As a professional in the solar power industry, I’m frequently asked why Florida, the “Sunshine State,” doesn’t have an abundance of solar panels on its rooftops. While the sun’s rays fall generously on the state, our legislature and utilities have prevented the development of a renewable energy industry in Florida that would spur economic growth, create jobs, and draw investment. Indeed, a strong clean energy market is more about regulations and incentives than it is about sunshine and motivated consumers. This gap between potential and policy drives Florida-based renewable energy companies, such as mine, to seek work in other states.
Recent attempts to establish aggressive renewable energy incentives in the Florida Legislature similar to those that have created booming markets in California and New Jersey have fallen by the wayside. In 2007, Governor Crist backed a mandate for Florida’s utilities to increase their use of renewable energy to 20% by 2020, a requirement that would have propelled the state to become one of the nation’s top producers of clean power. The proposal was met with enough resistance from utilities and legislators to kill its potential before it even had a chance. Florida Power & Light and Progress Energy, two of the state’s largest power companies, argued that such mandates were too costly and would raise consumer rates. In the meantime, both utilities were planning to request their own rate hikes to cover the nearly 40 billion dollar combined costs for construction and expansion of risky nuclear power plants that had no guarantee of ever being built. Over this same time period, the State of New Jersey, known more for its cloudy skies and cold winters, increased its production of renewable energy exponentially, becoming the nation’s second leading producer of solar power behind California. Using similar mandates proposed by Governor Crist, New Jersey now attracts new investment and businesses on a daily basis.
Current debate in the Florida Legislature focuses on significantly scaled-back proposals which would allow local municipalities to create so-called “green energy corridors” through a financing mechanism known as Property Assessed Clean Energy (PACE). Under this program, property owners can install solar panels on their roofs and have the cost of the system spread out over several years as an additional item on their annual property tax bill. Other proposals under review would allow (not require) the state’s four major utilities to generate over 700 megawatts of energy from renewable sources over the next three years, without any clear guidelines or requirements dictating whether that energy will ever be developed, nor does it answer how, when, or where it will be built.
While these current proposals are a step in the right direction toward a green and prosperous future for Florida, they fall dramatically short of the foundation needed for a robust renewable energy economy in our state. While other states establish aggressive incentives and the federal government works toward national renewable energy standards, Florida will increasingly lag behind upcoming energy and economic trends. As a result, more companies and the revenue they generate will continue to spurn Florida and turn to those states that are seriously committed to a clean energy future.
Posted by Joe Naroditsky, Vice President of Operations and Market Research for BAM Energy Group, a Miami-based energy management company. www.bamenergygroup.com
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On July 13, 2007, Governor Charlie Crist signed three Executive Orders during the Serve to Preserve Florida Summit on Global Climate Change. The three Executive Orders “will guide Florida to reduce green house gases, increase efficiency and pursue more renewable and alternative energy sources, such as solar and wind technologies, ethanol and hydrogen.” The spirit of these executive orders was largely put into action in the 2008 legislative sessions culminating in many directives that will impact our clients and our practices in the years to come. Some of the highlights include the following mandates: All new state buildings must be built in accordance with the U.S. Green Building Council’s Leadership in Energy and Environmental Design for New Construction (LEED-NC) standards. Leadership in Energy and Environmental Design for Existing Buildings (LEED-EB) standards must be implemented for all existing state buildings. Florida’s 2008 Energy Act created a state definition of green building and started the ball rolling on several initiatives including increased energy efficiency in the Florida Energy Code and the legislative authority for the development of the Florida Renewable Portfolio standard. The Florida legislature passed on taking related action in the 2009 session.
