Arizona Legislators Push for Solar Energy Tax Incentives
The Tribune, Mesa, Ariz. - March 29, 2004
Some Arizona lawmakers and the solar energy industry are pushing for tax incentives intended to make generating electricity from the sun more popular among businesses, homeowners and schools.
But solar's expense has been dropping as the technology improves. Other
Western states are looking to take advantage of a potential boom in the
manufacturing of solar equipment, with New Mexico offering $3 million in new tax
credits last year.
Arizona officials said this state must protect its position as an innovator
in solar energy.
"We really are in a race with other states at this point, which you
haven't seen in the past," said Rep. Ken Clark, D-Phoenix. "That
tipping point is coming. It's going to be a race to see who gets there
first."
Clark is part of a bipartisan group backing four bills that would expand
income tax credits to include businesses, offer tax breaks on business property
taxes and open the door to using state tax dollars to install solar equipment in
new schools.
Bud Annan of Scottsdale, a former director of the federal solar energy
program, said the package could spark interest in solar energy as a long-term
alternative to fossil fuels.
Annan recently installed a two-kilowatt solar electrical generator in his
north Scottsdale home. He relied on the state tax credit and a subsidy from
Arizona Public Service Co. to reduce his out-of-pocket cost from $13,600 to
about $5,000.
"I walk away saying more people would do this if they were made more
aware of opportunity, especially if they were going into a brand-new home,"
Annan said. "They could just fold it right into the mortgage, and they
would never know. All they would see would be cheaper electricity
payments."
Last month, the Arizona Corporation Commission reaffirmed its commitment to
compelling electric utilities that it regulates to use more solar and other
renewable energies. But the commission's goals are comparatively modest, with
only about 1 percent of the state's electrical capacity coming from nonfossil
fuel sources this year.
Solar industry representatives said the state hasn't started to tap the
potential of sun power. The technology just needs a little more encouragement,
said Michael Neary, president of the Arizona Solar Energy Industry Association.
"Americans pay a good portion of their energy bill on April 15, because
there's so many subsidies at the federal level for traditional sources for
fossil fuels,"
Neary said. "If we didn't have the federal subsidies for the fossil
fuels, solar would have competed a long time ago. We all would be all using far
more solar today."
The main focus of the legislative package is first-ever incentives for
commercial buildings. Experts said businesses offer more possibilities than
homes because they can install solar equipment that generate many more
kilowatts.
"Whether it's a manufacturing facility or a Wal-Mart, if there's a flat
roof, a solar panel could be mounted on it and offset some of that electricity
use," said Heather Murphy, a commission spokeswoman. "To me, it makes
long-term sense because there's a payback and a savings to the utility customer
to consider. It allows less to be drawn from the grid and less that needs to be
generated in fossil fuels."
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(c) 2004, The Tribune, Mesa, Ariz. Distributed by Knight
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