Florida's renewable transition could benefit substantially from direct stimulus

Advanced Energy Economy (AEE) has released a new report today quantifying the potential economic benefits of significant solar, EV and energy efficiency investment in Florida, and now organization directors are arguing that such investment may be key for the state's economic recovery following the COVID-19 pandemic that has devastated its economy.

According to AEE policy principal Ebo Entsuah, Florida is already "well-positioned to leverage the economic benefits of advanced energy technologies, particularly in efficiency, solar energy and electric vehicles."

"With more than 180,000 employed in the sector and a broad range of established companies, we can ensure advanced energy is a reliable economic driver for years to come while delivering secure, clean, affordable energy for all," Entsuah said.

To examine the scope of the benefits that would come with public investment in the renewable energy sector, AEE's report examines a hypothetical investment of USD 45bn across the solar, EV and energy efficiency industries. The conclusions are promising; the report finds that such an investment would attract USD 115bn in additional private investment, increase local and state tax revenues by USD 10bn while saving consumers USD 5bn in annual energy costs, create 1.5m jobs and add USD 174bn to Florida's economy. Solar alone would account for USD 43bn of that economic growth and nearly 300,000 new jobs.

"As Florida, like the rest of the nation, suffers the economic impacts of the coronavirus health crisis, this report shows investment in advanced energy delivers a solid four-fold return to our state's economy, creating in-state jobs and additional tax revenues," Entsuah said. "Such public stimulus also attracts billions of dollars in private investment and saves consumers billions annually."

So what's stopping Florida from making what appears to be a very sound investment in renewable energy? While the state has previously failed to capitalize on its own renewable energy demand and potential, there are new indications suggesting that the state is moving in a positive direction.

A previous report published by AEE late last year analyzed how Florida was squandering its potential as a solar leader in the U.S. That report concluded that the state could triple its solar deployment by simply meeting its own commercial and industrial demand, a development that AEE director Dylan Reed now sees as inevitable.

"You're going to be seeing that shift," Reed told New Project Media. "Not only does investing in solar make economic sense, but consumers really want it."

AEE's Managing Director J.R. Tolbert agrees, pointing to several recent policy gains made in Florida that are helping to push the state in that direction. This includes the PSC's approval of Florida Power and Light's Solar Together program, which is projected to add 7.5 GW of new solar generation, and the state legislature's passage of SB 7018, which Tolbert says will "spur investment in EV charging infrastructure" across the state.

"In sum, we believe Florida has been ripe for job growth for years," Tolbert said. "Now that the legislature and regulators are fostering a policy environment that facilitates these jobs, the Florida market is poised to be a leader in the economic recovery from COVID-19."

Entsuah agrees, adding that such stimulus may actually be critical for the state's economic recovery.

"By investing in energy efficiency and solar energy while accelerating the shift to electrified transportation, we can generate economic activity in the state's hardest hit communities while also helping Florida transition to cleaner energy resources," Entsuah said.