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Rhode Island may be the smallest state in the nation, but it is making a big splash regarding the future of green energy in the United States.

On June 29, 2022, Governor Dan McKee signed legislation that puts the Ocean State on pace to be the first in the U.S. to reach 100% renewable energy. The law requires that by 2033, 100% of the state’s electricity be offset by renewable energy. Although the law doesn’t prevent using fossil fuels for energy production or use, they will be offset by clean energy sources like wind, solar, and geothermal.

According to Gov. McKee’s office, the new law is expected to create thousands of new jobs while cutting the cost of renewable energy across the state.

“We’ve seen a 74% increase in green jobs since 2014, and that trend is going to continue as we deepen our commitment to renewables,” State Rep. Deborah Ruggiero said in a statement. Ruggiero anticipates thousands of new jobs to come online to support renewable energy sources that will come online over the next several years.

Blueprint for Success: Incremental Increases to Reach Renewable Goals

If Rhode Island wants to be the first to reach 100% renewable energy, it needs to invest in emerging forms of electricity production. This will likely mean leaning more into geothermal energy, wind energy, and developing solar energy systems that take efficiency to another level.

One way to encourage more renewable energy is by turbocharging green initiatives. Under previous state laws on the books, the state was annually increasing the percentage of renewable energy generated by 1.5 percentage points. Under the newly signed law, the number picks up speed each year until reaching a 100% Renewable Energy Standard in 2033.

According to the law, the Renewable Energy Standard percentage will increase by 4% in 2023, jumping by one percent annually through 2026. The increases then become smaller, staying flat in 2027 and then rising by a half percent each year through 2032.

So, how does the new law work? Each year, utilities must buy renewable energy certificates for a certain percentage of power sold annually. These certificates help offset the amount of energy produced and sold by traditional fossil fuels in the state. Besides the certificates, the law also leans on renewable energy producers to up their production using everything from solar energy technologies and offshore wind to hydroelectric facilities and other sources.

What Does Energy Look Like in Rhode Island Today?

It might seem like a lofty goal for any state, but Rhode Island has an opportunity to make some waves.

U.S. Energy Information Administration (EIA) data suggests Rhode Island uses the least energy per capita in the U.S. The state also produces about 90% of its current electric supply using natural gas, the highest percentage in the nation. Only about 12% of the state’s energy came from renewables, with half coming from solar panels.

While it’s encouraging to see such an aggressive clean energy law on the books, there is certainly work to be done. In March 2022, for example, Rhode Island’s renewable energy production reached about 79k MWh, a far cry from the 478k MWh produced by its natural gas-fired plants.

The data paints a picture of a state in transition. Renewables aren’t a major energy producer in the state yet, but current production is still four times more than it was in 2018. Rhode Island is also an environmentally conscious state, pumping out the second-lowest CO2 emissions in the nation, only behind Vermont.

Solar Goals in the U.S.

Rhode Island is not the first state to push for a 100% renewable future. California was among the first to lean into clean energy, but states on both coasts are now getting involved using the blueprints laid out by early adopters.

It will take years to wean ourselves from fossil fuels – it also won’t be likely to turn our backs on such efficient forms of energy. Thankfully, renewables are rising in popularity, and their efficiency is expected to increase as innovations are achieved.

The improvement isn’t hard to see, either. In 2021, renewable energy sources totaled about 20% of U.S. electricity; it could increase due to recent tariff exemptions enacted by the Biden administration. The two-year exemption is expected to keep several upcoming solar projects on track while reducing the number of delays and cancelations over the next 18-24 months.

Companies like Sun-Pull Wire are also ready to do their part to ensure the solar industry grows as quickly as possible. This means producing solar photovoltaic (PV) bundled wire systems that are easy to install, simple to use, and can be done using fewer workers to address labor shortages or take on even more projects.

Ultimately, the goal is to make widespread utility-scale solar arrays a possible and affordable option throughout the United States.

Rhode Island’s Investment in Renewables is Important

Yes, Rhode Island is a small state, but being successful could prove that fully renewable energy is no longer a pipedream. It’s a tangible goal that can be reached with radical transformation and aggressive building toward the finish line.

The law is aggressive but also puts Rhode Island on the cutting edge of the renewables curve. Their commitment to green energy is launching it ahead of other states like California, New York, and North Carolina.

It should come without saying that the solar industry is excited to see what a renewable future looks like. We’re ready for whatever might come next and excited to help serve everyone’s solar needs today, tomorrow, and for years to come!

Business is looking a little sunnier for U.S. companies, thanks to several encouraging announcements from the White House.

In June, President Joe Biden announced a 2-year exemption for solar imports, lifting restrictions on solar products coming in from four Asian countries; Cambodia, Malaysia, Thailand, and Vietnam. The announcement follows in the footsteps of an investigation launched in March regarding anti-dumping regulations imposed by the U.S. on China several years ago. Although the tariff exemption is big news, it does not apply to China or Taiwan, which both still have their tariffs in place.

