Don’t Overlook Ohio’s Solar Economic Potential

July 23rd, 2009
Tags: advanced energy, AEPS, higher education, Ohio, solar power, workforce

By: Matt McQuade, Ohio Business Development Coalition

Today, more than ever, states, regions and communities are placing a strong emphasis on attracting advanced energy investment. In this rapidly growing industry, Ohio is in a strong position to attract new companies, expand existing ones and transition suppliers that have historically served other industries. Ohio’s success can be seen through accolades from 3rd parties such as Site Selection magazine and Pew Charitable Trust where Ohio has ranked 1st and 4th respectively for total alternative energy investments and job growth.

When telling Ohio’s alternative energy story, wind energy tends to receive much of the focus. This is understandable, given the fact that Ohio is home to over 100 active wind suppliers. The state’s concentration of bearing manufacturers, foundries, fabricators, machine shops, fasteners, controls and other components makes it an ideal location for wind suppliers and turbine manufacturers. In fact, Ohio’s existing supply chain has gained it the distinction of being the #2 state in the U.S. for wind manufacturing potential. Wind energy, however, does not exclusively tell Ohio’s advanced energy story (nor does any other individual technology). Ohio is also positioned for substantial success in solar energy.

As in the wind industry, Ohio’s manufacturing strength separates its solar potential from other locations around the world. Many of the state’s existing manufacturers that historically served other industries have been and can be retooled to also supply solar OEMs. This competitive advantage is accentuated by the skilled workforce that is already in place to produce solar components. Ohioans that previously worked in the glass industry are transitioning to producing photovoltaics.

This is perhaps most evident in Northwest Ohio, where a history of manufacturing excellence in glass technology has transformed into one of the leading regions in the nation for thin-film solar production. A leading factor in Northwest Ohio’s solar industry growth, and perhaps the area in which Ohio most separates itself from other states in, is higher education. Through initiatives such as the $1.6 billion Ohio Third Frontier, in partnership with the state’s universities, Ohio is advancing solar research. The Wright Center for Photovoltaics Innovation and Commercialization (PVIC) is a state-funded collaboration between three Ohio universities that provide a world-class science and technology platform employing second and third generation photovoltaics materials tailored primarily for applications in clean energy generation. Successful companies such as First Solar, Inc. and Xunlight Corporation were spin-offs from the University of Toledo, which has been pioneering advancement in the solar industry for years.

Ohio lawmakers worked across the aisle to create the third most aggressive advanced energy portfolio standard (AEPS) in the nation, requiring 6,000 megawatts of new renewable capacity by 2025. Ohio’s AEPS constitutes a substantial market for solar generation in Ohio, given that at least 50% of the required renewable component must come from within the state. These benchmarks may even be exceeded when considering Ohio’s distribution capabilities to large concentrations of population on the east coast and in the Midwest. If solar power is being generated in large quantities in Ohio, solar manufacturers will locate in close proximity to supply the demand for generation capacity.

Assets that make Ohio a prime investment location for other industries also lend to its attractiveness for solar energy. Such features include the state’s location, transportation infrastructure, skilled workforce, reformed tax structure and manufacturing strength. In the solar industry specifically, Ohio sets itself apart through its universities that successfully research and develop new technology, spin-off companies and place educated individuals into the workforce. Ohio’s higher education excellence is boasted by initiatives such as the $1.6 billion Ohio Third Frontier and Advanced Energy Jobs Stimulus program. Finally, Ohio’s AEPS, utilities and distribution capacity constitute a substantial solar energy demand. Although Ohio’s story in the solar industry is less known, the state is ahead of the curve and poised to capture millions in capital investment and thousands of new jobs.