Greetings, solar enthusiasts! Today, I bring some stimulating news for those who keep an eye on Arizona’s solar landscape. Arizona has always been one of the most important states from a solar viewpoint, mainly thanks to its abundant sunshine. An upcoming legislation—SB 1066—may shift the dynamics on the ground and provide some food for thought to solar companies operating in and out of the state.
As solar aficionados, it’s crucial that we understand what this means for us and for the solar world at large. The bill, currently working its way through the state Senate, proposes a rate of 12.5% in taxes for each dollar of revenue acquired through the sale of solar-generated electricity exported out of the state. Imagine that! This fund—the solar royalties fund—is a bit akin to Alaska’s oil export tax, with the generated funds redistributed to the county’s residents. Quite a game-changer, isn’t it?
However, before you give your solar array for home a worried glance, let me clarify that certain solar assets will be exempt from this proposed tax. So, if you’ve got solar panels for your home, like residential rooftop solar, along with commercial and industrial onsite solar or off-grid solar — there’s nothing to fret. This law is more directed towards solar assets delivering power to out-of-state utilities. If you ask me, this delineation is an interesting facet of this bill!
Solar companies, naturally, have something to ponder here. Proponents of the bill relate it to compensating residents for their land’s “exploitation,” while critics, like Senator Priya Sundareshan, argue against it, citing a false equivalency with the oil tax. As she puts it eloquently, the environmental impacts of oil and gas extraction can’t be compared to “passively letting the sun fall on a solar panel.”
Looking at the bigger picture, for a solar company with interstate operations, this bill could potentially instigate a taxation snag. This has been voiced by Stan Barnes, an apparent lobbyist for the Interwest Energy Alliance. His worry? This could turn into a taxing tit-for-tat among states, pushing up energy rates and dimming the prospects of solar companies.
This unfolding situation is certainly making us pause and ponder about the ramifications of the tax changes! It underscores the importance of keeping up with legislative changes that could disco dance all over the solar landscape. Remember, information is power (pun intended). I’ll make sure to monitor the changes and weigh in with more insights as events unfurl.
Until next time, solarans, keep those panels shining and your passion for solar burning! Cheers to a greener, more sustainable, and sunlit world! You can explore the full bill and associated proceedings and documentation [here](website).
Original Article: https://pv-magazine-usa.com/2024/01/30/arizona-proposes-solar-power-export-tax/
