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Community solar could be an important tool to lower electricity bills and bring clean energy to low-income communities. But even as federal incentives aim to lower the cost of building community solar arrays, big issues still stand in the way, advocates tell the Energy News Network.
When a community solar array is built, people in the area can sign up to receive electricity that’s often cleaner and cheaper than what they’d get from their utility. It’s ideal for residents who can’t put solar on their own roofs because of installation costs or other reasons.
Incentives introduced under the Inflation Reduction Act aim to boost community solar, with extra tax credits slated for arrays that benefit low-income people and areas. But it’s not easy to qualify a household as low-income. The process varies from state to state, but it often requires that people provide tax returns and other documentation to prove their income — something that could make customers reluctant to buy in.
Federal law does try to tackle this problem by letting LIHEAP eligibility count as a measure of eligibility for low-income community solar bonuses. The low-income heating assistance program has been around for decades, so it’s more familiar to many people. States can also designate whole areas as low-income to smooth the process.
Read more about the challenges holding up community solar, plus some solutions that are rolling out, at the Energy News Network.
🚌 New school: The U.S. EPA announces nearly $1 billion in grants for schools to replace diesel buses with electric and low-emissions vehicles, with a vast majority going to schools in low-income, rural and tribal communities. (Guardian)
⚡ The grid’s big year: 2024 could be a make-or-break year for lawmakers, regulators and utilities to push through federal reforms aimed at making it quicker and easier to expand the power grid. (Canary Media)
💰 What’s stopping decarbonization: Upfront cost is the biggest barrier keeping people from making home energy upgrades like swapping out gas stoves, while lowering energy costs and environmental impact is a top motivator, a survey finds. (Canary Media)
🔋 The sunshine neighborhood: Every residence in an 86-home Florida development comes with solar panels and a home battery, ensuring none of its homeowners pay electric bills and offering a model for sustainable building. (Washington Post)
☀️ Solar tax swap: First Solar enters two deals to sell $700 million worth of federal tax credits, a first-of-its-kind transaction that will let the U.S. solar panel manufacturer quickly bring in money from domestic production incentives it could otherwise only use to trim its tax bill. (Canary Media)
🚙 Big cars, big emissions: Several automakers’ average fuel efficiency dropped from 2017 to 2022, largely because of the growing popularity of SUVs and pickup trucks. (Washington Post)
🔌 The EV incentives list is here: The federal government published a list of electric vehicles that qualify for $7,500 and $3,750 incentives, which can now be redeemed at thousands of dealerships. (Inside Climate News)
🏗️ Gas bans meet their end: A federal appeals court reaffirms its decision to strike down Berkeley, California’s ban on gas hookups in new buildings, invalidating other local gas bans in the 9th Circuit’s territory of 11 Western states. (Grist)
🥾 Electrifying tourism: An Alaska carbon offset program uses tourists’ donations to purchase electric heat pumps for local residents. (Grist)
EQUITY: Low-income households could benefit most from clean energy upgrades such as heat pumps and solar panels but often don’t have access to financing or government incentives. (New York Times)
SOLAR: The U.S. Energy Information Administration predicts 79 GW of new solar capacity will come online through the end of 2025, potentially making it the top source of power growth over the next two years. (Utility Dive)
STORAGE: Federal analysts also predict energy storage on the grid will nearly double this year, from 17.3 GW now to 31.1 GW by December. (Canary Media)
OIL & GAS:
HYDROGEN: The Biden administration’s proposed hydrogen incentive rules place strict emissions limits on green hydrogen producers but lack standards for natural gas-sourced blue hydrogen. (Canary Media)
