Investing in energy technology makes sense

By Mike Shout

Vindicator

Last week, Youngstown State University announced plans to install solar panels on the roof of the College of Engineering and Technology. This initiative, one of the largest clean energy projects of its type in northeast Ohio, is part of a campus-wide commitment to reduce energy consumption by 20 percent and save the university $500,000 per year in lighting costs alone.

This is a perfect example of a growing trend — as energy prices continue to rise, businesses, universities and households are looking at ways to reduce their energy consumption. Whether it is a business looking to improve their bottom line or a family trying to cut its monthly bill, people are looking for ways to reduce energy costs.

Home-grown help

While a comprehensive initiative by Youngstown State is to be applauded, imagine a systemic effort to shrink utility bills and make costs more predictable. Consumers would have more money to spend on things they enjoy, and businesses or universities would be able to save money and invest more in growing their industry or institution. So instead of sending $1 billion a day out of the country to buy oil from countries that are hostile to the U.S. — we would each be helping to grow local businesses and jobs.

Seems obvious, right? The reality is that we waste enormous amounts of energy, which is like burning cash. Research from McKinsey & Co. shows that the U.S. could save more than $1.2 trillion in wasted energy by 2020 through investments in commercial, residential and industrial retrofits — and this does not even account for savings from cars, trucks, trains, ships and airplanes.

Unbelievably, the U.S. uses nearly twice as much energy to produce a dollar of goods as its European and Japanese trading partners. We spend more to make less, which increases the cost of doing business and makes us less competitive.

Look at China

The fastest route to a more prosperous, secure economy for Ohio and our country is to eliminate energy waste and move to a clean energy economy. Other countries get it. China, for example, is investing $12.6 million every hour on clean energy technology. They want to own the global market and are on their way.

While consumers and businesses can do a lot to reduce their energy use, the real gains can come with the right energy policy framework. That is why we need Congress to set the right market signals by passing comprehensive climate legislation that puts a price on carbon and contains strong clean energy and energy efficiency standards.

The opportunity is in front of us. The Senate has introduced a long-awaited energy policy framework, but we need leadership from both sides of the aisle for passage.

It is not too late, but everyday they wait to act, opportunities for improvement are missed.

Mike Shout is President and CEO of Carbon Vision and member of the Ohio Business Council for a Clean Economy. Carbon Vision, based in Cleveland, will coordinate the solar installation at Youngstown State University.