Clean energy sector seen growing in R.I. faster than overall economy

(Updated, 5:55 p.m.)
PROVIDENCE – In an inaugural study of Rhode Island’s clean-energy industry, the state is recommending a number of steps be taken to help further expand the sector.
The report, dubbed Rhode Island Clean Energy 2015 Industry Report, was conducted by the R.I. Commerce Corp. and the R.I. Office of Energy Resources along with California-based research company BW Research Partnership. In a joint letter from Marion Gold, OER commissioner, and Stefan Pryor, Rhode Island’s secretary of commerce, the duo lauded the clean-energy industry and its job growth in recent years.
“Investments in this growing part of our economy will create jobs, expand opportunities for small businesses, and reduce our state’s carbon footprint,” Gold and Pryor wrote in the report. “We must also continue to work closely with private and public stakeholders to create clean energy jobs to spur economic growth, increase the reliability and security of our energy supply, reduce energy costs, mitigate price volatility and improve environmental quality.”
The report says the clean energy industry supports 9,832 jobs across 1,295 business establishments, representing a 6.6 percent increase – or 613 new jobs – compared with the same period in 2014. The annual growth rate was more than 3.6 times better than the state’s overall employment growth of 1.8 percent and the report projects an additional 1,600 new workers will be added to the industry by 2016.
Gov. Gina M. Raimondo lauded the industry in a statement, saying it will help the state come into line with goals outlined by President Barack Obama in his Clean Power Plan, calling on states to reduce carbon pollution from existing power plants.
“This growth in the clean energy economy is encouraging and represents a sector on the move,” Raimondo said.
The primary data used in the report is from 678 survey responses taken between April 15 and May 1. The numbers carry a combined margin of error of plus or minus 3.4 percent.
The largest portion of survey participants, 71.1 percent, believe financial incentives have the greatest impact on the adoption of clean energy and services, while 22.1 percent say the lack of financial incentives are the largest barrier to company growth. Another 21.7 percent of participants recommend the state create more incentives for the industry, which was the No. 1 response.
The research team recommends the state focus on continuing and expanding programs that incentivize clean energy technologies among consumers. Currently, there are only a few incentive programs offered, including the Renewable Energy Fund, a fund that provides grant and loans to residents, businesses, nonprofits and municipalities for renewable energy installations and feasibility studies.
There is also a 30 percent federal tax credit, which is set to end in 2016, and a state sales tax exemption for renewable energy equipment. The state recently launched the Renewable Energy Growth program in conjunction with utility National Grid PLC, which pays customers for whatever excess solar generation they can pump back into the state’s electricity grid.
The report further recommends the state should consider developing export and innovation segments of the industry, as in-state manufacturing and sales could benefit from increased access to out-of-state markets. Currently, 68.1 percent of participants reported having primarily in-state customers.
There’s even a suggestion that the state could help maximize talent potential by developing business incubators, facilitating technology transfer and assisting startups, but doesn’t map out exactly how this would be done. With more than 60 percent of participants reporting difficulty in finding and hiring candidates, the report recommends the state collaborate with employers to develop meaningful career pathways and training programs.
“Talent development will serve the growing industry’s need and provide sustainable careers for under- or unemployed residents,” according to the report.
In their letter, Gold and Pryor say that while 36.6 percent of clean-energy hires in the past year were ethnic or racial minorities, 21.8 percent were older than 55 and 14.6 percent were veterans, which “is representative of Rhode Island’s diverse population.”
However, women comprised 21.2 percent of those hired in the last year, according to the report, leading to a call for more women to be hired.
Pryor, who was hired by Raimondo to help improve the state’s economy, says there are a number of initiatives in this year’s budget “to attract new businesses to Rhode Island and to assist the businesses that are already here,” he said, which includes the governor’s R.I. Infrastructure Bank.
The report, whose $40,000 cost was split between the OER and Commerce RI, is designed to be an annual appraisal of the industry, according to an OER spokesman.

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