COAL:
ELECTRIC VEHICLES:
CLIMATE: Climate-fueled storms, flooding and rising sea levels are bound to drive coastal U.S. residents inland, but elderly people are likely to be left behind, a study finds. (Grist)
POLITICS: The planned departure of several longtime U.S. House and Senate members who have played key roles in energy policy raises concerns about brain drain with the loss of their institutional knowledge on issues. (E&E News)
COMMENTARY: A clean energy columnist calls on journalists to stop sensationalizing clean energy-related bird deaths, pointing to a study finding oil and gas drilling is more harmful to avians than wind turbines. (Los Angeles Times)
NATURAL GAS: An energy company shutters a natural gas power plant in southern California after a city lobbies for decades to have it decommissioned. (Daily Breeze)
ALSO:
OIL & GAS:
BIOFUELS: Portland, Oregon, approves three proposed biodiesel pipelines at a fossil fuel terminal on the Willamette River as part of a company’s agreement to phase out crude oil storage at the facility. (Oregonian)
POLLUTION:
SOLAR: California advocates ask an appeals court to rehear their challenge of the state’s new net-metering policy slashing compensation for energy generated by rooftop solar. (San Diego Union-Tribune)
CLIMATE: A federal report finds the waters off Alaska’s Aleutian Islands registered the warmest winter temperatures in over a century, making the ecosystem a “bellwether for climate change.” (Alaska Beacon)
ELECTRIC VEHICLES: Federal labor regulators accuse California electric vehicle startup Lucid of illegally firing two employees for joining the United Auto Workers union. (Los Angeles Times)
URANIUM: The federal Bureau of Land Management permits a uranium mining company to begin exploratory drilling just outside Bears Ears National Monument in southern Utah. (Mining Technology)
PUBLIC LANDS: The federal Bureau of Land Management seeks public input on a proposal to lift some environmental protections from 28 million acres in Alaska. (Nome Nugget)
COMMENTARY: A California energy columnist urges readers to see the world through “climate-colored goggles” because human-caused global warming is pressing, immediate and terrifying. (Los Angeles Times)
HYDROGEN: The Treasury Department’s new hydrogen tax credit guidelines appear to favor Texas and states in the Midwest and Southwest, where wind and solar can be built quickly and cheaply. (Canary Media)
ALSO: The new hydrogen incentive rules raise questions about how the federal government will measure the industry’s emissions and account for the use of nuclear power and carbon capture in hydrogen production. (E&E News)
SOLAR: First Solar enters two deals to sell $700 million worth of tax credits, a first-of-its-kind transaction that will let the U.S. solar panel manufacturer quickly bring in money from the federal domestic production incentives it could otherwise only use to trim its tax bill. (Canary Media)
WIND:
STORAGE:
CLIMATE: A judge rejects a U.S. Justice Department bid to dismiss an Oregon youths’ lawsuit alleging federal policies contribute to human-caused climate change, allowing the case to move forward. (OPB)
CARBON CAPTURE: Communities across south Louisiana organize to oppose at least 20 underground carbon dioxide storage projects in the planning or development stages that also include a sprawling network of pipeline expansions. (Floodlight/WWNO)
ELECTRIC VEHICLES: Georgia saw a surge of electric vehicle and battery-related investment in 2023, driven by ongoing construction at Hyundai’s electric vehicle factory and amplified by federal funding and tax credits. (Atlanta Journal-Constitution, Savannah Tribune)
OIL & GAS: New Mexico lawmakers consider legislation that would ban new oil and gas drilling and phase out most existing production within one mile of schools and daycare centers. (Associated Press)
EFFICIENCY:
WIND: Louisville Gas and Electric and Kentucky Utilities build a utility-scale wind turbine in Kentucky to test the potential for wind power in the state. (Kentucky Lantern)
ELECTRIC VEHICLES:
SOLAR:
CARBON CAPTURE: Communities across south Louisiana organize to oppose at least 20 underground carbon dioxide storage projects in the planning or development stages that also include a sprawling network of pipeline expansions. (Floodlight/WWNO)
