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. Byron, Having worked many med mal cases it is incredible the animus between those 2 professions. Attorneys are jealous of docs, they make more money and have more esteem. It was attorneys who wrote this act. They are sticking it to docs, BIG TIME.

  2. Walter Reed Army Medica Center underfunding scandal- Bush. Yes Boooosh.

  3. Obamacare is quite literally, slavery for doctors. And it will wrap its tentacles around every aspect of our lives. We will be owned by the state, it is as simple as that.

    We will be told what to eat and drink, what activities we can engage in, skydiving and rock climbing will be out. They could shut down hazardous jobs like oil drilling and coal mining by refusing to cover people who work in those industries.

    In short we will be like the Eloi of H. G. Wells’s Time Machine, sacrificial animals working for the “good” of the state which will be run by the Morlocks. It is a bleak future and one which needs to be fought against and hard.

  4. Obamacare is quite literally, slavery for doctors. And it will wrap its tentacles around every aspect of our lives. We will be owned by the state, it is as simple as that.

    We will be told what to eat and drink, what activities we can engage in, skydiving and rock climbing will be out. They could shut down hazardous jobs like oil drilling and coal mining by refusing to cover people who work in those industries.

    In short we will be like the Eloi of H. G. Wells’s Time Machine, sacrificial animals working for the “good” of the state which will be run by the Morlocks. It is a bleak future and one which needs to be fought against and hard.

  5. KarenS, I feel your pain and frustration. You can lead a horse to water..

  6. Nick:

    The best thing possible is for Democrats to continue this willful blindness about Obamacare and just keep on, full steam ahead.

    The majority of Americans oppose Obamacare in full or in part.

    How do you punish a politician who ignores the wishes of the people he or she represents? At the voting booth.

  7. A True Believer hears that 4 out of 19 top cancer hospitals that responded accept Exchange policies, that 7 out of 10 doctors in CA do not accept Exchange Policies according to the CA Medical Association, and they just keep blindly pushing forward that Obamacare is wonderful, completely ignoring any evidence to the contrary.

    Because I have provided facts, figures, articles, and reasoned explanations, all of which you have completely ignored.

  8. Feynman:

    Please actually read the article. The journalist at CNN actually did contact the hospitals and investigated for himself.

  9. Yes, Feynman, I did explain about women being denied breast cancer treatment. I liked to multiple articles, including one by CNN, about only 4 out of 19 top cancer hospitals accepting Exchange policies.

    Hope that clears things up.

    Annie – did you specifically ask your friends if they:

    1)already had doctors under a prior insurance policy, and if so, did they accept their Exchange policy?
    2) did they not have any insurance at all previously, so had no doctors they cared about keeping?
    3) have they used their Exchange policy for anything greater than a cold, such as back surgery or cancer?
    4) have they tried calling the top doctors in their area, and asked if they accepted their Exchange policy?

    Because the card can look just great until you try to actually use it. I would like to know how rigorously they tested their Exchange policy.

    Because the facts do not lie. 4 out of 19 hospitals accepting Exchange policies is just abysmal. If you are lucky enough to live near those 4, then that works out great for you. But what about other people?

  10. BTW,

    None of the parties interviewed in the washington ugh examiner have done any studies.

    EVERYBODY is making ‘estimates’.

    I’d withhold the 7 out of 10 until there are REAL numbers available.

  11. All of this back and forth about whether Obamacare is great or horrible. Well, it will continue unabated here and elsewhere. But here is one thing not debatable, the next election will be a referendum on Obamacare. And for those who think it’s great, hold on real tight, it’s going to be a rough day in November.

  12. Annie,

    Wonderful post @ 4:21! It’s too bad when someone just drops in and misses the course of the conversation.

    Speaking of missing stuff, did Karen ever explain about women being denied breast cancer treatment? I read some stuff about pink ribbons but I am not clear about Karen’s concerns about breast cancer. I thought your links were very good. But as I said…did I miss something?

  13. Annie,

    There’s a wonderful poem. Perhaps you know it….Ozymandias. Someday we should discuss it.

  14. Game over. Can no longer locate goalposts.

    Also, when we have reached the stage of using..’True Believers’…..intelligent conversation has keeled over in desperation AND exhaustion..

    Besides…I just lost another wonderful response in WPress.

    Sometimes, you just gotta go along with the gods..

  15. Honestly, 7 out of 10 doctors don’t accept it and people still defend Obamacare. There is no reasoning with True Believers, and they cannot be moved by compassion.

  16. Support for Obamacare, in spite of the actual data, just seems so heartless and callous.

  17. Will randyjet’s story be much comfort to the breast cancer patient who cannot get treatment?

  18. I have had a pre-existing condition for 20 years (asthma). And yet I managed to get both group insurance, and then individual insurance.

    Like I have said (repeatedly), you do not keep toying with a 6 foot tall law because you like 12 things.

    You repeal the law and then work on getting those 12 things, one or two at a time. Making these gradual adjustments allows the industry to adapt and recover.

    So you can list 11 more things that you like and nothing will change.

    You cannot defend a 30% provider participation rate, strict drug formulary with no off-formulary coverage, and policies restricted by county.

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