Save Cleantech Start-Ups to Save Jobs and the Planet
Progressive advocates and businesses throughout California and across the country are identifying critical shovel-ready clean and green infrastructure investments for the federal government to support that can put people back to work ASAP. While infrastructure investments are a natural stimulus, let’s not forget about the at-risk cleantech start-up companies that can create an exponentially higher percentage of high-growth jobs. These are the same businesses that are crucial to transitioning to the clean energy economy we need to meet the other existential crisis facing us. Unfortunately, right now these small businesses are struggling for capital to stay alive.
Today’s robust and cost-effective solar, wind and battery storage clean energy companies, along with our growing clean electric transportation sectors, grew out of decades of public investments in cleantech start-ups. We’re at risk of losing billions of dollars in federal and state grant investments in companies that have been developing promising technologies for the past 10 years or more. These technologies will create domestic jobs — including many manufacturing jobs — and they will accelerate our nation’s ability to innovate to tackle climate change, reduce energy costs and export these technologies to other countries.
Without a lifeline of support, thousands of these companies could go out of business before bringing their innovations to the marketplace. According to the National Venture Capital Association, “since March 11, 2020, about 300 U.S. start-ups have laid off about 30,000 employees across the country. This is likely just the tip of the iceberg for what will be tough times for start-ups over the coming months.”
One local Santa Barbara cleantech start-up, Next Energy Technologies, Inc., has licensed technology developed at UC Santa Barbara that allows them to manufacture transparent photovoltaics designed to advance the sustainability of buildings. They’ve created a product that turns windows into solar panels. Buildings account for more than 40% of global energy consumption. Next Energy’s window technology pays for itself in just one- year. It can help building owners and tenants dramatically save on energy costs while creating new glass manufacturing jobs. They are poised to help accelerate zero energy and carbon neutral buildings in cities throughout the U.S. and across the world. The Department of Energy (DOE) recognized Next Energy’s innovations with funding from its SunShot Tech-2 market program. With 30 employees on staff today, Next Energy is mobilizing demonstration projects and is within 12-months of manufacturing at scale a unique solar window product that can transform how buildings generate some of their own electricity.
There are more than 1,600 cleantech businesses that have received in excess of $1.6 billion from popular federal programs at the DOE and the National Science Foundation. By doubling down on these investments, we can save thousands of jobs that are immediately at risk and ensure that the tens of thousands of jobs this sector will create in the future will come to fruition.
The New York Times recently reported that the DOE is holding onto more than $40 billion in low-interest loan funds for cleantech and clean transportation projects. Just a small portion of those dollars could be redirected to support existing cleantech grantees with forgivable loans without Congress even having to appropriate any new stimulus funds.
As we support small businesses hard hit by the COVID shutdown, let’s be sure to prioritize public investments in companies that will drive innovation and put our country back to work tomorrow and in the tomorrows to come. Let’s lead with the future and throw these cleantech small business start-ups a lifeline. The future demands it.
Ruben Aronin, Senior Vice President, Better World Group
Director, California Business Alliance for a Clean Economy