OIL & GAS:
GRID:
CLIMATE: A federal report on damage done by 2022’s Hurricane Ian finds newer homes survive better than older homes, with newer roofs as the single most important upgrade in damage assessments. (Miami Herald)
CLEAN ENERGY: A South Korean electronics company announces it will invest $700 million into West Virginia to develop renewable energy, telehealth and other technologies. (Associated Press)
HYDROGEN: Newly proposed rules governing development of the “green hydrogen” industry appear to favor Texas and states in the Midwest and Southwest, where wind and solar can be built quickly and cheaply. (Canary Media)
ENVIRONMENTAL JUSTICE: The U.S. EPA awards $50 million to environmental and climate justice organizations from New Orleans and Houston to reduce greenhouse gases and clean up their communities. (Verite News)
OVERSIGHT: Louisiana Gov.-elect Jeff Landry names an oil and gas industry executive to head up the state’s Department of Natural Resources. (NOLA.com)
WORKFORCE: A Texas nonprofit trains workers for the solar industry as part of its mission of “disrupting poverty through green career training.” (Dallas Free Press)
COMMENTARY: Louisiana is gearing up for a legal fight against a federal policy that could dramatically reduce greenhouse gas emissions even as the state tries to preserve its coastline against rising seas, writes a columnist. (NOLA.com)
OIL & GAS: A $25 million federal grant allowed Michigan to plug 200 orphaned oil and gas wells in 2023, nearly half of all known orphaned wells in the state. (MLive)
WASTE-TO-ENERGY: Youngstown, Ohio, officials halt plans for a facility that would convert recycled tires into synthetic gas in a neighborhood of predominantly Black residents. (Inside Climate News)
PIPELINES:
GRID:
SOLAR: Officials in southern Illinois advance plans to purchase a vacant, 123-acre cemetery that’s owned by the state for a solar project. (FOX 2)
RENEWABLES: Indiana-based NiSource sells a minority stake in its utility NIPSCO for $2.16 billion that executives say will help the utility invest in more renewables. (Times of Northwest Indiana)
COAL: The owner of North Dakota’s largest coal plant, which is set to close in the coming years, expands a partnership to recycle more byproducts from coal burning for future uses. (Bismarck Tribune)
OVERSIGHT: The U.S. Supreme Court and federal district courts are weighing several cases this year that could significantly limit federal energy regulators’ ability to oversee climate and infrastructure policy. (E&E News)
WIND: Consumers Energy begins operating a 72-turbine, 201 MW wind project in central Michigan. (FOX 17)
EMISSIONS: A northern Michigan city hopes to reduce its local methane emissions by enrolling more restaurants in a composting program that diverts food waste from landfills. (WDIV)
UTILITIES: Minnesota utilities continue seeking rate increases for grid investments and clean energy as inflation on services remains stubborn for consumers. (Star Tribune)
HYDROGEN: The Biden administration releases guidance for its hydrogen tax credit, though industry leaders say the rules go too far in prioritizing low- and zero-emission hydrogen production and will slow growth. (E&E News, Utility Dive)
ELECTRIC VEHICLES:
SOLAR: Solar advocates in Georgia and elsewhere embrace federal funding for programs to reduce energy bills by making solar power affordable for lower-income households. (WABE/Grist)
CLEAN ENERGY:
CLIMATE:
EMISSIONS:
PIPELINES: A proposed carbon pipeline in the Midwest divides ethanol industry supporters and farmers who say they feel betrayed by the company’s potential use of eminent domain to build the project. (South Dakota Searchlight)
GRID:
LITHIUM: The Reno-Sparks Indian Colony looks to build coalitions and garner public support — rather than file lawsuits — to fight the Thacker Pass lithium mine in Nevada. (Associated Press)
RESILIENCY: Although Massachusetts wants more municipalities to undertake climate resiliency projects, they say securing state funds to do so isn’t easy. (Boston Globe)
BUILDINGS: Maine’s heat pump market is already thriving, but new federal subsidies targeting low-income homeowners could further spur its growth. (Portland Press Herald)
