The Arizona Solar Tax and Who Benefits From It

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Respectfully submitted by Lawrence E. Rafferty (rafflaw) Weekend Contributor

When I think of places that would be ideally suited for taking advantage of solar power, Arizona is high on the list.  There are approximately 20,000 Arizona buildings utilizing solar collection technology to replace or supplement normal power sources. However, that number may soon decrease if a new “solar tax” is implemented.

“A new interpretation of state law in Arizona could force customers to pay property taxes on leased solar panels. In a state with an estimated 20,000 solar customers and 85 percent of new solar installations being leased systems, the implications of an extra charge are tremendous. The new tax could result in an additional $152 per year for a residential solar array and even more for larger installations, the Arizona Republic reported. What’s more, the tax would apply to both new and existing customers.” Think Progress

At first glance, I guess it should not surprise anyone that a new tax may be initiated.  However, when that tax is a tax on solar panels on commercial and residential buildings and includes solar panel arrays that are leased, it raised some eyes in Arizona.  Why would the State of Arizona decide on a tax on the collection of power of the sun?  The answer may surprise you.

“So, who would support the effort to charge solar customers more money? Solar advocates in Arizona point to the state’s largest utility, Arizona Public Service Company (APS).

Leasing solar panels is often the only option for middle class customers who want to go solar but can’t afford the cost of purchasing the array. And as rooftop solar in particular booms across the U.S., it’s middle class families that are leading the way — posing a real threat to utilities like APS. In fact, “solar technology is being overwhelmingly adopted in middle-class neighborhoods in the U.S., as more than 60 percent of solar installations are occurring in zip codes with median incomes ranging from $40,000 to $90,000,” according to a recent analysis by Mari Hernandez of the Center for American Progress. This trend has utility companies “worried that rooftop solar may undermine their business models as more of their customers go solar and buy less power from them,” Hernandez explained.” Think Progress

I guess maybe I should not be surprised that the APS may be against technology that allows its customers to buy less energy from the utility.  I guess I should also not be surprised who APS has teamed up with in order to fight the use of solar power in Arizona.

The public utility has ties with ALEC, the American Legislative Exchange Council and the state regulatory body also has very strong connections to ALEC.  “In the ongoing fight over whether Arizona will continue its remarkable expansion of solar energy, a ThinkProgress analysis reveals four of five members of the state’s energy regulator are tied to the conservative anti-clean energy group, the American Legislative Exchange Council (ALEC).

The fight centers on Arizona Public Service Co. (APS), the state’s largest utility, versus solar energy companies over how much customers should be compensated for the energy produced by solar panels installed on their homes and businesses. APS believes customers receive too much credit for the excess energy produced by their panels while the industry maintains changing the policy, known as net-metering, would devastate their promising and rapidly expanding industry.

The state’s energy regulator, the Arizona Corporation Commission (ACC), is expected to begin hearings on the net-metering proposal in November. Four of the five commissioners are members of ALEC, the group backed by fossil fuel interests, major corporations and the ultra-conservative Koch brothers. In 2012, ALEC dedicated its efforts to dismantling renewable energy laws around the country and though they failed completely in that effort, leaked documents from their recent annual meeting indicates they have no intention of backing down from the fight against clean energy.”  Think Progress 2

Doesn’t it seem that the Koch Brothers have their dirty energy fingers in just about everything?  As we have seen in the linked articles, the new tax would benefit the public energy utility to the detriment of many middle class consumers who are trying to save a few dollars in energy cost, while at the same time supporting the goal of using cleaner energy sources.  It is interesting that the idea of a new tax is proposed by the same organization and its backers that are against other clean energy supporting taxes that would negatively impact their corporate interests.

According to the free market proponents like ALEC and the Koch Brothers, the market is only free when it benefits their interests.  Everyone else, including the planet be damned. The fact that many of the consumers who would be disadvantaged by this solar tax would be middle class homeowners is just icing on the cake for ALEC.

It bears repeating that the additional cost of the tax would range from approximately $152.00 per year for a residential array and $9867.00 per year for a large commercial installation.  Is the Arizona Public Service Company trying to destroy the solar industry?

Will the ALEC packed state regulatory commission find in favor of the ALEC proposal or will it back the solar energy industry and residential and commercial consumers?  What do you think?

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422 thoughts on “The Arizona Solar Tax and Who Benefits From It”

  1. When the debt comes down, that will be a good thing. For now, it keeps increasing, rapidly. Any reasonable person should be concerned.

    If someone tells you rising debt is nothing to worry about, you should question it, not take it at face value.

    If cities can fall to bankruptcy, do you not consider the possibility that states, and the feds, can follow? We operate because we can borrow money internationally. (China owns much of our debt.) Are you not concerned about the consequences when and if we lose our credit rating?

  2. Yes Karen, let’s pray that Fundamentalists don’t take over our government here in our very own country.

  3. I’m concerned about our team. They haven’t found Joseph Kony. Africa is a bloody terrible battleground right now. Maybe worse than Syria. I don’t know how a limited force is going to do – especially operating in completely unfamiliar bush country.

  4. Feynman:

    I did indeed answer your question. Please see my answer above in which I clearly indicate that I am not committed to any particular program, and only care about results. If anyone thinks they can improve a program, I want to hear it. And I have also listed, in detail, problems with school lunch programs.

    I don’t know how much more detail you want.

    You have not addressed any of the concerns, statistics, articles, or data, except to brush them off as some come from conservatives.

