A close-up look at the solar panels used for the MGM Resorts Mega Solar Array during the launch of the 100-megawatt solar power facility Monday, June 28, 2021. The solar array facility will produce up to 90 percent of MGM Resorts Las Vegas daytime power.
Monday, June 24, 2024 | 2 a.m.
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Nevadans enjoy a little more than 250 days of sunshine a year, which allows for year-round activities, from hiking at Red Rock Canyon to skiing at Lake Tahoe. It also allows our state to rely on solar energy, which makes up 23% of Nevada’s total energy and is quickly becoming the preferred choice for clean energy.
But it extends beyond solely a solution to clean energy; solar also lowers cost for consumers, creates good paying jobs and reduces harmful pollution. It’s also becoming more accessible because the benefits of renewable energy are being brought to all communities with the goal of protecting our families’ futures.
Solar companies are entrepreneurs and generally get their start as small businesses boosting local economies by offering skilled jobs. However, this growth in innovation could all be on the line if a new Federal Reserve proposal to increase capital requirements on banks is enacted. While the primary goal of such a move is to enhance financial stability and reduce the risk of another economic crisis, there are concerns that this could have unintended consequences on certain sectors of the economy. As the chief operating officer of Sol-Up, an energy solution and conservation company, I feel uniquely qualified to weigh in on the potential impacts of these regulatory changes within the clean energy sector.
At Sol-Up, our mission revolves around offering renewable energy options to reduce carbon footprints and lower energy costs for consumers. By advocating for clean energy initiatives and supporting regulatory changes that align with our values, we aim to contribute to a greener and more vibrant economy. At the last legislative session here in Nevada, we supported and co-presented Senate Bill 293, a commonsense consumer protection bill aimed at combating deceptive trade practices that preyed on vulnerable consumers and have given a black eye to the solar energy industry. Restoring and protecting consumer trust and consumer access to solar energy has always been our top mission.
One of the primary concerns surrounding the elevated capital requirements is the potential impact on lending practices. As banks face higher capital standards, they may become more risk-averse, leading to a reduction in lending to sectors perceived as more volatile or capital-intensive, such as clean energy projects. This could stifle investment in renewable energy infrastructure, slowing down the transition away from fossil fuels and impeding efforts to mitigate greenhouse gas emissions.
Moreover, the clean energy sector relies heavily on access to affordable capital to fund innovation and expansion. By imposing stricter capital requirements, the Federal Reserve risks constraining the flow of credit to clean energy companies, impeding their ability to develop and deploy innovative technologies at scale.
It’s essential to recognize that investing in clean energy isn’t just an environmental imperative; it’s also an economic opportunity. The clean energy sector has the potential to drive job creation, spur economic growth, and enhance energy security. In a letter to the National Economic Council, the American Council on Renewable Energy (ACORE) stated that, “Substantially higher capital costs for banks could significantly increase the costs of clean energy projects and result in far fewer projects being built. Furthermore, carbon reduction goals may not be met, jobs could be lost, manufacturing could be stunted, and equitable access to clean, low-cost energy could be reduced.”
With the looming threat of catastrophic climate change, now is not the time to create barriers that impede progress toward a low-carbon future. Instead, policymakers should be implementing measures that incentivize investment in clean energy and facilitate the transition to a more sustainable energy system.
I look to Sens. Jacky Rosen and Catherine Cortez Masto to further demonstrate their respective leadership in the face of this climate crisis, like they have been doing thus far, by voicing their opposition to the proposal to increase capital requirements on banks.
Steve Hamile is chief operating officer of Sol-Up, a residential and commercial solar company that has been operating in Nevada since 2009.
