Storm Clouds That Threatened Arizona’s Solar Industry Pass

[OKIsItJustMe]

http://sunpluggers.com/2010/02/storm-clouds-pass-for-arizona-solar-industry-000107.php

Storm Clouds That Threatened Arizona’s Solar Industry Pass

By Michael Balchunas

Published Feb. 25, 2010

A tempest in Arizona over proposed legislation that some feared could set back the state's growing solar industry has quietly ended.

The controversy involved House Bill 2701, which sought changes in the types of renewable energy the state's regulated utilities should be required to purchase, and which government body should require them to purchase it. After about a week of heavy media coverage, the bill was withdrawn.

Consumers who focused on the partisan political squabbling may have missed a much bigger picture, which includes these facts:

• The non-subsidized price of solar photovoltaic electricity in Arizona is among the lowest in the world.
• For many Arizona residents, solar purchased with the incentives available today may well be the lowest-cost electricity they will ever have an opportunity to buy. It may cost a nickel or less per kilowatt-hour, half the average price of utility electricity.
• The retail cost of non-subsidized solar electricity in Arizona is much closer to the retail price of conventional electricity than most realize. There is considerable misinformation on this topic.

Because solar PV is new to many, and can be complicated, consumers need accurate information to assess its value. Solar electricity is a long-term investment that can pay back handsomely in appropriate situations.

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[phantom power]

1. publicized risk, privatized profit.

[kristopher]

2. Interesting they didn't mention the nature of the controversy...

IIRC it was centered on the desire of some Republican lawmakers to have nuclear power reclassified as "renewable energy".

[OKIsItJustMe]

3. YRC

http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100223006832&newsLang=en

Solar Leaders Warn of Consequences for Arizona’s Renewable Energy Industry if HB 2701 is Passed into Law

If Passed, Legislation Would Threaten Arizona’s Growing Renewable Energy Industry, Lead to Elimination of Thousands of Existing and Future Jobs

February 23, 2010 12:55 PM Eastern Time

PHOENIX--(EON: Enhanced Online News)--SolarCity, Kyocera Solar, Inc. and Suntech Power Holdings joined with other solar energy providers to warn that if Arizona House Bill 2701 (HB 2701) is passed into law, it would jeopardize Arizona’s entire renewable energy industry. HB 2701 proposes to replace the existing Renewable Energy Standard (RES) in Arizona with one that would allow utilities to use existing nuclear and hydroelectric power to meet the RES requirements, eliminate distributed generation requirements within the bill and eliminate any interim requirements between now and 2025. The bill also sets up a far more burdensome regulatory scheme for solar companies and utilities, replacing the current system of regulation by the Arizona Corporation Commission with a “double regulation” approach that includes the Arizona State Legislature. If the bill passes, Arizona will have more government regulation of solar companies and utilities than any other state. The bill’s inclusion of non-renewables in the definition of renewable energy, new “double regulation” and other changes to the RES would likely halt all new renewable energy development in the state, undercut one of Arizona’s fastest growing industries and put thousands of existing and future jobs in jeopardy as the state’s economy recovers from the effects of the recession.

“HB 2701 would create a situation where solar companies and utilities have to answer to two elected bodies of government,” said Lyndon Rive, SolarCity’s CEO. “This ‘double regulation’ by both the ACC and then the Legislature will be both confusing and cost prohibitive. In addition, allowing existing nuclear and hydroelectric power facilities to satisfy Arizona utilities’ renewable energy requirements would freeze the development of renewable energy projects indefinitely and put Arizona’s entire renewable energy industry at serious risk. If HB 2701 is passed into law, it could shut down many solar companies in the state.”

“Passage of this bill will force us to reconsider our decision to put a factory in Arizona, moving those jobs and the accompanying tax base to another state,” said Steve Chadima, vice president of external affairs for Suntech Power Holdings. Suntech, the world’s largest manufacturer of crystalline silicon solar modules, recently announced it would select Goodyear, Ariz., for its first U.S. factory.

“Since 1999, when Kyocera established its U.S. Solar headquarters in Arizona, we have been working with the state of Arizona to develop and encourage the adoption of solar energy. The passage of HB 2701 would be a major setback in the pursuit of greater energy independence,” said Tom Dyer, senior vice president of Kyocera Solar, Inc. “It undermines our effort and progress made to create green jobs, and would be a major setback to Arizona’s reputation as a solar industry leader. Quite simply, this bill does not support growing the local economy, nor does it assist in protecting the environment.”

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