OPINION

Our view: State takes a step backward on solar energy – and jobs

Politicians in North Carolina, as do politicians everywhere, talk about the importance of creating and retaining jobs. Evidently a majority of North Carolina legislators don’t mean it when those jobs are in renewable energy.North Carolina provides 35 percent in tax credits up to a $2.5 million cap for major renewable-energy generating projects. Smaller amounts are provided for residential projects. This is in addition to the 30 percent federal tax credit.

The state credits also apply to wind, hydropower, geothermal and biomass, but the primary beneficiary has been the solar power industry. In the last four years North Carolina has gone from very little production to ranking fourth in the nation. North Carolina produces more electricity from the sun than all other Southeastern states combined.

At the start of the year, solar installations were producing nearly 1,100 megawatts of electricity. Projects to add another 800 megawatts are underway. Asheville-based FLS Energy alone is installing 250 megawatts.

The facilities already installed produce enough power for 116,000 homes, according to the Solar Energy Industries Association. With those installations come jobs. SEIA says the state has more than 189 solar-energy companies employing 5,600 people. More than 50 of those people work for FLS Energy and hundreds more are employed building FLS projects.

RTI International says clean energy has supported 44,500 full-time-equivalent jobs, with $3.5 billion invested between 2007 and 2014. For every dollar spent on renewable energy tax credits, $1.54 is generated in state and local taxes.

Solar power is especially important for maintaining otherwise marginal farms, according to Gary Lanier, who heads economic development in Columbus County. “When landowners use some land for solar power generation, they often find their land income increasing by 500 percent or more,” he wrote.

Nevertheless, the belated North Carolina budget ends the program as of Dec. 31, though some projects already underway will continue to receive the credits. The House had wanted to continue the credits, while the Senate wanted to eliminate them and Gov. Pat McCrory wanted to continue them for projects other than solar.

McCrory claimed in his budget message that the industry had “matured” and no longer needed the credits. It is true that due to reduced costs solar energy is rapidly reaching the point where it can stand on its own, but it’s not there yet.

Another claim is that the credits raise power bills. The Charlotte Business Journal points out that power from renewable sources is sold to utilities at mandated rates designed not to increase charges for power.

As for those who say government shouldn’t be favoring one form of electric power over another, what about the $400 million Duke Energy has received from the federal government since 2000 for infrastructure improvements? This is the same Duke Energy that paid no federal income tax from 2008 to 2012, according to the Raleigh News & Observer.

Incidentally, Duke also is a major recipient of payments in lieu of federal credits for solar power, to the tune of $473 million, according to the Charlotte Business Journal. It also got about half the state credits between 2007 and 2014, according to RTI International.

Renewable energy is important for a number of reasons. Besides reducing air and water pollution — natural gas is cleaner than coal but still produces some pollutants — it lessens our dependence on imported oil. Has everyone forgotten the lines at gasoline stations in 1973 and 1974 when Arab oil states cut off supplies over U.S. support for Israel?

We cannot wean ourselves from fossil fuels in the short run. But without development of renewables, we doom ourselves to ever more costly and environmentally destructive searches for supplies of oil and gas. The Arctic, opened up by the global warming to which fossil fuels have contributed, is the next frontier, and who knows what problems exploitation there may entail.

And don’t forget the clean-energy jobs.