Making the case for cooperatively owned solar

Reliance on fossil fuels is a losing strategy. The continued release of greenhouse gases will only bring us closer to the destruction of our planet, which we are already experiencing first hand with rising sea levels, ocean acidification, heatwaves, and superstorms, just to name a few examples.

Florida has an opportunity that very few other geographic locations have: access to strong sunlight. This makes Florida a prime candidate for solar energy.

Everyone already knows this; we are the Sunshine State after all. Residents of Florida are increasingly investing in solar energy for private use, but this has yet to translate to the state level.

Beyond tax incentives and rebates, the state of Florida has not pushed to address the global standards set at the 2016 Paris Climate Accord. While the U.S. as a nation has pulled out of this agreement, some states and cities have pledged to still follow these guidelines. Some of these cities are even in Florida, most notably Orlando. With private investment in solar continuing to rise and the city of Orlando pledging to cut emissions and transition to renewables by 2050, there is an opportunity for our city to lead the way into the future through private investment in public solar energy.

Solar is a great investment in Central Florida for several reasons. It is good for the environment and for our 100 percent renewable energy goal; it is a good use of rooftop space in urban areas; and it is a great investment opportunity. Using the current Federal Treasury 10-year bond as a baseline, solar outcompetes both bonds and real estate investment in Orlando. In 2018, real estate prices increased by 7.7 percent in Orlando, which is a 110 percent return over 10 years. Investment in solar provides annual energy savings of 9 percent of the initial investment. So over 10 years, solar provides a 137 percent return.

The benefits do not stop after just 10 years, either. Most solar panels come with a 20-year warranty that states that the panels will still be producing at least 80 percent as much energy as when they were first installed. Using a best-case scenario, solar panels pay for themselves almost three times over in their 20-year life span. Worstcase, the panels are replaced under warranty and still at least pay for themselves.

These numbers are, however, based on the premise that energy prices will stay constant over the next 20 years. If there is one thing that Americans know it’s that energy prices are constantly changing.

The peak times of energy usage are often the middle of the day. The advantage that personal solar has in this situation is that energy generation is the most efficient in the middle of the day. So even if the A/C temperature is cranked way down and demanding a lot of energy, solar panels can meet the demand. As for large arrays, the initial investment is nothing compared to, say, an oil pipeline. So even if energy prices crash, investors won’t be hit nearly as hard.

So what can we do about this right now? Moving back to the idea of using rooftop space in downtown Orlando, private cooperative ownership of solar arrays on public or private buildings provides incentive for investors as well as moves Orlando toward its goal of 100 percent renewable energy by 2050.

A good initial candidate could be the Dr. Phillips Center for the Performing Arts. Investors would be able to make money from the energy savings that solar provides while the Dr. Phillips Center would be partially powered by renewable energy. Solar energy is a win for the economy, a win for the planet, and, if we allow it, can be a win for our city.

The author is a sustainability major at the University of Florida.