CLEAN ENERGY: A $10 million federal grant will support economic development efforts in Ohio and neighboring states to help lure small- and medium-sized manufacturers specializing in the clean energy supply chain. (Energy News Network)
CO2 PIPELINES:
OHIO: The former FirstEnergy subsidiary that was to receive the bulk of a ratepayer-funded bailout for two of its nuclear plants says it acted in a “legal way” to help get House Bill 6 passed. (Ohio Capital Journal)
SOLAR:
PIPELINES: Environmental groups and four tribes will appeal Michigan regulators’ decision to allow plans for an underground tunnel for Line 5 in the Straits of Mackinac. (MLive)
OIL & GAS:
BIOGAS: Plans for a central Wisconsin anaerobic digester on a dairy farm divide local residents as critics raise groundwater pollution concerns. (Wisconsin Examiner)
COAL: Decommissioning units of a Wisconsin coal plant in the coming months will require complex steps to keep wastewater treatment, water intake and a conveyor system operational for remaining units. (Journal Sentinel)
UTILITIES: A new Illinois law that took effect on Jan. 1 prohibits utilities from shutting off power to customers when temperatures reach certain heat thresholds. (Southern Illinoisan)
GRID: North Dakota Gov. Doug Burgum declared a statewide emergency on Friday as thousands of residents experienced power outages when an ice storm dismantled power lines. (Associated Press)
CLIMATE: A new documentary explores researchers’ and advocates’ efforts to find climate solutions in northern Michigan. (Michigan Advance)
CLEAN ENERGY: A coalition of regional groups uses a $10 million federal grant to recruit more than 1,000 small and medium manufacturers for the growing clean energy economy in West Virginia and four other Appalachian states. (Energy News Network)
ALSO:
CARBON CAPTURE: The U.S. EPA grants Louisiana the authority to approve and regulate the drilling of wells for carbon capture projects. (Louisiana Illuminator)
SOLAR: Solar advocates in Georgia and elsewhere embrace federal funding for programs to reduce energy bills by making solar power affordable for lower-income households. (WABE/Grist)
ELECTRIC VEHICLES:
WIND: A Virginia city receives more than $39.2 million to renovate a marine terminal into an offshore wind logistics facility. (WVEC)
HYDROGEN:
GRID:
POLITICS: Virginia environmental justice advocates worry Republican Gov. Glenn Youngkin is hampering a 2020 law intended to boost transparency and engagement with communities affected by pipelines and other energy projects. (Inside Climate News)
OVERSIGHT:
COAL:
UTILITIES: West Virginia water and gas utilities spat over a line break and service outage last month. (Charleston Gazette-Mail)
As federal incentives spur a wave of new domestic clean energy manufacturing, economic boosters in Ohio and neighboring states see an opportunity to “Make it in Appalachia.”
A virtual summit this month will serve as part of public kickoff efforts to identify and support small and medium manufacturers in the region so they can play a role in the growing clean energy economy.
The New Energy Economy project is being funded by a $10 million federal grant awarded this fall. Lead applicant Catalyst Connection and ten other partners have been working over the past two months to finalize subcontracts for the effort, which encompasses 156 counties in Ohio, Pennsylvania, West Virginia, Maryland and New York.
“By supporting small-to-medium manufacturers and providing training and resources, we can drive economic transformation, create in-demand jobs, and build a brighter future for Appalachian communities,” said Steve Herzenberg, co-director of ReImagine Appalachia, one of the grant partners.
ReImagine Appalachia is hosting its virtual strategy summit on January 16 and 17. The first day will focus on how to turn the Ohio River Valley into a sustainable manufacturing hub, with discussions the next day focused on community rebuilding and workforce development under federal climate infrastructure programs.
The Appalachian Regional Commission is providing funding for the grant under the federal Bipartisan Infrastructure Law as part of its Appalachian Regional Initiative for Stronger Economies. ARISE supports multi-state projects to drive large-scale regional economic change.
