South Carolina Businesses Want More Renewable Energy
More and more businesses in the United States and abroad are committing to reduce their greenhouse gas emissions through renewable energy targets. As South Carolina continues to attract numerous corporations to establish operations here in the Palmetto State, it is important to understand what small and large businesses say they need to invest in South Carolina. In short, for South Carolina to continue competing for business and not miss out on future economic opportunities, the Palmetto State must get serious about helping businesses meet their greenhouse gas reduction targets.
CVSC partnered with Furman University to explore business demand for renewable energy and barriers to clean energy access in South Carolina. The link to the full report can be accessed here.
Furman analyzed 37 corporate sustainability reports published by companies that employ more than 1,000 people in South Carolina and conducted interviews with representatives of 21 businesses in the state.
The main takeaway?
Businesses in South Carolina are increasingly seeking access to local renewable energy.
So what are the barriers?
Over 30 business concerns were cited that loosely fit under the theme of state energy policy. Companies had concerns surrounding a lack of policy options to support their energy goals and restrictions on how much renewable energy they could produce onsite.
Don’t take CVSC’s word for it. Read on to see exactly what businesses say (all quotes are anonymous for privacy reasons).
- “We were working with [the utility]. It was extremely cumbersome in terms of trying to understand how our rates would be affected…We were trying to do much more than 1 MW but were limited by the caps of what the utility companies were willing to pay us based on the rates. Based on some incentives, you’re capped at 1 MW and also capped on a percentage of your historical usage.” – anonymous business
- “Someone who uses a lot of electricity to demand renewables…now, they have to go to the utility, and say ‘I want renewables on site, I’m working with a developer, etc.’ In other markets, it is possible, but you can’t do that in SC, because you couldn’t flow power to and from the grid. We need net metering to allow firms to produce excess power and sell to the grid. That would fundamentally change power demand and installs in SC. This would provide a revenue story that supports economic return.” – anonymous business
- “Soon, us companies that can’t meet our commitments will be able to blame states and policymakers. No longer can you pin down a CEO of any sizable company and ask them to prioritize one over the other, comparing tax, prices, and renewable energy. It isn’t just tax structure that keeps you there.” – anonymous business
Where can South Carolina improve?
The companies also identified various opportunities to attract economic growth and keep existing business in South Carolina by strengthening the state’s position in the renewable energy sector:
- Reform South Carolina’s monopoly utility system to allow more choices for in-state renewables
- Loosen limitations on how much electricity companies can produce from on-site renewables by changing the state’s ‘net metering’ rules
- New and expanded incentives for customer-sited renewables such as tax credits
- Fair and stable rates to support clean energy access for small businesses instead of variable rates from utilities
- Support the electric utilities’ transition to carbon-free grids by 2050 to ensure that utilities are meeting 100% of companies’ electricity needs with renewables within the timeline they need to align with corporate sustainability standards
To summarize, CVSC interprets these results as a unique opportunity to foster continued economic development by increasing business access to in-state clean energy. New state policies should remove barriers and support business investment in clean energy. This would not only address business needs in our state, but also help to address South Carolina’s increasing energy needs while reducing pollution and promoting clean air, land, and water in the state.
For more information:
John Brooker, Energy Policy Director, CVSC
[email protected]
The Shi Institute for Sustainable Communities, Furman University
[email protected]