Guest Column

Grant Extension Needed to Increase Solar Development and Jobs in Utah

By Rhone Resch, Solar Energy Industries Association, Guest Writer, 7-29-10

Last year, the largest solar array in Utah came online in Clearfield. It was not built as an experiment or demonstration project. It was built to help secure the Hill Air Force Base’s energy infrastructure with a clean, safe and reliable source of energy.

Growing concerns about volatile fossil fuel prices and slow job growth have sparked a call from Americans demanding solutions that move us away from our dangerous dependence on foreign energy sources and toward cost-effective, homegrown energy. For Utah, that solution will mean harnessing the sun’s energy with utility-scale solar power plants capable of delivering large loads of electricity--while creating thousands of local jobs. 

In fact, the solar industry is poised to create new jobs and investment nationwide if effective federal policy mechanisms are extended.

In particular, the Department of Treasury grant program has been highly effective in driving the growth of solar jobs and deployment. But it is set to expire in December despite this success.

A recent study by EuPD Research found that extending the Treasury grant program for two years would add nearly 65,000 new jobs and result in 5,100 megawatts of new solar installations, enough to power 1 million homes. This is an essential policy mechanism that allows utility-scale and commercial solar developers access to critical financing that has been painfully absent during the economic downturn.

To date, the Treasury grant program has provided significant economic value and savings for American taxpayers, according to the report. The best part is that extending this program will provide a return on the taxpayers’ investment, considering the hundreds of thousands of workers leaving the unemployment line and making a good living in the solar industry. 

Compare that to the fossil fuel industries, which have received more than $70 billion in taxpayers’ money just in the last 10 years. These fully mature industries have been heavily subsidized by the taxpayers for decades, while renewable industries such as solar have almost always been an afterthought.

Americans across the political spectrum support solar development. When Gotham Research Group in February asked a sampling of Americans to weigh in on the development of energy on public lands, three out of four supported the development of solar energy plants on public lands. Solar power was also the top choice (38 percent) as the best use of public lands not being set aside as nature preserves or national parks.

There are challenges with developing on public land though. The growth of the utility-scale solar industry in Utah will not happen if the process for siting for these projects is not streamlined.

We must make doing business in Utah, and America, as seamless as possible. Even though solar created 17,000 new jobs and grew its revenue by 36 percent in 2009, this delay can hurt growth in the long run. As global competition in the solar market increases, we need every advantage we can get.

There have already been positive steps. Last June, the Department of the Interior announced plans to streamline the development of solar energy projects on federal lands, including here in Utah. This initiative will help utility-scale solar power developers locate on appropriate public lands without harming the state’s sensitive wildlife or habitat, while producing clean electricity for Utah. But more must be done and sooner. 

The Hill Air Force Base is only the beginning. Aside from its practicality – providing homegrown energy for our troops – this solar array is a testament to a market that will continue to grow if supported by common sense policies. The Treasury Grant Program extension is the first step and lawmakers in Washington should support its extension. It will bring jobs and large-scale solar energy production to Utah while providing a return on taxpayers’ investment.

Rhone Resch is the President and CEO of the Solar Energy Industries Association, the national trade association of the solar energy industry.

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