The New Energy Economy project will provide training, technical assistance, supply chain mapping and guidance for factory and product upgrades to more than 1,000 small to medium-sized manufacturers over four years in sectors that include renewable energy, hydrogen, smart grid, green buildings, and electric vehicles.
“We want to identify and support companies that want to participate in a new clean energy supply chain or improve their factory in energy efficiency,” said Petra Mitchell, president and CEO at Catalyst Connection, based in Pittsburgh. Although much of Appalachia is rural, the region includes many towns and cities.
Mitchell said a wide range of businesses could benefit in different sectors. Planned hydrogen hubs, for example, will need lots of metal products and meters, she said. So companies making those types of things may want to think about how they could adapt existing products or develop new ones to serve that sector.
Similarly, lots of pieces and parts go into wind turbines, said Amanda Woodrum, another co-director of ReImagine Appalachia. “They’re made of things that we make already, like gearboxes and bearings.” The grant project can help identify companies that might be a good fit for making those things and provide technical know-how so they can gear up to expand.
Yet there are barriers to getting into new markets.
“Across the region, many small and medium-sized manufacturers lack the capabilities to participate in the supply chains for green energy production or green products manufacturing,” said Janiene Bohannon, communications director for the Appalachian Regional Commission. “Appalachian manufacturers and energy providers seeking to pivot to greener models face difficulties in post-COVID supply chain disruptions, labor shortages, increasingly dated facilities and technology, and lack of availability of training in said technology.”
Large manufacturers often have staff or can afford consultants to grow their businesses and navigate entry into new market sectors.
“Small companies rarely do this,” said Ethan Karp, president and CEO of MAGNET in Cleveland.
The nonprofit will be responsible for providing roughly $1 million in services to companies in Ohio counties covered by the grant. Other manufacturing extension partners will work with companies in the four other states covered by the grant.
More than half of the 32 Ohio counties rank among the 25% most economically depressed counties nationwide. Only two are “competitive” under the commission’s designation system.
“We can really make a difference there,” Karp said. “We’re going to retain a ton of jobs, and we’re going to strengthen the output and grow our communities.”
Work in the manufacturing sector generally pays better than low-wage jobs that have employed many people in Appalachia after other manufacturing jobs left the area and the coal industry declined over the past several decades. A significant number of people in Appalachia have also become disconnected from the workforce, Woodrum said.
Now, across the five states included in the grant, the project is expected to serve 1,100 businesses, create 5,500 jobs, retain 15,190 jobs and provide $44 million worth of cost cuts, Bohanon said.
“We already have a presence in these counties,” Karp said, adding that MAGNET has already done some work helping manufacturers find opportunities for energy efficiency. MAGNET provides its educational and consulting services free of charge. Companies then invest in projects that can save money or otherwise boost their profit margins.
Lots more outreach about the grant program will follow after the upcoming strategy session for ReImagine Appalachia. Among other things, that outreach will help companies in the region think about whether they can play a role in the clean energy supply chain, even if that role isn’t initially obvious.
“It doesn’t have to necessarily be high-tech stuff,” Karp said, adding that a lot of the shift will be market driven. So, as more electric vehicles come on the market, companies will want to think about how they can be part of that growth. Or, as there’s more electrification, manufacturers may want to think about products they could supply. And then companies will need more training and technical help to expand their businesses through capital investments, any workforce issues and more.
“With the right sustainable strategy and the right investments, we can actually turn the region into leaders in the new energy economy,” Woodrum said. “The kind of manufacturing and the jobs that it creates are a big important piece of that puzzle.”
Historically, “Appalachia’s been one of the most likely places for innovation,” said Rick Stockburger, president and CEO of BRITE Energy Innovators, based in Warren, Ohio, which is not part of the Catalyst Connection grant project. “There’s no structural reason why it can’t be again, especially as we’re thinking about this new economy and how we make sure everybody can participate in it.”
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