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average of $17,000 more than comparable homes without PV (Hoen et al., 2011). And despite being restricted by local laws, landowners that lease their property to project developers for wind, solar, geothermal, or hydropower are often able to profit. The City of Chicago, Illinois, leased a 40-acre plot of former industrial land (land with limited reuse value) to its local utility to build a solar farm and will bring in $110,000 in revenue per year through the arrangement. The City of Las Cruces, New Mexico, is also working on a solar land lease and stands to earn $2.3 million over the life of the project. Improved Regional Economic Competitiveness A new renewable energy market can also stimulate regional economic competiveness by inducing new private capital investments. According to Bloomberg New Energy Finance, in the year ending June 2011, new investment in clean energy rose 22 percent (now at $41.7 billion globally) (Downing, 2011). A successful renewable energy market would help stabilize long- term energy prices, acting as a hedge against rising electricity rates. Reliance on energy imports would also be reduced, thus saving ratepayers’ money. A manufacturing firm, for example, may choose to locate in a region with abundant clean electricity to avoid costly environmental controls or regulations. Finally, the existence of one or two renewable energy businesses in a region can create a clustering effect of companies that operate up and down the supply chain. All this helps to make a region more economically attractive, and therefore competitive. Market Drivers and Best Practices Although renewable energy’s role in the U.S. energy economy is highly publicized and hotly debated, it is still an emerging phenomenon, facing formidable obstacles in achieving scale. In the absence of a national clean energy standard (or other national standards that mandate rate design, job training, permit issuance, financing underwriting criteria, etc.), fragmentation persists. The primary result of fragmentation is increased cost to implement renewable energy. In the absence of national standards and/or transparent processes, the time it takes each state and/or authority having jurisdiction (AHJ) to design individualized policies and programs drives up the cost of implementation. It also increases the level of complexity for renewable energy contractors, as each state and/or AHJ may operate under different rules and regulations (again, increasing the cost of the renewable energy system). Even though some renewable energy technologies, such as solar, are rapidly becoming more affordable (and in some U.S. states are equally as affordable as conventional fuels [Matz, 2010]), the high cost of renewable energy is still a barrier in most parts of the country. Renewable Energy Best Practices in Promotion and Use — Andrea Luecke — Page 14PDF Image | Waste Heat Recovery and RPS Policies in the US
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