    I have seen this repeatedly in the mainstream media, where no conservative is “allowed” to write an article or voice an opinion that will actually be considered. The habit appears to be spreading to the general population.

  5. Karen, I read Krugman. Not Milton Friedman. You chose your guys. I chose mine.

    I believe Krugman. The debt does not scare me. It will come down. It would be damn helpful if the Republicans would approve some infrastructure repairs. And stopped wanting to eliminate capital gains which are at a lousy 15% rate now! And eliminated offshore tax havens.

  6. Karen,

    Sorry.

    I too feel that I have not gotten answers. Remember that hospital? Remember those social programs? SNAP, Planned Parenthood, Head Start?

    I am in no position to argue statistics and methodologies with you. I asked you to read the letter to the WSJ from the president of the AMA. I thought the post from healthblog made some good suggestions and told you so.

    And again, opinions are not facts. Anecdotes are not facts.

    But I have tried my best to respond. Perhaps you need a better correspondent.

  7. May I make (another) brief change of subject, and invite us all to hope and pray for the safe return of the 300 Nigerian girls, kidnapped from school from Islamist militants. They just took another 8 girls. This group vehemently oppose educating women, and have a history of trafficking girls. The US is sending in a team to help. I hope other nations follow suit. Those poor girls must be going through hell right now. I read the interview of one of the girls who escaped into the bush, hid with a stranger, and then walked for many hours to get back. Brave girl. Her friends must be going through hell right now. I just heard about the US team, and am wish them safety and success.

    http://www.foxnews.com/politics/2014/05/06/us-preparing-team-to-help-nigeria-locate-kidnapped-girls/

  8. Darn auto correct, “spiraling,” not “spirally.” Although spirally debt sounds kind of fun.

    1. Karen – Krugman is an idiot, but widely read and believed by the left. However, none of his theories seem to work.

      I do like the idea of spirally debt, too. Gives it a certain flair that it did not have before.

  9. You keep ridiculing the “scary national debt.”

    What, exactly, do you propose will happen if we continue to increase the debt? We are already in the trillions. After that we get into quadrillions, quintillion, sextillion, and on until the highest number I am aware of, googolplex, which is 10 to the google power.

    But you seem to think that spirally debt will have no consequences, that it’s paranoid to even bother to think about it.

    At what point will national debt concern you? We have had major cities here in CA fall to bankruptcy, so it’s already happening on a state scale. Will you sit idly by, supporting our spending addiction, and then be surprised when we lose our credit rating? Were you aware that we have been in danger of losing our international rating already?

    I feel like I’m Aesop’s ant preaching to the grasshopper.

  10. Help. I have just lost another two short comments. Karen, you’ll have to forgive me if I am unresponsive. WordPress will not cooperate. I don’t read or listen to MSNBC. Maybe I saw it on Huffpo. It is not exactly the same as offering Heritage.

  11. Feynman:

    I have posted articles written by a NC hospital, with references, articles by the AMA, with references, I posted a poll and I actually included the poll questions and methodology . . . time after time I have provided facts and data and gotten non-sequiters.

  12. Yes. The poll with 49% approval was conducted by MSNBC with the laughable question I explained above.

  13. Karen, Fox news will debunk anything about Obama except for the day he is impeached.

    You decried political hostile rhetoric. Do I not get to post examples that equally objectionable? . So Sandra Fluke goes to a ‘Christian’ school (Georgetown,- it’s not like Liberty U) and so it’s ok for Rush to repeatedly, for days, call her a slut.?

    How can I rebut anecdotal evidence? Where’s that hospital? Your posting stuff generated by one right wing hack/journal after another.

    We’ve agreed that polls are easily manipulated. I believe it is done by both the left and the right. Kaiser is maybe the only trustworthy one.

    When people are given a description of ACA policy, they favor it. When they are then told it is Obamacare, they hate it. Why do you suppose that is happening?

    How about all those ads produced by Koch funding of people who have been harmed by Obamacare insurance ? Every one of them debunked and should be embarrassing Republicans. You’d think they would stop producing them. But they don’t. Why? Because their skilled propaganda machine works. But those ads have provided us with interesting lessons. Any assessment of an individual’s experience in purchasing ACA approved insurance coverage or an evaluation of cost comparisons requires careful examination.

    I thought your facts were few. You’ve presented personal anecdotes. You have presented an awful lot of opinion written by right wing partisans or Republican elected officials. Except for that hospital. That sounds like it’s trying to be a fact. But without a name it is useless.

    I suggested you read Steve Brill and Jeremy Lazarus, president of the AMA. I cannot post links because I find those posts are likely to get caught in WordPress.

    We began with our shared concern for the single moms and their children. I said I support SNAP, Medicaid, Head Start, Planned Parenthood free school lunch. All programs that support single moms and their children. I confess I’m not clear if you support them. If there was any response, I thought it was equivocal. CPS should be involved, the ol’ bugaboo of waste fraud and abuse, only the very neediest, until we wind up that the Medicaid expansion is no more than shiny useless cards. Sorry. I consider those objections as examples of more concern about taxation and that scary national debt while not being terribly concerned about single moms and their kids. Just my opinion.

  14. We are small business owners in the private market, and we don’t screw anyone.

  15. That’s like discounting anything and everything I have to say, and information I can provide, because I am a fiscal conservative, but listening to anyone who is a Liberal.

    That makes no sense.

  16. Feynman – so Forbes is not OK, but partisan MSNBC is?

    I just look at the data.

  17. 220 trillion is the number I see bandied about for the real debt.

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