A recent report argued Ohio’s freeze on renewable energy standards has put the state’s clean energy industry at risk while state legislators study current laws.
Ohio Senate Bill 310 froze the state’s renewable energy mandates for two years and created a panel to study whether to change the state’s energy laws. But in the meantime, that legislation has cost the state jobs, as well as about $218 million in energy savings, according to a recent report by Environment Ohio, an environmental advocacy group.
The report estimated SB 310 has cost Clark County about $3.6 million in energy savings since it was enacted, and could cost about $29 million by 2025 if the freeze were made permanent. It argues if the freeze continues, the Dayton metro area would miss out on electricity savings worth $251 million by 2025, enough electricity to power about 175,000 homes for a year.
The report also cites Ohio House Bill 483, which increased the property line setback requirements for new wind farms in the state. The report noted that this law made it harder to develop wind farms like those proposed for Champaign County, and argued legislators should reinstate the renewable mandates.
Several state legislators, including Ohio Sen. Keith Faber (R-Celina), could not be reached for comment regarding the freeze. But Faber and other lawmakers have said in the past that while Ohio’s renewable energy laws might make sense, the rules needed to be reviewed to ensure they are working to benefit consumers.
The state’s previous laws were potentially flawed, and needed to be reviewed, said Rob Nichols, a spokesman for Ohio Gov. John Kasich. He said the freeze will help legislators find a better balance than the previous standards.
“The environmentalists and the bankers who paid for their wind and solar projects want zero changes to Ohio’s flawed renewable energy standards, while those on the other side would like to scrap renewable energy altogether, Nichols said.
“Neither extreme is right,” he said. “The assumptions that went into the current standards were flawed and threatened Ohio’s ongoing economic recovery.”
The mandates are also an indication that wind energy does not yet provide power at a competitive price, said Tom Stacy, an opponent of the wind industry who keeps track of projects across the state. He also said while the mandates can create some jobs, the impact is small because manufacturing firms, for example, can still produce parts for wind and solar projects elsewhere.
Ohio’s current renewable energy law called for a quarter of the state’s energy to come from alternative sources by 2025, with half of that coming from renewables such as wind and solar. The law also required utilities to encourage energy efficiency, for example by offering customers rebates to purchase efficient appliances.
A committee tasked with studying the laws is expected to meet next month. It will develop a report for state lawmakers by September, said John Fortney, a spokesman for the Ohio Senate.
A Cincinnati-area solar firm that installed a 500-kilowatt solar array at Urbana University is one of several companies whose business has been affected by the Ohio’s two-year freeze on its renewable energy mandates, according to the report. Melink Corp. was founded in Milford, Ohio, in 1987, but saw much of its growth after the state’s renewable energy mandates were enacted.
Among its projects, Melink installed a solar array at Urbana U. in 2012 that was expected to provide roughly $2 million in energy savings for the university over the 30-year life of the project. Melink installed the project at no cost to the university, and in return, Urbana had previously pledged to purchase the energy produced from the solar array.
Many of the company’s potential projects in Ohio have since been stalled after the freeze took effect, said owner Steve Melink.
“We had a growing pipeline of many other projects in the state of Ohio, but once SB 310 was passed, it killed the market and it really forced us to look at richer opportunities in other states,” Melink said.
Franklin University recently stepped in to acquire the smaller school after Urbana U. faced significant financial problems. The solar panels are still operating, but officials at Urbana U. are still reviewing existing contracts since the acquisition, so it’s not clear how well the project is working, said Cherie Moore, a spokeswoman for the university.
Assurant Specialty Property in Springfield also installed more than 6,200 solar panels at its Springfield location with the help of Third Sun Solar, based in Athens, Ohio. Officials at Third Sun could not be reached for comment.
Officials at Assurant did not weigh in on the state debate, but said the solar project has helped them control and plan for their energy costs. Springfield is the only Assurant facility with such an installation, but the company would consider similar projects at other locations in the future, said Robert Byrd, a spokesman for Assurant.
“The solar installation helps augment the power we receive from the local electric system,” Byrd said. “We get more than 2 million kilowatt hours a year — or about half the energy we use at Springfield — from our on-site solar equipment.”
The Springfield News-Sun has provided extensive coverage of Ohio’s renewable energy laws and will continue to cover the issue. For this story, the paper spoke to environmental organizations, area businesses and critics about a recent report on how a freeze on renewable energy requirements affects residents.
$2.5 billion — Energy savings Ohioans could lose by 2025 if the freeze is extended
$251 million — Energy savings Dayton metro area could miss by 2025 if freeze is extended
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