Asia is a massive player in the solar panel industry. In fact, upward of 80% of the solar panel imports come from Asia, meaning that America’s solar goals are somewhat contingent on having a relationship with our overseas trading partners. Pausing tariffs on incoming solar panels helps utilities and other companies that had paused their plans to restart the process.

Besides the exemptions, the Biden administration also invoked the Defense Production Act (DPA). This opens the door for additional government investment in clean energy projects, including solar. According to the Department of Energy (DoE), this money is for companies to expand clean energy manufacturing, build new facilities, and help consumers access greener products.

The hope is that with more investments, U.S.-based companies can boost domestic solar panel production so the country can rely less on imports. As the DPA effort ramps up, the 2-year tariff will serve as a temporary solution to give domestic manufacturers a chance to make enough supplies to catch up to what is imported.

Who Stands to Win with Tariff Exemptions?

As with any governmental announcement, there will be winners and losers. In this case, several clear winners emerge in the near- and long-term.

Domestic Companies with Solar Projects

Tariffs have a contentious and complicated history in the United States, often acting as a defensive mechanism used by countries to protect domestic manufacturing. Unfortunately, what typically happens is that consumers get saddled with higher prices associated with the tariffs, and production doesn’t always keep up.

With solar tariffs in place, products like solar panels become more expensive, making it harder for companies to fund previously planned projects. As a result, some planned projects were either delayed or outright canceled.

According to the Solar Energy Industries Association (SEIA), the organization cut its solar installation forecast by half in 2022, mainly due to supply chain issues and uncertainty related to the government’s investigation into possible Chinese anti-dumping tactics.

By cutting at least a little of the bureaucratic red tape, the U.S. is giving domestic companies a chance to complete their solar projects with fewer costs and more certainty. Although the eased restrictions aren’t going to bring back previously canceled projects, there is a chance that delayed projects could get back on track.

The move can’t come soon enough, either. SEIA recently reported about half of all energy added to the grid in the first quarter of 2022 was solar, so there is an appetite for renewable technology.

Domestic Solar Manufacturers

Although the tariff exemptions are meant to ease import costs for solar panels, the activation of the DPA is designed to spur solar manufacturing stateside.

The White House announced in June with additional government support, domestic solar manufacturing was on pace to triple in 2024, going from a current manufacturing capacity of 7.5 gigawatts to 22.5 gigawatts by the end of 2024. This would be enough production capacity to help more than 3 million homes convert to solar energy production annually.

June’s DPA announcement bolsters the production of several solar components, including photovoltaic (PV) modules. The resulting products will give companies domestic options that don’t need to be imported or subject to tariffs. The announcement and expected production increase is also fantastic news for companies that produce other solar components used in solar arrays, including Sun-Pull. Our wire is used to string solar panels together, letting generated electricity flow back to the combiner box.

Perhaps the best part of the tariff exemptions and DPA announcement is that thousands of jobs associated with the solar industry won’t be eliminated. There’s even optimism that solar jobs will increase due to more projects.

Although this is fantastic news for stateside manufacturers, there’s some reason for concern. It’s worth knowing that earlier tariffs imposed to bolster domestic manufacturing have not always resulted in increased production.

The Environment

It’s no secret the United States has climate goals it wants to reach in the coming years, including a series of renewable energy benchmarks in 2035.

The first quarter of 2022 was not particularly great for utility solar energy as only 2.2 GWdc was installed. According to SEIA, it was the weakest quarter of growth in two years and was a far cry from what was considered a strong finish during the final quarter of 2021.

Adding to the problem is the March investigation into China possibly skirting anti-dumping regulations by sending materials to other Asian countries. A month before, Auxin Solar, a small manufacturer, asked the government to investigate the situation, leading to even more uncertainty. The political climate made moving forward with some projects risky, leading to 17.6 GWdc worth of solar projects becoming delayed by a year and another 450MW canceled.

Fewer tariffs, on the other hand, mean domestic companies can once again import low-cost solar panels to complete their projects. It also means current projects can proceed as scheduled with fewer delays, and new projects can get off the ground to bring more solar energy online.

More solar energy is great news for the environment because it lessens our dependency on fossil fuels and other carbon dioxide-emitting power sources. Of course, ramping up the solar industry isn’t like turning on a faucet. It will take months, if not years, to get back up to speed. However, the tariff exemption may go a long way toward getting us started until domestic manufacturers can catch up and bring their own products to market.

What Do We Expect?

It’s tough to look at the tea leaves and find a definitive answer to what we think might happen. Still, the tariff exemptions are a good sign for Sun-Pull and the entire solar industry.

Removing tariffs for a few countries doesn’t fix all the issues we’re currently facing. It won’t be easy for domestic manufacturers to compete with low-cost imported options overseas, but it can be done. The announcements do give manufacturers a much-needed fighting chance, allowing them to meet increased solar needs from a growing number of Americans.

Companies like Sun-Pull Wire are poised to make the most of solar’s growth, with bundled wire systems that will carry the future of energy to millions of Americans across the country. We’re looking forward to seeing brighter, cleaner, and more sustainable energy take the next step.

Tag: solar energy

Rhode Island Sets Stage for 100% Renewable Energy