Clean-tech sector wary of Trump effect, believes states, businesses will carry load

Colorado’s clean-tech industry is prepared for changes to energy and environmental policy from the Trump administration — but many aren’t sure what exactly to be prepared for.

President Trump has made it clear that clean energy isn’t his biggest priority — recent actions include scrapping the Clean Power Plan and bowing out of the Paris Climate Agreement.

But so far, no actual policies have really come into play, which means many Colorado clean-tech companies are still waiting to see what those gestures actually mean for business.

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“It’s hard to predict what’s going to happen,” said Blake Jones, co-founder of Boulder-based Namaste Solar. “One way to look at it is the Clean Power Plan and the Paris Agreement both would have provided additional wind in the sails of clean-tech markets in the U.S. It’s difficult to quantify how much and when, although I’m confident they would have had a positive impact. Having them removed doesn’t necessarily make things worse or doesn’t hurt us, but it removes that upside.”

Peter Lilienthal, CEO of Boulder-based Homer Energy, also said that he’s not sure what the administration’s policies regarding energy and the environment will actually be.

“There’s the sense that the political climate has changed and the president is anti-renewables, that’s clear,” he said. “But how it manifests as specific policy changes is unclear. There’s a sense of foreboding.”

Chris Votoupal, who manages lobbying and government affairs for the Colorado Cleantech Industries Association, said that most small-business owners in the industry, such as solar-panel installers, likely won’t be hit right away.

In fact, Votoupal said that despite the administration’s stance, his association is still very optimistic about the future of clean energy.

“Cities and large businesses — the Googles and the Apples of the world — want more clean energy,” he said. “Innovation is not slowing down.”

However, there is still uncertainty, especially regarding the United States’ role in the field. One likely outcome is that Colorado’s clean-tech companies look harder at global markets that are looking to hit climate targets.

“A lot of clean-tech companies in Colorado look to bigger markets regardless,” he said. “California, Asia, Europe. Will they look harder at those markets? Perhaps. It’s still too early to make that connection.”

Some Colorado companies, such as Homer Energy, don’t expect to be affected much by the federal government’s actions, because they are so involved in global markets.

“We’re a unique company in that we’re not that big, and we do something like three-fourths of our sales internationally,” Lilienthal said. “That protects us to a large degree from changes to domestic policy.”

Still, he’s not without his concerns. The U.S. Department of Energy recently shuttered its Office of International Climate and Technology, which worked with other countries to develop clean-energy tech. That closure will indirectly impact Homer, although Lilienthal is not yet sure how much the company will feel that change.

“I have been involved in some of the previous efforts of that office,” Lilienthal told BizWest. “It is hard to quantify the benefit that Homer Energy received from that involvement, but we are always looking for ways to increase our visibility and that did that at a high level.”

It’s not just energy policies that have clean-tech businesses concerned. Changes to trade could also have a negative impact on the industry.

One particular case that could hit the solar-panel industry involves the two major U.S. manufacturers of solar panels, Namaste’s Jones said. Those manufacturers have filed a petition that claims that solar panels made abroad, which are cheaper, hurt their business.

Jones said that the petition could impose significant tariffs on imported solar panels, which has the solar industry concerned: If that were to happen, there will be fewer solar panels purchased.

“It would devastate the U.S. solar industry,” Jones said. “It’s going to reduce the size of the current market, at a time where we were forecasting growth. As the costs come down, panels have been gaining in popularity.”

Although Jones said it’s easier to see the direct impacts of the trade case, he still has concerns over the broader policy changes.

“I’m still very concerned on the implications of pulling out of Paris, although they are harder to quantify,” he said. “I’m concerned about what it means as leaders in the world, and I’m concerned about the environment.”

There may be some silver linings as the federal government pulls back on environmental action and renewable energy.

One of the major benefits is seeing state and local government, as well as businesses, step in as leaders.

“States are going to fill the leadership void, and cities also,” Votoupal said. “I think the big business and corporate community is definitely stepping up. They see the future of clean energy, and they are filling that void.”

As for Colorado in particular, he said decisions are not being made based on mandates, but because of prices.

“Clean tech is as cheap as ever and has been getting cheaper,” he said. “There’s zero pollution, zero fuel costs, and it eliminates risks. You’re also seeing cities, states and large companies fill this void because there’s a lot of money to be made in clean tech. It’s the future.”

Jones added that the trend of seeing state and local government make advances in clean energy isn’t exclusive to the Trump administration.

“This has been happening all along,” he said. “The federal government hasn’t done much really, relative to what state and local governments have done. The Obama administration provided some support, but not with as much of an impact as what state and local governments were doing. Now, with that federal support taken away, it might do some harm, but we’re seeing clean-tech continue with state and local support.”

He added that the corporate community is also stepping in, with companies such as Apple and ExxonMobil both planning to buy more renewables.

While the administration’s impacts on Colorado companies are still unclear, groups such as the Colorado Cleantech Industries Association plan to continue to grow the industry within the state.

“We look at everything through the lens of ‘how do we foster clean-tech in Colorado?’,” Votoupal said. “How do we create an environment where startups and early-stage companies can grow? That mission won’t stop. We’ll continue to play aggressively at the state level.

“I would say nothing changes,” he said. “You put your head down, perfect your technology, look for pilot opportunities and continue to raise money to sell your product where you have the demand. CTIA is concerned about the direction of federal policy, but innovation and demand for clean energy is not going to stop.”