneecaps it. We can only hope it survives the assault.
Republicans claim that renewable companies shouldn’t get any special treatment. If we take away the subsidies, the free market will take over. Right? Unfortunately, there is really no free market in North Carolina for power, as it’s largely controlled by a monopoly in the form of Duke Power.
How much of a monopoly does the company have? This year it sued a company for trying to sell power to customers generated from panels it put on their houses. Third-party sales are prohibited in only four states in the country. North Carolina is one of them. An upcoming bill would allow third-party sales to happen, but, no surprise, the state’s primary utility, Duke, is fighting to kill it.
Republicans also contend that subsidies to renewable energy hurt the poor because it makes utilities and energy more expensive. This is wholly false. Renewables in the long term reduce the overall energy costs to tax payers. Our state’s Renewable Energy Portfolio Standard only charges 50 cents on utility bills, and taxpayer money invested in renewables is coming back to the state with returns. Not only that, but the benefits to cleaner air and water are almost priceless and even further make the economic case for moving to renewable. The REPS program has saved the state $162 million since 2007.
It seems that, like the decision to privatize the state’s Medicaid, the NCGA is intent on killing programs that are working for North Carolina. I’m all up for new solutions to reoccurring problems, but why change things when they’re working and working for a better future for North Carolina? It seems inevitable that the tax credit will expire, but there is hope.
Our state’s REPS program has plans to expand requirement for 6 percent of the state’s energy to come from renewable to 12.5 percent by 2025 in order to grow the industry. House Bill 332 presented by NCGA wants to freeze the requirement at 6 percent, further hindering the renewable industry.
If you feel passionate about a better, cleaner future for North Carolina and our continuing to be a leader in renewable energy, there are some people in our legislature who would love to hear from you, namely: Rosa Gill (the NCGA House Representative for District 33 that includes NC State, who voted for HB 332 to freeze the REPS at 6 percent); Bob Rucho (NCGA Senator who passed HB 332 through the Finance Committee despite a controversial voice vote that seemed to fail the bill); or even Mike Hager (the House Representative from Rutherford Co. who introduced the bill and conveniently used to be a manager at Duke Energy). NCGA members’ phone numbers and email addresses can be found on its website.
