Ohio Capital Journal News

Renewable Energy Faces Challenges in Ohio Despite Inflation Reduction Act

The Inflation Reduction Act (IRA) is boosting the renewable energy sector across the U.S. with its billions of dollars of incentives, stimulating the growth of solar farms and wind turbines. However, in Ohio, a state known for its hostility towards renewables, developers are working in a challenging environment.

Renewable energy prices in the U.S. are now on par with fossil fuels, thanks to the IRA: the biggest investment in fighting climate change in American history. Nevertheless, Ohio’s solar advocates and developers face a tough battle against misinformation spread by fossil fuel-backed opposition groups and a stringent regulatory regime.

Ohio’s Biased Treatment of Renewable Energy

Ohio’s policies create an uneven playing field that favors fossil fuels. Through Senate Bill 52, Ohio has given local governments the power to veto solar and wind farm projects. There are no such veto powers for fossil fuel initiatives.

This bill has had a chilling impact on solar projects in Ohio, where beliefs about climate change fall below the national average. The implementation of SB52 has spurred increasing resistance to renewable energy projects in many states, leading to significant local restrictions against wind and solar projects.

Renewable Energy’s Future in Ohio

Despite challenges, Ohio’s solar construction is set to rank third among the states by 2027. Factors like affordable land, sufficient sunlight, and a growing demand from data centers contribute to the potential of solar energy in meeting the state’s future power requirements.

The IRA’s role in reducing greenhouse emissions and creating significant financial incentives for climate and energy spending also supports the adoption of solar energy. The extended 10-year solar investment tax credit, for example, provides long-term policy certainty for the industry.

IRA’s Impact on Ohio’s Solar Industry

While the IRA stimulates the growth of solar projects, developers face obstacles such as regulatory hurdles, interconnection delays, supply chain uncertainties, tariffs, high interest rates, and inflation. However, the IRA has helped drive down costs and promote economies of scale, improving the economic feasibility of solar projects.

Several solar factories across Ohio have gained from the IRA’s investments, with companies like Illuminate USA, First Solar, and Toledo Solar already starting production. The IRA has also helped create jobs, fostering a positive sentiment towards renewable energy.

Hindrances to Solar Development in Ohio

Nevertheless, the IRA’s benefits for solar development are counteracted by obstacles like SB52. This bill has enabled counties to veto individual solar and wind projects and establish restricted areas where such projects are prohibited. With its implementation, several counties have set up restricted zones against solar energy. This selective regulation doesn’t apply to fossil fuel projects, further complicating the situation for renewable energy developers.

The negative impact of SB52 is evident: solar applications filed with the Ohio Power Siting Board have sharply decreased since the enactment of the bill and haven’t recovered since.

Anti-Renewable Sentiments Backed by Fossil Fuel Groups

Oppositions to solar projects in Ohio are often stoked by fossil fuel groups. For example, the Birch Solar project by Lightsource BP faced a strong backlash from residents who formed a group to oppose it. This group was reportedly advised by an anti-solar group called Citizens for Responsible Solar, which has alleged ties to the coal industry.

Similar patterns of opposition supported by fossil fuel interests have been witnessed for other projects like the Frasier Solar project in Knox County. This project faces opposition from Knox Smart Development, a group linked to the gas industry and the Energy Alliance, a dark-money group opposing renewables.

Despite these challenges, some believe the IRA’s benefits will help sway public opinion in favor of clean energy. Time will tell whether these incentives can overcome the roadblocks posed by regulations like SB52.