Advance energy equity with community solar

Proponent Testimony for HB 197: Establishing a Pilot Program for Community Solar in Ohio

Introduction

Chairman Stein, Vice-Chair Blasdel, Ranking Member Weinstein, and members of the House Public Utilities Committee,

Thank you for the opportunity to submit proponent testimony on behalf of House Bill 197 (HB 197), which aims to establish a pilot program for community solar in Ohio. My name is Molly Bryden, and I am the Sustainability Researcher with Policy Matters Ohio, a nonprofit research institute dedicated to creating a more vibrant, equitable, inclusive, and sustainable Ohio.

Community Solar and its Benefits

Community solar has the potential to bring broad economic benefits to Ohio while addressing the growing demand for cleaner energy sources. As the fourth-largest energy consumer in the United States, Ohio’s electricity consumption accounted for 3.8% of the national total in 2022. However, the state only contributed 3.2% of utility-scale electricity generation. This disparity results in Ohio purchasing around 20-25% of its electricity from other states and Canada. Implementing community solar would accelerate the integration of distributed energy resources into the grid, enhancing Ohio’s energy independence and resilience.

Furthermore, community solar can alleviate the financial burdens faced by Ohio’s families. According to the Public Utilities Commission of Ohio’s Utility Rate Survey, the median annual electricity costs for residential customers in 2023 amounted to $1,468.57. This means that 17.5% of Ohio households are burdened with high energy costs. Community solar offers an opportunity to lower electricity bills while promoting a cleaner electricity grid, leading to long-term economic, environmental, and health benefits for Ohio’s communities.

Energy Burden and Access to Electricity

Ohio households with utility bills making up 6% or more of their income are considered to have a high energy burden. In 2023, a family would need to earn at least $44,410.98 annually to maintain a moderate energy burden. However, more than 37.9% of Ohio households have an annual income of less than $50,000, with over 25% earning less than $35,000. This disparity highlights the challenges faced by many Ohio families in accessing affordable electricity. Between June 2022 and May 2023, Ohio’s utilities reported 281,000 service disconnections due to nonpayment, further underscoring the need for solutions like community solar to address energy affordability and access issues.

The Financial Case for Community Solar

HB 197 guarantees bill savings for program participants, promoting equitable renewable energy development. Additionally, falling solar costs further strengthen the financial case for community solar. Over the years, the cost of solar photovoltaics has significantly decreased. In 2010, solar energy was 710% more expensive than fossil fuel sources. However, by 2022, it became 29% cheaper than the cheapest fossil fuel generation source. This downward trend in solar costs is expected to continue, making community solar an attractive option for Ohioans.

Barriers to Residential Solar Adoption

While solar energy is becoming increasingly competitive with traditional generation sources, residential solar adoption is often limited by homeowners’ financial capacity. The average cost of installing a five kilowatt rooftop solar system in Ohio is $13,500. Although federal tax credits can reduce installation expenses by 30%, solar adopters must finance the full installation cost upfront before claiming the credit the following year. This financial barrier makes solar inaccessible for many Ohio families, especially those already burdened with high energy costs. Additionally, renters, who make up 33.2% of Ohio households, do not have the option to install solar panels. Community solar provides an equitable alternative that can overcome these financial and structural barriers, allowing all Ohioans to benefit from renewable energy sources and lower utility costs.

Opportunities for Ohio Businesses

HB 197 would enable Ohio businesses to participate in the growing community solar market. Nationally, community solar capacity has experienced annual growth rates between 111% and 161% from 2020 to 2022, with 24 states passing legislation to support community solar. Private developers have capitalized on this market growth by investing in other states. For example, in Maine, which saw a significant increase in community solar capacity in 2023, the majority of registered project sponsors are from states with supportive policies for shared renewables. This correlation suggests that Ohio businesses can benefit from entering the community solar market and position themselves for future growth.

Ohio’s Renewable Energy Landscape

Currently, Ohio ranks 46th for renewable energy consumption as a share of total energy consumed in the state. The state’s renewable portfolio standards are also the lowest among states that have such standards. It is crucial not to let Ohio’s history of pro-utility energy policy hinder meeting the increasing consumer demand for clean energy. HB 197 presents a critical opportunity for Ohio lawmakers to listen and respond to the needs of their constituents by expanding access to clean energy assets.

Conclusion

Expanding access to clean energy assets through community solar is beneficial for the state, businesses, and Ohio’s working families. By participating in community solar, subscribers have greater control over where and how their energy is produced, promoting energy equity and creating economic opportunities for all Ohioans. Thank you for considering our proponent testimony on behalf of HB 197.

Tags

• Sustainable Communities
• Energy
• Clean Energy & Green Jobs
• Molly Bryden
• 2024

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Indicator: Percentage of renewable energy in Ohio’s energy mix.

2. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
   • Indicator: Percentage of Ohio households facing undue energy burdens.

3. SDG 3: Good Health and Well-being

   • Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.
   • Indicator: Number of service disconnections due to nonpayment of electricity bills in Ohio.

4. SDG 8: Decent Work and Economic Growth

   • Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation.
   • Indicator: Growth in community solar capacity in Ohio.

Table: SDGs, Targets, and Indicators

Analysis

The article addresses or connects to the following SDGs:

1. SDG 7: Affordable and Clean Energy
2. SDG 1: No Poverty
3. SDG 3: Good Health and Well-being
4. SDG 8: Decent Work and Economic Growth

The specific targets under these SDGs that can be identified based on the article’s content are:

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
2. Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
3. Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.
4. Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation.

The indicators mentioned or implied in the article that can be used to measure progress towards the identified targets are:

• Percentage of renewable energy in Ohio’s energy mix (Indicator for Target 7.2).
• Percentage of Ohio households facing undue energy burdens (Indicator for Target 1.2).
• Number of service disconnections due to nonpayment of electricity bills in Ohio (Indicator for Target 3.9).
• Growth in community solar capacity in Ohio (Indicator for Target 8.4).

The article provides information on the need for community solar in Ohio to address the state’s electricity demand, reduce energy burdens faced by households, improve health and well-being, and create economic opportunities. These align with the SDGs mentioned above and their respective targets. The indicators mentioned in the article can be used to measure progress towards achieving these targets.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: policymattersohio.org

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