Fuel for Change
Houston’s economy is intertwined with a finite resource. Houston employs 1/3 of all of the nation’s oil and gas extraction jobs. Since the beginning of the recent decline in oil prices (down 72.38% June 2015-present), 10,200 jobs (9.6%) have been lost in mining, manufacturing, architecture, and engineering, all tied to the oil and gas industry [8]. While this might seem like a large portion of the local economy, it is nowhere near the 53,600 lost jobs (46.3%) that the oil crisis of the 1980’s (down 70.71%) brought to Houston [8]. Houston’s economy has diversified since the 1980’s and should be exploring diversification through the current low in oil prices.
Houston is a fantastic place for a renewable energy project. There are local professionals at all levels who know and understand the energy markets. Our populous is waiting to create the competition necessary to grow a new industry in the free market, but breaking into this market is a challenge. High overhead costs, logistical challenges, and the complexity of the systems have held consumers and small businesses alike to avoid the industry. |
Starting the Cycle
Lower overhead costs could spark a supply and demand cycle of growth that could sustain itself if the project is executed in a way that fits our population. By reducing costs a demand-pull is created, shifting the market towards more sustainable energy production [9].
Our educational work study program offers benefits for further innovation and competition. By reducing the private cost of creating innovation, a technology-push is created in the supply and demand cycle [9]. Multi-level tax incentives with established time frames and monitoring reach businesses and customers from all walks of life, ensuring market equality. |
Turning Innovation into Growth |
Gears of innovation [10]. |
Innovation drives sustainable growth. It provides a platform for job creation and encourages education on a broad scale. Multi-level incentives have fed the renewable energy industry, but the lack of demand has placed a ceiling on its growth [9]. In an oil driven economy, such as Houston’s, a resistance to transition to alternative energy is to be expected, but the fact remains that oil is a finite resource. In order to retain the title “The Energy Capitol of the World” well into the future, Houston must broaden its range of resources. Encouraging consumers adds a missing piece in the cycle of innovation.
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A Market in Motion
Inertia is a major hindrance in the solar market. It takes roughly two years or more from initial inquiry to installation for the average customer. The Solarize Portland project reduced that time to around three to six months [11]. By offering a competitive price for a limited time, customers and installers were forced to accelerate their pace of business. A program like the one we have proposed could get inertia to work in favor of a sustainable market. This chart shows the growth of the independent sector after a governmentally funded program with support from a non-profit called “Solarize Portland” was implemented. Although there was a decline in 2011 due to reduced campaigning, the independent businesses continued to grow and took a larger share of the solar market [11].
This chart shows annual residential photovoltaic installations per year in the independent market and performed through the Solarize Portland Campaign [11].