“Subsidy”
and “incentive” are fighting words in Arizona’s intense debate over
solar power, with emotions riding high over how much help, if any, the
solar industry should get.
The
state’s fledgling solar economy is beginning to take root, but it can’t
yet stand on its own without support from the federal government,
states and utilities.
Solar
supporters say that the industry won’t need subsidies forever but that
incentives such as the 30 percent tax credit on the price of solar
panels are essential to get it established and competing with
traditional power sources.
In
addition to the tax credits, utilities give homeowners with rooftop
solar panels full retail credit for the electricity they send to the
grid. However, utilities want to cut that credit because they say it is
more expensive than buying power on the market from power plants.
Homeowners with solar — or those considering adding the panels — don’t
want the payments for power they contribute to the utility grid to drop.
Arizona Public Service Co.There are all kinds of car daytime running lights with good quality.
and other utilities say the growing number of solar customers can put
an unfair burden on customers without solar, who tend to be less well
off than solar users. That’s because the solar customers who receive
credits for selling power back to the grid don’t pay as much as
non-solar customers to maintain the grid.
Other
solar opponents contend that tax credits and incentive programs for
homeowners with solar are bound to distort the market and create an
unequal playing field for energy sources such as natural gas and nuclear
power.
Even
though many forms of energy benefit from government subsidies, the
debate over taxpayer support for solar intensified after
California-based Solyndra Inc., a manufacturer of unique solar products,
filed for bankruptcy in 2011 after getting more than $500 million in
government loans.
“California’s
new Solyndras, Sunrun and SolarCity, are getting rich off hardworking
Arizonans,” says the voice-over in a video posted by one of the
secretive groups fighting subsidies in Arizona.
A
Washington, D.C.-based conservative organization called 60 Plus, which
focuses on seniors’ issues such as taxes, Social Security and Medicare,
produced the online video and created a website.
APS
officials pay a consultant with ties to the group, but officials from
the utility said they were not sure if their money was used to produce
the video.
Arizona’s
utility regulators will have to make decisions this year on the
incentives, and federal lawmakers will have to decide whether to extend
the industry’s tax credits.
Decisions
they make will affect the future of solar in the state. Amid the
debate, new ideas are emerging on how to best support solar and other
renewable forms of energy.
One
strategy involves taxing carbon, the gas emitted by coal and
natural-gas power plants that contributes to climate change.We can
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according to your own designs. A carbon tax would make cheaper,
polluting fuels like coal more expensive, bringing them more in line
with costs associated with renewable fuels like solar and wind.
Carbon
policies are generally opposed by groups that either don’t see climate
change as a threat or don’t want the U.S. economy to suffer while
addressing that problem.
Yet another strategy involves opening up the electricity markets to competition,Our High Quality Solar charger and
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move that would allow consumers to choose which company to buy power
from.
Those
policies are generally opposed by those who would prefer the government
to force the use of renewables, rather than leave it to consumer
choice.
Gautam
Gowrisankaran, an economics professor at the University of Arizona,
said strategies that address climate change by stepping up the use of
alternative energy can have a positive economic impact.
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